Running a small business coms with a multitude of tasks, and one of the most critical aspects is managing your finances effectively. Invoicing is a fundamental part of this process, as it ensures you get paid for the products or services you provide.
However, creating and managing invoices manually can be both time-consuming and prone to errors. This is where invoicing tools come to the rescue. In this article, we’ll explore the best invoicing tools available for small businesses, helping you streamline your invoicing process.
The Importance of Invoicing for Small Business
Before delving into the best invoicing tool, it is necessary to understand why invoicing is so crucial for small businesses.
- Cash Flow Management: Invoices act as a bridge between the products or services you provide and the revenue you receive. Efficient invoicing ensures a steady cash flow and allows you to meet your financial obligations.
- Professionalism: Well-designed invoices convey professionalism and reliability, which enhances your brand image and helps foster trusts with clients.
- Tracking Payments: Invoices serve as a record of the products or services delivered and the payments received. This record-maintenance is useful for tracking outstanding payments and settling disputes, in case they occur.
- Compliance: Many countries have certain legal requirements for invoicing, that includes specific information that must be included in the invoice. Using invoicing tools can help you stay compliant with these regulations.
Now that we have an overview of the importance of invoicing, let’s explore the best invoicing tools for small businesses.
8 Best Invoicing Tools for Small Businesses
The best invoicing tools are-
FreshBooks is a cloud-based invoicing software designed specifically for freelancers and small businesses. It has a user-friendly interface and a range of features, making it one of the top choices for invoicing software. Additionally, this platform also has an invoice generator that lets you add your brand’s logo when generating professional looking invoices for free.
- Invoice Customization: FreshBooks allows you to customize your invoices with your company’s branding, making it look professional and personalized.
- Time Tracking: FreshBooks includes time tracking features, making it ideal for service-based businesses that bills clients on hourly rates.
- Expense Tracking: You can easily track expenses and attach them to invoices, ensuring accurate billing.
- Client Portal: FreshBooks provides a client portal where your clients can view the invoices, track their payments, and communicate with you.
- Late Payment Reminders: This software can automatically send late payment reminders, ensuring you get paid on time.
- Integration: It integrates seamlessly with various payment gateways and other tools such as PayPal, Stripe, and Trello.
- Invoice Generator – Free
- Lite – $8.50 per month
- Plus – $15.00 per month
- Premium – $27.50 per month
- Select – Talk to a specialist and customize your plan
QuicBooks is a well-known name in the world of accounting and financial management. QuickBooks lets you create professional invoices, customize them to match your branding, and send them directly to your clients. It offers both desktop and online versions, catering to different business needs. However, the learning curve may be steeper for users who are new to accounting software.
- Versatility: QuickBooks is a versatile platform suitable for various business needs such as invoicing, accounting, payroll, and more.
- Automation: QuickBooks automates many financial processes, saving you time and reducing the risk of manual errors.
- Tax Support: With built-in tax support, QuickBooks can help you prepare for tax season, making it easy for filing your returns.
- Online Payment Otions: You can enable online payment options such as credit cards and bank transfers, so that clients can pay you conveniently.
- Reports and Analytics: QuickBooks provides detailed reports and analytics, helping you gain insights into your financial performance.
- Single User – $25
- Multiple Users – $50 to $180 per month (with add-on features)
Zoho invoice is a part of the Zoho suite of business software, specifically designed for freelancers and small businesses. It offers a range of invoicing and payment features such as customizable invoice templates, recurring invoices, and online payment processing to streamline your financial operations.
- Time & Expense Tracking: Zoho invoice lets you track time and expenses for accurate billing.
- Multi-Currency Support: If you deal with international clients, Zoho invoice supports multiple currencies and languages.
- Client Portal: Your clients can access a portal to view and pay invoices, reducing the back-and-forth communication.
- Affordability: Zoho invoice is known for its affordability, making it a good choice for small businesses tha are on a budget.
- Automation: Zoho invoice offers automation for recurring invoices, payment reminders,and follow-ups.
Invoicera is a cloud-based invoicing and billing software that caters to freelancers and small buinesses. It is known for its robust reporting and analytics, providing businesses with insights into their financial health.
- Expense Management: Invoicera offers robust expense management features, allowing you to track and categorize your expenses effortlessly.
- Customization: This tool lets you customize your invoices to match your brand and businesses needs, ensuring a professional appearing invoice.
- Multi-Currency & Multi-Language Support: If your business operates globally, Invoicera supports multiple currencies and languages for smooth transaction and communication.
- Subscription Billing: It’s ideal for businesses that rely on subscription-based revenue models, with recurring billing options.
- Time Tracking: Invoicera includes time-tracking features, making it suitable for service-based business.
- Starter – $19.00 per month
- Business – $49.00 per month
- Enterprise – $99.00 per month
- Infinite – $149 per month
Xero is another cloud-based accouting software that offers invoicing features tailored to small businesses. It is known for its scalability and ease of use.
- Customizable Invoices: Xero provides customizable invoice templates, allowing you to maintain a consistent brand identity.
- Expense Tracking: You can easily track expenses and include them in your invoices using this invoicing tool.
- Online Payment Options: You can enable online payment options to make it convenient for clients to pay you.
- Integration: Xero integrates seamlessly with hundreds of third-party apps, expanding its functionality.
- Bank Reconciliation: Xero automates bank reconciliation, making it easier to keep your financial records accurate.
Early – $3.25 per month
Growing – $9.25 per month
Established – $17.50 per month
Square is well-known for its point-of-sales (POS) systems, but also offers invoicing tool for small businesses. This tool lets you create and send professional invoices online or via email.
- Integration with Square POS: If you already use Square for in-person sales, their invoicing tool seamlessly integrates with your existing system.
- Simple Invoicing: Square proves a straightforward invoicing solution with customizable templates.
- Payment Processing: It facilitates easy online payments through Square’s payment processing system.
- Sales Analytics: You can access sales analytics and reporting to gain insights into your business performance.
- Affordability: Square’s pricing is competitive and transparent, with no monthly fees for its basic plan.
- Basic – Free
- Plus – $20 per month
Wave is a free invoicing and accounting software designed for freelancers, small business owners, and entrepreneurs. While it’s free to use, it offers robust invoicing features that can help you manage your finances effectively.
- Free Invoicing: As mentioned, Wave’s accounting tools are entirely free, making it a budget-friendly option for small businesses.
- Customizable Invoices: You can customize invoice templates with your logo and branding elements.
- Online Payments: Wave allows you to accept online payments, although it charges a transaction fee for this service.
- Receipt Scanning: You can scan and upload receipts directly into Wave for expense tracking.
- Basic Invoicing – Free
Invoice2go is a mobile-friendly invoicing and billing software that targets freelancers and small businesses. It is designed specifically to be simple and convenient for users on the go.
- Mobile App: Invoice2go offers a mobile app, allowing you to create and send invoices on the go, at your convenience.
- Invoice Templates: It provides a wide range of customizable invoice templates, making it easy to create professional invoices.
- Expense Tracking: You can track and manage your expense withing the platform and generate invoices accordingly.
- Time Tracking: Invoice2go includes time tracking capabilities, which are beneficial for business that charge their clients by the hour.
- Payment Processing: It supports various payment methods, making it convenient for clients to pay invoices with ease.
- Starter – $5.99 per month
- Professional – $9.99 per month
- Premium – $39.99 per month
Invoicing is a crucial aspect of running a small business, and using the right invocing tools can make a significant difference in your financial management. Take time to evaluate your business requirements, test out different invoicing tools, and choose the one that aligns best with your business’s requirements.
Consider your specific requirements and take advantage of free trials to find the perfect invoicing software for your small business. Which above mentioned invoicing tool did you find effective?
Lauren Hoots is the Marketing Specialist at Hoots Accounting. She combines her passion for numbers and her flair for creative storytelling to make financial services engaging and accessible to clients. With a background in digital marketing and a deep understanding of the accounting industry, Lauren is dedicated to helping individuals and businesses navigate the financial landscape with clarity.