For the longest time, I was on the fence about creating manual invoices versus using invoice software for my side hustle. My tech-savvy friends often raved about using the latter for their small businesses. Still, I wondered if it would work for me or if adding a new tool would make things more complex and lengthy. Honestly, I was too lazy to try it out.
One fortunate quarter, when business was busier than usual, I was scrambling to find time; even sending my invoices on time felt like a struggle. I was chatting with a friend who said, “Are you seriously wasting your time and not using a free invoice software for small businesses? They’ll make your life so much easier!”
That was my eureka moment. This time, I decided to step back and set aside a few hours (amidst all the pressure) to explore how invoice software works. As I dove deep into the features, I was impressed. I saw how easy it made even other things, and then there was no looking back.
If you are where I was, my experience and learnings around invoice software might help you make the shift. Read along to learn more.
Table of Contents
- What is invoice software, and who needs it?
- Best Invoice Software for Small Businesses
- What to Look for When Choosing Invoice Software for a Small Business
Most people believe such tools are for mid-sized or large businesses with high volumes and prefer to use a simple solution like an invoice template. I was one of them, too.
However, I’ve experienced firsthand that invoice software is handy for anyone and everyone billing clients or customers, especially those who like to do it faster, smarter, and with fewer mistakes. Smarter because you can use an invoice software to set up templates, calculate taxes, send payment reminders, and even track which invoices are paid, overdue, or outstanding.
Popular invoicing solutions for small businesses also integrate with accounting systems, CRM platforms, and payment gateways. This way, they help to streamline the entire billing and cash flow process. On that note, let me take you through some of the best options I’ve found.
Best Invoice Software for Small Businesses
You may wonder why go through a roundup for a simple task like invoicing that you’re already doing manually. But here’s the fact: Without smooth invoicing, your cash flow can slow down, admin work can pile up, and worse, you may even create friction with clients. These are risks you can’t afford.
Here are some of the best free, freemium, and paid invoice software options for small businesses.
1. HubSpot Payment Links
HubSpot Payment Links is a powerful invoice software feature in HubSpot’s Commerce Hub. With this solution, your invoice software doesn’t just integrate with the HubSpot CMS — it’s already part of it. I’ve tried it and can vouch that it makes sending out invoices and collecting payments super easy.
To use it, you simply need to create a payment link to process a one-time or recurring payment (depending on your requirements) using straightforward steps. You can even embed your manual invoices with these links or add them to your emails.
Next, you have to share it with your customers and get paid. They’ll be delighted with the ease of payment and the exceptional checkout experience. And that’s not it. Using it can also accomplish many tasks that a generic invoice software cannot do alone. For instance, it can instantly update customer accounts with purchase history.
Moreover, as the Payment Links integrates into HubSpot’s Smart CRM, you no longer have to switch between multiple tabs, tools, and systems. You can keep your commerce and customer data in one unified space for a seamless and efficient workflow. I found this feature incredibly helpful for a small business with limited resources.
The Details
- Cost: While you don’t have to pay to test the tool, you must sign up with Stripe; This tool is also included in Sales Hub Starter, which costs $15 a month or $90 a month for a professional plan
- Payment method for clients: Credit card, Debit card, ACH, Apple Pay, Google Pay, Stripe, and many more
- Payment Cost: Stripe fees plus 0.5% per transaction after 90 days
- Multiple currencies? Yes
- Free trial or demo? Free demo
- Integrates with HubSpot? Built-in
What I
Like
It’s a smart tool that massively reduces work for those with existing HubSpot accounts (which is most of us, right?). Personally, I’ve used it to pull product information straight from my existing HubSpot account without manually inventing line items, and that is something I love!
Pro Features for Small Businesses
- Completely integrated with sales and marketing processes to reduce work duplication
- Allows customers to pay directly from the invoice
- Creates secure, shareable links to include in quotes, emails, chats, etc.
- Supports recurring payments or subscriptions via ACH or credit card
- Over 1,000+ custom tool integrations are available to make life simpler
2. QuickBooks Online
If you have a business, you’ve probably already heard of QuickBooks. They’re considered by many to be the gold standard in accounting software. I think their invoicing tool, QuickBooks Online, is brilliant too — and is way more than simply invoice software.
Much like the functionality of the HubSpot Sales Hub, QuickBooks Online automatically connects invoices and payments to accounting tools. You can use it to create custom invoices, turn estimates into invoices, or even duplicate invoices across multiple customers. When a customer pays an invoice, it gets recorded in your bookkeeping and included in your reporting dashboard. This way, you can see cash flow, profit and loss, and other financial data. You can also get help with taxes.
The Details
- Cost: Simple Start – $17.50/month; Essentials – $32.50/month; Plus – $49.50/month; Advanced – $117.50/month. The inclusions increase as you progress through the plans
- Payment method for clients: Credit cards, ACH, Apple Pay, PayPal, and Venmo
- Payment cost: Depends on the gateway
- Multiple currencies? Yes
- Free trial? No
- Integrates with HubSpot? Yes
What I Like
I’m a big fan of the accessibility and integrations. Many businesses are already familiar with and use QuickBooks. This familiarity and additional features, such as invoicing and connecting your billing to your main QuickBooks software, make it a winner. Moreover, its extensive and smooth integrations also save a lot of time.
Pro Features for Small Businesses
- Accelerated invoicing features to duplicate similar invoices across customers
- Split invoices by percentage of work or line item
- Detailed reporting with easy-to-read dashboards
- Real-time invoice tracking can send you updates via text message or email
Cons
- Lacks industry-specific features
- User complaints of the system crashing/instability
- Reports of generic, impersonal support
3. FreshBooks
FreshBooks is a payment-integrated invoice software that’s designed for small businesses focused on services. You can use the invoice software to set a retainer fee and track billable hours against it. For any changes in the scope of work, the tool makes it easy to highlight what’s new and discuss it with the client. It also does the heavy lifting for admin tasks like sending reminders and charging late payment fees.
Here’s a video showing how to use it.
The Details
- Cost: Lite – $10.50 for five client invoices; Plus – $19 for up to 50 clients; Premium – $32.50 for unlimited clients; Select – Contact FreshBooks for more information
- Payment methods for clients: Stripe, PayPal, Venmo, ACH, Credit Card
- Payment cost: ACH – 1%; Credit – 2.9% + $0.30 per transaction
- Multiple currencies? Yes
- Free trial? 30 days
- Integrates with HubSpot? Yes
What I Like
I appreciate that FreshBooks grows with your small business through its tiered pricing model. While their Lite plan focuses on basic invoicing, the software quickly becomes an all-in-one accounting solution as you upgrade. Higher plans can also handle other small business needs like payroll, inventory, and ecommerce.
Pro Features for Small Businesses
- Access invoice software online from desktop or mobile devices
- Set up automation for emails or payments
- Include deposits in your quotes
- Track revenue by inventory or hours
Cons
- Requires a phone number to sign up for a free trial
- Kind of pricey for the features compared to others on this list
- Inventory management is manually entered, not an ideal solution for businesses managing extensive inventories
4. Indy
Indy is an invoice software designed from the ground up to give small business owners, entrepreneurs, freelancers, and other self-employed professionals everything they need to get paid faster. It offers simple, easy-to-use invoicing and streamlines the business. How it integrates with the rest of their tool suite is what I think makes their invoicing software stand out.
With Indy, you get a shared space where all your work lives. You can bring clients into your workspace so you’re always on the same page, even when you’re not in the same room. You can also turn proposal estimates and time-tracking sheets into billable invoices with just a click. The flexible online and offline payment options it provides make it easier for clients to pay you and for you to avoid costly processing fees.
The Details
- Cost: It’s free (generating three invoices per month); Paid plans start at $18.75 monthly for unlimited invoicing, recurring invoices, and automated workflows
- Payment methods for clients: Credit Card, Debit Card, ACH Payment (direct deposit), PayPal, Wire Transfer, Mailed Check, Zelle, and Stripe
- Payment cost: Depends on the payment gateway
- Multiple currencies? Yes
- Free trial? Free plan with 7-day free trial for Indy Pro
- Integrates with HubSpot? Through Zapier
What I Like
Indy is an excellent choice for small service-oriented businesses looking to create and send professional invoices quickly and create a unified source of truth. I find it’s brilliant as it keeps everything from proposals to signing contracts, tracking billable hours, managing tasks, creating invoices, and receiving payment in one space.
Pro Features for Small Businesses
- Easily turn time-tracking sheets into a billable invoice with just a couple of clicks
- Create recurring invoices for retainer clients
- Automated follow-up messages that remind clients to pay invoices
- Customizable smart fields that pull info from your CMS to make messaging more personal.
5. Zoho Invoice
Zoho Invoice is a lightweight, cloud-based, free invoicing software that is powerful for small businesses, especially agencies. The software handles invoicing, expense, and time tracking, and gives you an extensive library of invoice templates, all entirely free of charge.
I like that you can access the invoicing solution through the Zoho Invoice app and Zoho’s online accounting software, Zoho Books.
When you send out invoices using it, your customers can access a self-service customer portal to make payments. They can do this manually or allow auto-debit for hassle-free recurring payments. As for your convenience, you can use it anywhere with an internet connection. It also offers simple automation options to simplify your life further.
The Details
- Cost: Free
- Payment methods for clients: Credit Card, ACH Payment, Square, PayPal, and many other payment platforms are available
- Payment cost: Depends on the payment gateway
- Multiple currencies? Yes
- Free trial? It’s always free
- Integrates with HubSpot? Yes
What I Like
I love that it is free invoice software for small businesses. It truly helps take invoicing off the to-do list. Most other options give this kind of freedom at some price.
Pro Features for Small Businesses
- Track various expenses minutely, including mileage
- Send invoices via text, email, or customer portal
- Create and send estimates that automatically turn into invoices
- Self-service customer portal for customers to view invoices and pay
6. InvoiceApp
InvoiceApp is another leading online invoicing and billing platform designed to simplify and streamline the invoicing process for startups, small business owners, and freelancers. What stands out is its user-friendly interface and robust features, which make creating, managing, and sending professional invoices easy.
The Details
- Cost: Free plan (up to 10 invoices); Basic – $5/month; Premium – $15/month
- Payment method for clients: Stripe and PayPal — only available on paid plans
- Payment cost: Depends on the payment gateway
- Multiple currencies? Yes
- Free trial? 14 days
What I Like
Their software is built on the foundation of convenience and innovation, which I find is a significant differentiator. Another aspect that stands out to me is how comprehensive its features are, compared to the price to pay. Using it, small businesses can focus on their core operations while managing their financial transactions effectively.
Pro Features for Small Businesses
- Reasonable pricing
- Create and send customized estimates, quotes, and invoices
- Comprehensive financial accounting automation features
- Reports for better decision making
Cons
- Requires a phone number just to see the free version
- Payment Gateway Integrations and API access only available on the paid plans
7. Billdu
Billdu is another excellent, easy-to-use invoicing software for small businesses. Its intuitive interface and comprehensive features simplify creating and sending professional-looking invoices, all through the invoicing app.
In addition, Billdu helps you book, sell, and even get paid. Its compatible apps, such as the appointments app, online store app, and website builder, give you the convenience of everything you need in one place.
The Details
- Cost: Lite – $4.99/month (10 invoices); Standard – $9.99/month; Premium – $19.99/month
- Payment method for clients: Credit Card, Debit Card, and ACH Payment
- Payment cost: Depends on the payment gateway
- Multiple currencies? Yes
- Free trial? 30 Days
- Integrates with HubSpot? No
What I Like
I love the app’s simplicity and the fact that it gives you a full 30-day trial with everything unlocked without asking for any billing info. This communicates that they trust their work, and you can learn what you need and don’t if you decide to go for a paid plan. I also like Billdu’s reputation for updating its features frequently to meet the evolving needs of its users.
Pro Features for Small Businesses
- Creating and managing several companies from a single account
- Creating your team of users with different roles and access rights
- Compatible Billdu apps
8. PayPal
So far, all of my suggestions have been invoicing software options that handle payments. PayPal is slightly different. It is a payment software that can also handle invoicing. Its invoicing tools are simple, intuitive, and free with the merchant account. Just create an invoice using the template and send it by email. That’s all!
Here’s a video showing how easy this is.
The Details
- Cost: Free
- Payment method for clients: Credit Card, Debit card, Apple Pay, PayPal, Venmo, Pay Later, QR Code
- Payment Cost: Debit, Credit, and Apple Pay – 2.99% + $0.49 per transaction USD; PayPal, Venmo – 3.49% + $0.49 per transaction USD; Pay Later – 4.99% + $0.49 per transaction USD; QR code Transactions – 2.29% + $0.09 per transaction USD
- Multiple currencies? Yes
- Free trial? No set up or monthly fees, you only pay when you get paid
- Integrates with HubSpot? Through Zapier
What I Like
If you need a payment gateway but don’t need fancy inventory management or other features, PayPal can be a great free invoice software for your small business. This is especially true if you use it to sell with a QR code.
Pro Features for Small Businesses
- No subscription fee
- Partial payments and tips
- Automatically sends scheduled or recurring invoices
What to Look For When Choosing Invoice Software For a Small Business
I know, I know. Perhaps your first instinct is price. That’s how most small business owners would approach invoice software. I started in the same vein as well because, let’s face it, we’ve all got our budgets.
However, from experience, I can tell you that you must look at this slightly differently: Consider your invoice software an investment. You want to be sure you’re investing in a solution with the features you need to save your business time and boost efficiency (and bottom lines). How do you make the choice?
I’ve compiled some questions to help you screen.
Does it have the ability to grow with you?
Most freemium invoicing apps offer plans based on the number of invoices you can send, the number of clients you can bill, or the number of users you have. Shortlist something you can upsize based on your anticipated needs a few years later.
Having said that, if you don’t have that many requirements and are just starting, you can go for a simpler tool like HubSpot Payments Links.
My two cents: Aiming higher could be better than going through the botheration of switching tools later because of limitations.
Does it support automated invoicing and reminders?
Creating and sending invoices manually takes time that could be better spent focusing on your clients. Not to mention sending payment reminders or tracking down late payments.
My two cents: Choosing a software that offers such automation may be worth the additional cost, even if you have to pay or pay extra for that matter. Think of the opportunity cost!
Does it accept payments and multiple payment methods?
Combining your invoice software with your payment gateway significantly streamlines the billing process and makes life much easier for you and your customers.
My two cents: When you make paying easier for your customers, you’ll also get paid more often. The same is true when you offer multiple ways to pay. So, try to shortlist based on the payment options most of your clients prefer.
Does it integrate with your existing sales tools and CRM?
Having to enter data twice wastes time and increases the likelihood of errors. Integrations cut down on busy work and help ensure accuracy. They can also expand your reporting and enhance your sales process.
My two cents: I’ve seen this is particularly brilliant for small business owners and solopreneurs with a few people donning many hats. It’s totally worth shelling out an extra budget.
Which is the most value for money option?
Last but not least, once you’re clear with all the above, weigh the pros and cons, keeping the pricing and transaction charges in mind. While many options in this list are free or low-priced, eventually, their plans may become comparatively more expensive when you upsize. Similarly, in some platforms, the transaction fees may be higher than others. So, it’s better to keep the bigger picture in mind.
My two cents: Shortlist the payment methods you need for clients and the features you desire in invoice software, and pick out the best options that provide them. Once you have that list, compare pricing and transaction charges to make a well-rounded decision.
Ready, set, invoice!
You’ve probably outgrown handmade invoices if you’ve stayed with me until now. Now is the time to choose an invoice software for your small business that will keep you growing. Think about the features that will fit your small business’s needs and where you want it to be in the future.
Next, you can decide whether to opt for free plans or go for paid versions. If it’s the latter, I’ll suggest using free trials and demos until you’ve found the best fit invoice software for your small business. Happy invoicing!
Editor’s note: This post was originally published in May 2022 and has been updated for comprehensiveness.
