Short answer: FreshBooks is the best invoicing software for a small business in 2026 when the owner sends the client bill and wants light books in the same login. Lite lists at $23/mo for 5 clients, and Plus is $43/mo when proposals and retainers belong on that bill. Wave Starter charges no software fee for unlimited invoices, and Pro is $19/mo when automatic reminders matter. QuickBooks Online Simple Start is $38/mo when the accountant will only sign that US file, and Plus is $140/mo when goods have to sit on the invoice. Zoho Invoice stays free inside a 500-invoice year.
Pick the bill an owner can send this week, then check the client cap and the card fee before the renewal.
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FreshBooks is the invoice a small-business owner should open first, because the client list, the estimate, and a light set of books share one login. A shop whose preparer already lives in QuickBooks should price that file before a second subscription, or the bill gets typed twice at year end. A business that only needs the document, and can tolerate a hard cap, should price Wave or Zoho Invoice before it pays for a ledger it will not close.
Toolradar data: the invoicing catalog lists 255 tools, 8 of them free and 79 freemium (34% free or freemium combined), with 163 paid only (64%).
A free screen still fails a busy owner when the cap is clients, projects, or invoices in a year, because the block shows up on the day the bill is already late. This ranking is for the person who sends the bill, often from the same desk that buys supplies and pays the sales tax. Companies that invoice other businesses on terms belong in invoicing software for B2B companies. A practice that sells time or a retainer belongs in invoicing software for consultants. A studio that bills utilization belongs in invoicing software for agencies, and job draws belong in invoicing software for contractors.
How we chose: these 10 were ordered for that owner-sent bill, out of the 255 tools in the invoicing catalog. Every price below was checked on the vendor's own site in September 2026. The scoring method is on how we rate.
Top Picks
Picked by editorial review, informed by G2 and Capterra review volume and rating and by media mentions, the signals behind our category rankings. How we rate
The client bill for an owner who also wants light books in the same login.
Starting price
Lite $23/mo
4.5 (5,507 reviews)
Best for
Service owners who bill a client list and want estimates in the same account.
Unlimited invoices with no software fee, and reminders only after you pay for Pro.
Starting price
Pro $19/mo
4.3 (2,059 reviews)
Best for
Owners who want unlimited invoices before paying a software fee.
The US file when the customer invoice has to post where the accountant already works.
Starting price
Free, then $38/mo
4.4 (405 reviews)
Best for
Shops whose accountant will only close the year in QuickBooks.
| Tool | Starting price | Rating | Best for |
|---|---|---|---|
| FreshBooks Visit | Lite $23/mo | 4.5 5,507 reviews | Service owners who bill a client list and want estimates in the same account. |
| Wave | Pro $19/mo | 4.3 2,059 reviews | Owners who want unlimited invoices before paying a software fee. |
| QuickBooks Online | Free, then $38/mo | 4.4 405 reviews | Shops whose accountant will only close the year in QuickBooks. |
| Xero Visit | Growing $55/mo | 4.4 5,158 reviews | Teams that need more than 20 invoices a month and do not want per-person fees. |
| Zoho Invoice | $0 | 4.7 1,188 reviews | Owners who can stay inside 500 invoices, 3 projects, and 2 users. |
| Square Invoices | Free, then Plus $49/mo | 4.6 1,211 reviews | Shops that already take Square cards and also email a bill. |
| HoneyBook | Starter $29/mo | 4.6 938 reviews | Client businesses that send a proposal and a contract before the invoice. |
| PayPal Invoicing | No software fee | 3.3 66,452 reviews | Owners whose customers already pay PayPal or a card, without another subscription. |
| Invoice2go | From $7.99/mo | 4.3 364 reviews | Phone-first owners who can live inside a yearly invoice cap. |
| Invoice Ninja | Free, Pro $14/mo | 4.4 193 reviews | Owners inside a small client cap who want unlimited invoices at no software fee. |
- Starting price
- Lite $23/mo
- Free plan
- No
- Rating
- 4.5 (5,507 reviews)
Best for: Service owners who bill a client list and want estimates in the same account.
- Pro: Lite covers 5 billable clients, Plus covers 50, and Premium removes the cap, so a long archived list already needs the next plan.
- Pro: Proposals, retainers, deposits, and late reminders are named from Plus upward, so Lite cannot hold a repeating service bill.
- Pro: Premium adds project profitability and phone support, with team members at $11/mo each, after a 30-day trial and a refund inside 30 days of purchase.
- Con: The checkout shows a first-year Lite offer and short intros on Plus and Premium, so the renewal is the list rate in the table, not the banner.
- Con: Select publishes no list price. Extra people are an add-on, and leaving the file can start at FreshBooks alternatives.
FreshBooks' pricing is fair for small businesses, though it can become expensive as client numbers grow.
Watch out
Potential for add-on service costs
Wave
Unlimited invoices with no software fee, and reminders only after you pay for Pro.
- 4.4 on Capterra (1,730 reviews)
- 4.3 on G2 (328 reviews)
- 3.2 on SourceForge (1 reviews)
- Starting price
- Pro $19/mo
- Free plan
- Yes
- Rating
- 4.3 (2,059 reviews)
Best for: Owners who want unlimited invoices before paying a software fee.
- Pro: Starter includes unlimited estimates, invoices, and bills, with a mobile app, and the software line stays at nothing.
- Pro: Pro adds automatic reminders, receipt capture, and bank import through Plaid, billed per business rather than per owner, so a second company is another subscription.
- Pro: Pro card payments drop the fixed fee on the first 10 transactions in the month, then the Starter fixed fee returns.
- Con: Online payments need a separate approval, so a new account can send bills and still be unable to take the card.
- Con: Wave Advisors, with a dedicated bookkeeper, starts at $149/mo and includes the Pro features, which is a different product from the invoice.
Wave's Starter tier is incredibly generous, offering unlimited invoicing and bookkeeping for free, which is rare in the market.
QuickBooks Online
The US file when the customer invoice has to post where the accountant already works.
- 4.4 on G2 (405 reviews)
- Starting price
- Free, then $38/mo
- Free plan
- Yes
- Rating
- 4.4 (405 reviews)
Best for: Shops whose accountant will only close the year in QuickBooks.
- Pro: Simple Start, Essentials, Plus, and Advanced are the US list, with 1, 3, 5, and 25 billable users, so headcount is what moves you up.
- Pro: Essentials invoices for time and tracks what customers and suppliers owe, at 3 users, which is the service seat before a shop sells goods.
- Pro: Plus and Advanced add inventory and project profitability, and the first three plans each include 2 accountant firms.
- Con: A new order shows 50% off for 3 months beside every list rate, so the renewal is the higher figure, not the discount.
- Con: Inventory is a $40/mo add-on on Simple Start and Essentials, and it is included on Plus and Advanced. If the open question is leaving that file, start from QuickBooks alternatives.
The 50% introductory discount masks steep renewal prices, and the optional payroll add-on is priced separately and pushes real costs above the listed prices.
Watch out
Payroll is an optional add-on priced separately, not included in any plan
- Starting price
- Growing $55/mo
- Free plan
- No
- Rating
- 4.4 (5,158 reviews)
Best for: Teams that need more than 20 invoices a month and do not want per-person fees.
- Pro: Growing removes Early's invoice cap and adds auto-reconcile, with no per-user license fee on any plan, so a bookkeeper's login does not raise the bill.
- Pro: Sales tax, quotes, and online invoice payments are on Early as well, so a tiny volume can stay on the cheap file.
- Pro: Established adds multiple currencies, projects, and a 180-day cash forecast, so a second currency or job costing is what forces that plan.
- Con: The US list becomes $27, $59, and $97 on October 1, 2026, and the 90% new-organization offer ends the day before, so a September quote is not the renewal.
- Con: Early's 5-bill line and the missing project tools mean a job-cost shop has already outgrown the entry plan.
Watch out
Potential add-on costs for specific integrations
- Starting price
- $0
- Free plan
- Free to use
- Rating
- 4.7 (1,188 reviews)
Best for: Owners who can stay inside 500 invoices, 3 projects, and 2 users.
- Pro: The plan is free and includes quotes, recurring invoices, reminders, expenses, time, and a customer portal, so a repeating bill stays free while the caps hold.
- Pro: Two organizations can sit on one Zoho account, which covers a side business without a second subscription.
- Pro: Email and voice support are listed as free, and the product does not sell the data or run ads on the bill a customer sees.
- Con: A fourth project has nowhere to go on this product, so a job-based shop leaves when that job opens, with no paid tier waiting.
- Con: Documents keep a Powered by Zoho Invoice line, and 180 days of inactivity can delete the file in the following 20 days, which can wipe a seasonal shop's history.
Zoho Invoice offers an incredibly generous pricing model by being completely free for all its features.
Watch out
No overage fees or seat minimums.
Square Invoices
The invoice for a shop that already takes Square cards at the counter.
- 4.6 on G2 (1,211 reviews)
- Starting price
- Free, then Plus $49/mo
- Free plan
- Yes
- Rating
- 4.6 (1,211 reviews)
Best for: Shops that already take Square cards and also email a bill.
- Pro: Free includes estimates, contracts, deposits, recurring invoices, and reminders, at no monthly fee per location.
- Pro: Customers can pay an invoice by card, Apple Pay, Google Pay, or ACH, and the next-day bank transfer is free.
- Pro: Square says payments can import into QuickBooks Online and Xero, so the close can stay in the file you already keep.
- Con: Plus is $49/mo per location to reach the lower invoice card rate, and Premium is the $149 location in the table, so a few bills may never earn that fee back.
- Con: Square does not support multi-currency acceptance, and invoice ACH on Free has a $1 minimum, so a foreign customer or a tiny ACH payment is a bad fit.
Square's pricing is generally fair, especially for small businesses.
- Starting price
- Starter $29/mo
- Free plan
- No
- Rating
- 4.6 (938 reviews)
Best for: Client businesses that send a proposal and a contract before the invoice.
- Pro: Starter includes unlimited clients, invoices, proposals, contracts, and a client portal, with a 30-day trial and no card required.
- Pro: Essentials adds the scheduler, automations, QuickBooks Online, and up to 2 team members, which is the plan a second person forces.
- Pro: Card fees start at 2.7% + 10¢ and bank transfer is 1.5%, with a 60-day money-back guarantee after you subscribe.
- Con: Premium, at $109/mo, is where unlimited teammates and multiple companies appear, so a growing staff does not stay on Starter.
- Con: Faster access to funds is a separate 1% fee, and the software is still a client system rather than the year-end ledger.
HoneyBook's pricing is fair for the all-in-one clientflow platform, with Starter at $29/month offering solid basics and Essentials at $49/month adding scheduling and automation, the best value for most users.
Watch out
1.5% per ACH bank transfer
PayPal Invoicing
The bill for customers who already pay with PayPal, with no software subscription.
- 1.5 on Trustpilot (37,000 reviews)
- 4.6 on Capterra (26,637 reviews)
- 4.4 on G2 (2,748 reviews)
- Starting price
- No software fee
- Rating
- 3.3 (66,452 reviews)
Best for: Owners whose customers already pay PayPal or a card, without another subscription.
- Pro: Creating and sending invoices is included with a PayPal account, and the customer does not need an account to pay, so the cost shows up only when the money moves.
- Pro: Pay Later is listed at 4.99% + $0.49, and PayPal says the business is paid in full while the customer splits the cost.
- Pro: Invoicing is listed in more than 200 markets and 24 currencies, which a domestic-only card tool will not match.
- Con: PayPal says 77% of its invoices are paid within one day, based on its data from August 2023 to July 2024, which is their figure, not a promise you can budget against.
- Con: There is no ledger and no client cap to grow into, and the wallet rate sits above the plain card rate, so a large invoice makes the fee the product.
PayPal does not sell a SaaS seat.
Watch out
International receiving adds 1.50% on top of the domestic commercial rate.
Invoice2go
A phone-first invoice with a yearly cap, and a starting line rather than a price on each card.
- Starting price
- From $7.99/mo
- Free plan
- No
- Rating
- 4.3 (364 reviews)
Best for: Phone-first owners who can live inside a yearly invoice cap.
- Pro: Plans open at the starting price in the table, with unlimited clients and unlimited teammates on every plan, so headcount does not push you up.
- Pro: Bank transfer is free on Starter, Professional, and Premium, and PayPal payments add a percentage plus a fixed fee, so the free transfer is the cheaper rail.
- Pro: Professional and Premium add QuickBooks and Xero, and the trial is 30 days if you cancel before the subscription fee.
- Con: Invoice2go publishes no list price for Professional or Premium, so the starting line is not the renewal you can budget.
- Con: Recurring invoices and phone support are Premium only, and the included bank account is a separate product from the books a preparer signs.
Invoice2go's pricing is currently unclear as all tiers are listed as 'Try it free' without actual monthly costs, making a direct fairness assessment impossible.
Watch out
Card payment fees (3.5% to 2.9%)
Invoice Ninja
A free client file with unlimited invoices and a gateway you already have.
- 4.7 on Capterra (167 reviews)
- 4.3 on G2 (22 reviews)
- 3.5 on SourceForge (4 reviews)
- Starting price
- Free, Pro $14/mo
- Free plan
- Yes
- Rating
- 4.4 (193 reviews)
Best for: Owners inside a small client cap who want unlimited invoices at no software fee.
- Pro: Free includes unlimited invoices, recurring billing, deposits, and a client portal inside the free client cap, which blocks the next name past that cap.
- Pro: Pro removes the client cap and the Created by Invoice Ninja line, and annual billing is $140, described as 2 months free.
- Pro: Clients pay through a gateway you connect, including Stripe, PayPal, or Square, so the card fee lives at that gateway.
- Con: Automatic reminders, the API, and US sales-tax calculation are Pro, so the free plan will not chase a late bill or compute the state rate.
- Con: Enterprise starts at $18/mo for 1 to 2 users, so a second login leaves Pro.
Invoice Ninja offers a very generous Free tier, making it highly accessible for freelancers and small businesses with limited client bases.
What small-business invoicing software is
Small-business invoicing software creates the bill, tracks what is unpaid, and gives the customer a way to pay, without an accounts-receivable department. A checkout page collects money at the counter. This category is the document the customer still owes after the work is done.
The ten products do three different jobs, and mixing them up means paying for two systems. FreshBooks, Wave, and Zoho Invoice are the bill itself, with a lighter close, which fits an owner with a short client list. QuickBooks and Xero are the bill and the ledger together, which is what a US preparer usually wants to sign, so a second invoice tool means typing the sale twice.
Square, PayPal, and Invoice2go collect the money and can push the result toward a ledger, which fits a shop that already takes cards and is the wrong buy if the customer still mails a check. HoneyBook wraps the bill in a proposal and a contract, so it suits a sale that starts with a signature. Invoice Ninja is a free client file you connect to a gateway you already have, which suits a tiny roster and fails when the software has to chase the late bill. A full profit and loss, with payroll and a year-end package, is a different purchase, covered in accounting software for small business. Supplier bills, rather than customer invoices, sit in accounts payable software for small business.
Why the cheap plan often cannot send the bill you actually use
The costly miss is buying the entry plan and finding the feature on the next card. FreshBooks names proposals and retainers on Plus, so a service owner on Lite can email an invoice and still cannot hold client money.
Xero Early lists 20 invoices and 5 bills, and Xero asks how many invoices you send each month, so a weekly biller leaves that plan in the first weeks. Zoho Invoice publishes no paid tier after the user, project, and yearly caps, so outgrowing the free file means leaving. QuickBooks puts inventory tracking on Plus and Advanced, so a product shop on Simple Start cannot put stock on the bill.
The second login is priced differently on every product, and that line is what changes the quote. Xero charges no license per person, so a bookkeeper can share the file without a new line. FreshBooks prices the account, then each extra teammate at $11/mo on Lite, Plus, and Premium, so a two-person shop pays that add-on on any of them.
HoneyBook Starter has no teammates, Essentials stops at 2, and Premium is the unlimited team, so the first hire is a plan change. Invoice Ninja Pro is one login, and extra users start on Enterprise. Square prices the location, not the person, which helps a two-person counter and costs more at a second shop.
The card fee is a second bill, and a large invoice is where that fee beats the software. FreshBooks Payments adds $0.30 to its card rate, and the bank transfer costs less than the card, so collection on a big bill can exceed the subscription. Wave Starter lists cards at 2.9% + $0.60, with Amex at 3.4% + $0.60, and Pro drops the fixed fee on the first 10 card payments in the month, which only helps inside that count.
Square Free lists 3.3% + 30¢ on a card paid through an invoice, and paid plans take a lower percentage with the same fixed fee, so only a few large invoices earn the location fee back. PayPal charges a published card rate, a higher wallet rate, and a capped bank payment, which makes the fee the product when the customer pays from the wallet. A shop that still has to pick the books should read QuickBooks vs Xero before it treats a pay link as the close.
Key Features to Look For
A due date the customer can see (Essential)
An owner needs a due date and a reminder, not a checkout button. FreshBooks Plus adds retainers, Wave Pro schedules reminders at 3, 7, and 14 days past due, and Zoho Invoice includes recurring invoices on the free plan.
The cap written on that plan (Essential)
Archived FreshBooks clients still occupy a slot until you delete them, so an old name can block the next job. Zoho Invoice stops at a yearly ceiling, Invoice2go Starter stops at 30 invoices a year on yearly billing (2 a month on monthly) and Professional at 100 (5 a month), and Invoice Ninja's free plan stops at a client ceiling.
A way for the customer to pay the document (Essential)
FreshBooks, Wave, Square, HoneyBook, and PayPal publish a card or bank rate, so the subscription is not the cost of getting paid. Zoho Invoice and Invoice Ninja leave the fee to the gateway you connect, which suits an owner who already has a processor.
A second person in the file (Essential)
Xero does not bill a license per person, so extra logins are not a line item. HoneyBook Essentials includes up to 2 team members, FreshBooks charges $11/mo for each team member on Lite, Plus, and Premium, and Invoice Ninja waits until Enterprise for another login.
A named path into the books (Important)
HoneyBook puts QuickBooks Online on Essentials, not Starter, so the cheap seat cannot hand the sale to the accountant. Invoice2go puts QuickBooks and Xero on Professional and Premium, and Square says payments can import into both, so the preparer does not retype the sale.
Sales tax on the line, or an honest no (Important)
Xero lists sales tax on Early, Growing, and Established, so a small file can still put tax on the line. Invoice Ninja Pro adds automatic sales tax for US states, and Zoho Invoice says it can create tax-compliant invoices, which a product shop should confirm before the first bill.
The renewal, not the banner (Nice to have)
FreshBooks is showing a first-year Lite offer and short Plus and Premium intros under the list rates, so the banner is not the renewal. Xero's 90% offer for a first US organization ends September 30, 2026, and the US list rises on October 1, 2026. QuickBooks shows 50% off for 3 months beside each list rate, so budget the month after that discount.
What to decide before the trial
-
If the accountant will only sign QuickBooks, price Simple Start for a service bill and Plus when goods have to sit on the invoice, because inventory tracking is not on the lower plans.
-
When more than one person needs the file and you bill in one currency, start on Xero Growing, and move to Established only for a second currency or for projects, since logins are not billed as seats.
-
If last year stayed inside Zoho Invoice's user, project, and yearly caps, the file can stay free. Passing any of those caps means leaving, because Zoho Invoice publishes no upgrade.
-
If customers already pay on Square, price the Free invoice card rate against Plus before you add another subscription, because the location fee has to earn back the lower percentage.
-
If the sale starts as a proposal and you work alone, HoneyBook Starter includes the invoice, the proposal, and the contract. A second person, or QuickBooks, moves you to Essentials.
Evaluation Checklist
On FreshBooks, tally active and archived clients against Lite or Plus, because only a delete frees the slot, and check that retainers appear on the tier in the cart before you pay.
On Wave, decide whether reminders and bank import matter before you stay on Starter, because both sit on Pro, and online payments still need a separate approval.
On QuickBooks, confirm Plus or Advanced if you track stock. A lower plan sends a bill that cannot carry the goods, unless you add inventory, which Intuit prices at $40/mo on Simple Start and Essentials.
On Xero, count next month's bills against Early's 20-invoice line, and note September 30, 2026 before you take the intro, because October 1 is a higher US list.
On Zoho Invoice, check the last 12 months of bills against the yearly ceiling and live jobs against the project cap. There is no higher plan for a fourth project, and 180 idle days can put the history at risk.
On Square, check that every customer pays in one currency, since multi-currency acceptance is unsupported, and then weigh the Free card percentage against the Plus location fee.
On HoneyBook, pick Starter or Essentials before the first invite goes out. Teammates and QuickBooks start on Essentials, and that plan stops at two people.
On PayPal, add the card rate and the wallet rate on one real invoice, because sending the invoice is included and the fee is the whole price.
On Invoice2go, match your yearly invoice count to the Starter, Professional, or unlimited band before you trust the starting line, because recurring invoices sit on Premium only.
On Invoice Ninja, confirm the free client cap is enough, because branding removal, the API, and automatic reminders are Pro, and a second login is Enterprise.
Pricing Overview
The client invoice
FreshBooks Lite for a short client book, Plus once retainers begin, and Premium once the roster should have no ceiling.
Per account, monthly list
Invoice and the books
QuickBooks Simple Start for a service bill, Plus when stock has to sit on the invoice, and Xero Growing when people should not be seats.
Monthly list, per file
Free file, hard cap
Wave Starter for unlimited invoices, Zoho Invoice inside its yearly ceiling, and Invoice Ninja Free inside its client cap.
No software subscription
Pay on the rail you already use
Square when the shop already takes those cards, and PayPal when the customer already pays that wallet.
Percent of the paid invoice
Proposal, then the invoice
HoneyBook Starter when you work alone, and Essentials when a second person or QuickBooks shows up.
Per month
Pricing Comparison
| Tool | Published price | What that price buys | Billing |
|---|---|---|---|
$23/mo Lite | 5 clients. Plus is $43/mo for 50 clients, proposals, and retainers. Premium is $70/mo for unlimited clients. | Per account, monthly | |
Wave | Pro $19/mo | Reminders and a lower card fee on the first 10 payments. Starter has no software fee. Annual Pro is $190. | USD, per business |
QuickBooks | $38/mo Simple Start | Essentials is $85/mo for 3 users. Plus is $140/mo and adds inventory. Advanced is $340/mo for 25 users. | Monthly, US page |
Xero | $55/mo Growing | Invoices past Early's cap of 20. Established is $90/mo for currencies and projects. Early is $25/mo. No per-user fee. | USD, monthly |
$0 | 2 users, 3 projects, and 500 invoices a year, with branding on the document and no paid tier on the pricing page. | Free plan | |
Square | Free, then Plus $49/mo | Per location. Premium is $149/mo per location. Invoice cards are 3.3% + 30¢ on Free and 2.9% + 30¢ on paid plans. | Per location |
$29/mo Starter (yearly) | $36/mo billed monthly. Essentials is $49/mo yearly ($59 monthly) with QuickBooks and 2 teammates. Premium is $109/mo yearly ($129 monthly). | Per month | |
PayPal | No software fee | Cards are 2.99% + $0.49. The PayPal and Venmo wallet is 3.49% + $0.49. Pay by Bank is 1% with a $10 cap. | Per payment |
From $7.99/mo | Starter $7.99/mo at 3.5% cards, Professional $11.99/mo at 3%, Premium $44.99/mo at 2.9%. Yearly caps: 30 and 100 invoices. | Caps on the card | |
Pro $14/mo | Unlimited clients, against a free plan of 5. Annual Pro is $140. Enterprise starts at $18/mo for 1 to 2 users. | Monthly or yearly |
Prices checked on vendor sites on September 24, 2026. From October 1, 2026 the US Xero list is $27, $59, and $97. A first US organization can pay $2.50, $5.50, or $9 for six months if the purchase lands by September 30, 2026. On an invoice, Square ACH is 1% with a $1 floor on Free, and Plus and Premium add a $10 ceiling. FreshBooks team members are $11/mo, so the second person is a separate line on the renewal.
Mistakes to Avoid
- ×
Buying FreshBooks Lite because the banner is lower, then discovering retainers on the next plan, so the cheap seat never holds the repeating bill.
- ×
Treating Wave, Zoho Invoice, or PayPal as the year-end file. The books a preparer signs are still a second product, compared in QuickBooks vs Xero.
- ×
Archiving a FreshBooks client and assuming the slot is free. Only a delete opens the seat, so an old name can still block the next job.
- ×
Budgeting a FreshBooks intro, a QuickBooks three-month discount, or Xero's first-organization offer as the renewal. The list rate is what the next invoice costs.
- ×
Calling Zoho Invoice unlimited because the subscription is free misses the real caps, which are users, projects, and invoices per year, and passing any of them means leaving the product.
- ×
Inviting a second person on HoneyBook Starter or Invoice Ninja Pro. Neither plan includes that login, so the next tier is the one that does.
Expert Tips
- →
Send one real invoice to yourself during the trial, from estimate to pay link, because a demo that never bills hides the client cap.
- →
Put the card rate beside the subscription on a typical invoice and a large one. Square Free, PayPal, and FreshBooks change rank as the invoice grows.
- →
If anyone besides you will send the bill, price that person first. Xero does not charge for the login, and HoneyBook and Invoice Ninja do.
- →
Keep the accounting file you already pay for, and use this list for the bill. The wider ledger list is accounting software for small business.
- →
Write September 30, 2026 on a new Xero order. The US list changes the next day, and a second organization loses the multi-organization discount as that break phases out.
- →
If you might pass the yearly invoice ceiling or the project cap, do not park history in Zoho Invoice. A longer list of no-subscription options is the free invoicing software guide.
Red Flags to Watch For
-
FreshBooks Lite does not list retainers or proposals, and archived clients still occupy a slot, so a real client book has already outgrown the entry plan.
-
Xero Early is the wrong order for a weekly biller, because the invoice line stops at 20 and the bill line stops at 5.
-
Zoho Invoice is not an unlimited file, because users, projects, and invoices per year are the caps rather than revenue, and inactivity of 180 days can lead to deletion in the following 20 days.
-
QuickBooks Simple Start is the wrong order for a product shop, because inventory tracking starts on Plus and Advanced.
-
Invoice2go publishes no list price beside Professional or Premium, and a repeating bill sits on Premium only, so the starting line is not the renewal.
-
HoneyBook Starter cannot add a teammate, so a second person is an Essentials purchase, and the card fee still sits on every paid invoice.
The Bottom Line
FreshBooks Plus is the small-business invoice once the client list or a retainer outgrows Lite, because that plan can hold the deposit. Wave Pro is the step when you want reminders without buying a full ledger. QuickBooks Plus is the file when goods have to sit on the bill the accountant already signs. Xero Growing is the file when extra people should not be seats. Zoho Invoice and Invoice Ninja are the capped free documents, and both fail once the cap blocks a real client. Square and PayPal make the payment fee easier to see than a software seat. HoneyBook fits a sale that starts as a proposal. Invoice2go fits a phone and a yearly cap.
Cite this: Toolradar, "Best invoicing software for small business 2026", September 2026. Prices were read on vendor pages that month. The broader catalog is the invoicing software guide.
Frequently Asked Questions
What is the best invoicing software for a small business in 2026?
FreshBooks is the best fit for most small businesses in 2026 when the owner sends client invoices and wants light books in the same account: Lite while the roster is short, and Plus when proposals and retainers join the bill. Wave is the better start when the software fee should stay at nothing and the card fee is the price. QuickBooks Online is the better start when the accountant will only sign that file. Zoho Invoice is the better start inside the free yearly ceiling, and the wrong start if that ceiling is already close.
How much does invoicing software cost for a small business?
Published starting points in September 2026 put FreshBooks Lite and QuickBooks Simple Start at the monthly list rates in the comparison, Wave Pro at $19/mo with no software fee on Starter, and Xero Growing at $55/mo after Early. HoneyBook Starter is $29/mo billed yearly, or $36 month to month, for someone working alone. Invoice Ninja Pro is $14/mo, which removes the free client cap. Square and PayPal charge no software subscription and take a percentage when the invoice is paid, so a large bill can change which one is cheaper. Invoice2go publishes caps and card rates on the higher plans, and the only subscription dollar is the starting line in the table.
Is there a free invoicing tool a small business can actually use?
Yes, inside a cap a busy shop will hit. Zoho Invoice costs nothing for 2 users, 3 projects, and 500 invoices a year, and a fourth project means a different product. Wave Starter has no software fee for unlimited invoices, and reminders start on Pro, so the free file will not chase a late bill. Invoice Ninja is free inside a client cap with unlimited invoices, and automatic reminders start on Pro. Square Free has no monthly fee per location and charges its invoice card rate when a card pays. More no-subscription options are compared in the free invoicing software guide.
FreshBooks or QuickBooks for a small business?
FreshBooks is the better buy when the job is the client invoice, the estimate, and a short set of reports, and Plus is the plan that names retainers. QuickBooks is the better buy when the preparer will only sign that US file, with Simple Start for a service bill and Plus when inventory has to sit on the invoice. They are not substitutes once the accountant has chosen the ledger, because running both means paying two systems for one sale. The side-by-side of the two book files is QuickBooks vs Xero.
Do these tools replace accounting software?
No. FreshBooks can produce accounting reports from Plus upward, and Wave includes bookkeeping records on Starter, but a preparer who already closes in QuickBooks or Xero still wants that file. HoneyBook and Invoice2go sync toward QuickBooks only on the plan that names it, so the cheap seat can leave the accountant retyping. PayPal sends the bill and does not keep the books. The ledger comparison is accounting software for small business. Use this page for the bill the customer pays.
What fees does a customer payment add on top of the subscription?
FreshBooks Payments lists cards at 2.9% + $0.30 and a US bank transfer at 1%, so a large invoice can make processing bigger than the software. HoneyBook lists card fees from 2.7% + 10¢ and bank transfer at 1.5%. Square Free lists 3.3% + 30¢ on invoice cards, and paid plans use the lower percentage in the table, so the location fee has to earn that gap back. PayPal lists cards at 2.99% + $0.49, and Pay by Bank is capped at $10, which is the whole price because sending the invoice is included. Wave Starter adds a 60¢ fixed fee on the card rate, and Pro drops that fixed fee on the opening card payments of the month.
Can a two-person shop stay on the cheapest plan?
Sometimes. Xero does not charge a license per person, so Growing can hold both logins without a new line. FreshBooks adds each team member at $11/mo on Lite, Plus, and Premium, and only Select includes 2 team accounts. HoneyBook Essentials includes up to 2 team members, and Starter includes none, so the first hire leaves Starter. Invoice Ninja Pro does not add a login, so the second person is Enterprise. Square charges per location, not per person, which helps a two-person counter and hurts a second shop.
Cite this page: Toolradar, "Best Invoicing Software for Small Business in 2026", updated September 2026, https://toolradar.com/guides/best-invoicing-software-for-small-business
Sources
Prices and plan details on this page come from each vendor's own pricing page, re-checked by the Toolradar pricing tracker:
- FreshBooks pricing, checked
- Wave pricing, checked
- QuickBooks Online pricing, checked
- Xero pricing, checked
- Zoho Invoice pricing, checked
- Square Invoices pricing, checked
- HoneyBook pricing, checked
- PayPal Invoicing pricing, checked
- Invoice2go pricing, checked
- Invoice Ninja pricing, checked
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