Best Invoicing Software in 2026
Create professional invoices, get paid faster, and automate your billing workflow.
By Toolradar Editorial Team · Updated
FreshBooks is best for freelancers and service businesses—beautiful invoices with built-in time tracking. Wave is completely free and surprisingly capable for basic needs. QuickBooks Online suits businesses needing full accounting alongside invoicing. Stripe Invoicing is ideal for online businesses already using Stripe payments. Zoho Invoice offers great value with the Zoho ecosystem. Xero excels for growing businesses wanting modern, cloud-native accounting.
Getting paid shouldn't require wrestling with software. Yet too many freelancers and small business owners waste hours creating invoices, chasing payments, and reconciling accounts.
Good invoicing software lets you send professional invoices in minutes, automatically track what's owed, and follow up on overdue payments without awkward conversations. The right choice depends on your specific needs: simple invoicing vs. full accounting, hourly billing vs. fixed projects, and how clients prefer to pay.
The market has matured significantly. You don't need to pay for complex accounting software if you just need invoicing. But if you do need accounting, getting it integrated from the start saves migration headaches later. Here's how to choose the right tool for your situation.
What Is Invoicing Software?
Invoicing software creates, sends, tracks, and manages invoices for your business. But modern tools go far beyond generating PDF invoices.
Online payment acceptance lets clients pay by credit card, bank transfer, or services like PayPal directly from the invoice. Automatic reminders follow up on overdue invoices without you lifting a finger. Recurring billing handles subscription and retainer clients automatically. Payment tracking shows you exactly what's paid, pending, and overdue at a glance.
Many invoicing tools now include or integrate with accounting features: expense tracking, profit/loss reports, tax preparation, and bank reconciliation. The line between invoicing-only and full accounting software has blurred significantly—you'll need to decide how much you need.
Why Invoicing Software Matters
Professional invoices get paid faster. When your invoice looks professional, includes clear payment terms, and offers easy payment options, clients take you seriously and pay promptly. Studies show that invoices with online payment options get paid up to 3x faster than those requiring checks or manual transfers.
Automated reminders eliminate awkwardness. Instead of personally chasing clients for payment, automated systems send polite follow-ups that feel less personal and more systematic. This protects relationships while ensuring you get paid.
Visibility into cash flow is essential. Knowing what's outstanding, who pays slowly, and when money is coming in helps you make better business decisions. Growing businesses especially need this visibility for planning.
Time savings compound. What seems like 15 minutes per invoice adds up. Automating invoicing, reminders, and payment tracking can save hours weekly—time better spent on actual work.
Key Features to Look For
Create professional, branded invoices with your logo and customized details
Accept credit cards, ACH/bank transfers, and digital wallets directly
See paid, pending, and overdue invoices at a glance
Automatic follow-up emails for unpaid and overdue invoices
Automatically generate and send invoices on schedules
Invoice international clients in their currency
Track business expenses and attach receipts
Bill hourly work accurately with built-in or connected timers
Create and send invoices from your phone
Let clients view invoice history and make payments
Revenue, profit/loss, tax summaries, and cash flow reports
Match transactions with invoices and expenses automatically
How to Choose Invoicing Software
Evaluation Checklist
Pricing Overview
Solopreneurs with basic invoicing needs (Wave, Stripe basic)
Independent professionals with up to 5-10 clients
Growing teams needing more features and client capacity
Businesses wanting invoicing + complete accounting suite
Top Picks
Based on features, user feedback, and value for money.
Freelancers, consultants, and service providers who bill for time
Wave
Budget-conscious freelancers, side hustlers, and small businesses starting out
Established businesses needing invoicing and comprehensive accounting together
Online businesses, SaaS companies, and developers using Stripe for payments
Businesses using Zoho apps or wanting affordable full-featured invoicing
Xero
Growing businesses wanting cloud-native accounting with global capabilities
Agencies, consultants, and teams who bill extensively by the hour
Mistakes to Avoid
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Buying full accounting software when you only need invoicing—Wave's invoicing is free, and simpler tools cost less than QuickBooks if accounting isn't needed.
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Not setting up automatic payment reminders—money gets forgotten. Configure reminders at 3, 7, and 14 days overdue minimum.
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Ignoring payment processing fees when comparing options—a 'cheaper' tool with higher processing fees costs more at volume.
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Using generic, unbranded invoices—professional branding with your logo increases perceived legitimacy and payment speed.
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Waiting to invoice—invoice immediately upon delivery. Every day of delay statistically increases payment time.
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Not tracking time accurately before invoicing—rounding errors and forgotten work add up. Track as you go.
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Making payment difficult—every extra step reduces payment rate. Offer multiple easy payment options.
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Ignoring invoice terms—unclear payment terms lead to confusion. State Net 15/30 explicitly and enforce consistently.
Expert Tips
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Set up automated payment reminders immediately—configure polite reminders at 3 days, 7 days, and 14 days overdue. This alone significantly improves cash flow.
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Accept multiple payment methods—credit cards, ACH/bank transfer, and PayPal each have advocates. Offering choices removes friction.
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Invoice the same day you complete work—delays signal that payment isn't urgent. Professional businesses invoice promptly.
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Use recurring invoices for retainer clients—automatic invoicing eliminates monthly busywork and ensures consistent billing.
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Keep invoices simple and scannable—busy clients skim invoices. Make the total, due date, and payment button immediately visible.
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Offer small discounts for early payment—'2% off if paid within 10 days' can significantly accelerate cash flow for some clients.
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Review outstanding invoices weekly—catching overdue invoices early prevents them from becoming collection problems.
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Separate invoicing from accounting if needed—you can use FreshBooks for invoicing and Wave for accounting. Use the right tool for each job.
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Save invoice templates for common projects—reduce creation time by templating recurring project types.
Red Flags to Watch For
- !Wave's payment processing fee is 2.9% + $0.60 per transaction — that's $0.30 higher per transaction than standard; on 100 invoices/month, that's $30 extra vs competitors
- !QuickBooks raises prices after the first year — introductory pricing is often 50% off; budget for full-price renewal ($30-80/mo) not the discounted rate
- !FreshBooks charges per client on lower tiers — Lite (5 clients), Plus (50 clients); growing past tier limits forces expensive upgrades; Wave has no client limits
- !Stripe Invoicing adds 0.4-0.5% on top of standard Stripe processing fees — on a $10,000 invoice, that's $40-50 extra; calculate this for high-value invoicing
- !Any invoicing tool that doesn't offer ACH/bank transfer — ACH processing is typically 1% vs 2.9% for credit cards; for large invoices, the savings are significant
The Bottom Line
FreshBooks leads for freelancers and service businesses with its combination of beautiful invoices and integrated time tracking. Wave is the clear choice if you want capable invoicing and accounting for free. QuickBooks Online makes sense for established businesses needing full accounting from industry-standard software. Stripe Invoicing is the obvious pick if you're already using Stripe. Zoho Invoice offers excellent value within the Zoho ecosystem, and Xero excels for growing businesses wanting modern cloud accounting.
Frequently Asked Questions
Is Wave really completely free?
Yes—Wave's core invoicing and accounting features are genuinely free with no hidden catches or upgrade walls. They make money through optional payment processing (2.9% + $0.60 per transaction) and payroll services. If you don't use those, you pay nothing. It's a legitimate business model used successfully for years.
What payment processing fees should I expect?
Standard credit card processing is 2.9% + $0.30 per transaction across most platforms. Bank transfers (ACH) are typically 1% or less. Some platforms add fees on top of processor fees—Stripe Invoicing adds 0.4-0.5%, for example. For high-volume invoicing, negotiate rates with your processor. These fees are a cost of doing business but compare to check processing time and potential losses.
Do I need invoicing software or can I just use PayPal invoices?
PayPal invoicing works fine for occasional, simple invoicing. But dedicated software adds significant value: automatic reminders (PayPal doesn't follow up), better tracking dashboards, recurring invoices, time tracking integration, expense management, and professional branding. Upgrade when you're sending more than 5-10 invoices monthly or when PayPal's limitations cause friction.
Should I choose invoicing-only or full accounting software?
If you have an accountant, use simple spreadsheets for expenses, or have another accounting system, invoicing-only tools (Stripe, Harvest, Zoho Invoice free tier) are sufficient. If you want to track expenses, run financial reports, prepare tax information, and see full business picture in one place, choose integrated accounting (Wave free, QuickBooks, Xero, FreshBooks). Consider future needs—migrating later is painful.
How do recurring invoices work?
You set up an invoice template with amount, line items, and client details, then configure a schedule (weekly, monthly, quarterly, custom). The system automatically generates and sends invoices on schedule. Some tools auto-charge saved payment methods; others just send invoices for client payment. This is essential for retainers, subscriptions, and maintenance contracts.
What's the difference between Net 15, Net 30, and Due on Receipt?
These are payment terms indicating when payment is expected. 'Net 30' means due within 30 days of invoice date—standard for B2B. 'Net 15' gives 15 days. 'Due on Receipt' means pay immediately. Shorter terms improve cash flow but may not suit all client relationships. Be explicit about terms on every invoice and enforce them consistently.
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