Invoicing software is bought to solve a document problem and kept to solve a cash flow problem. The invoice itself is trivial — any of these will produce one. What separates them is how quickly you get paid, and that comes down to two things almost nobody compares: how easy it is for the client to pay, and whether chasing happens automatically.
Below are ten options, what each is genuinely good at, and the two questions that should decide it.
Decide These Two Things First
Do you need accounting, or just invoicing? If you need a profit and loss statement, VAT returns and a bank reconciliation, you need accounting software with invoicing inside it. If your accountant handles the books and you just need to bill clients, dedicated invoicing is cheaper and simpler.
Buying standalone invoicing and then adding accounting later means moving your invoice history, which is avoidable.
How do your clients want to pay? Card, bank transfer, direct debit, or a purchase order and a cheque. This decides more than the feature list — an invoice with a card payment link gets paid faster than one asking for a bank transfer, but card fees on a large B2B invoice are real money. Direct debit is usually the cheapest for recurring work.
The Ten
1. Xero
Full accounting with strong invoicing. Documented features include recurring invoices, automated payment reminders, quotes converting to invoices, and multi-currency on higher plans.
Unlimited users on all plans is unusual and matters if a bookkeeper and accountant both need access.
Suits: businesses that need real accounting. Watch: entry tier caps how many invoices you can send monthly.
2. QuickBooks Online
The most widely used in the US, which has a practical benefit: almost any accountant can work with it. Invoicing is solid, with reminders, recurring invoices and progress invoicing.
Suits: US businesses, and anyone whose accountant already uses it. Watch: users are charged by tier.
3. FreshBooks
Built around invoicing and time tracking rather than double-entry bookkeeping first. If you bill by the hour, the timer-to-invoice flow is the smoothest here.
Suits: consultants, agencies, freelancers billing time. Watch: reporting depth is lighter; check it satisfies your accountant. Billable client counts are capped by tier.
4. Zoho Invoice
Notable because Zoho has offered Zoho Invoice free for small businesses — genuinely free, not a limited trial. If invoicing is all you need, this is often the answer.
Suits: small businesses wanting capable invoicing at no cost. Watch: verify current terms and limits, as free offerings change.
5. Wave
Core accounting and invoicing have historically been free, with revenue from payment processing and payroll.
Suits: sole traders and very small businesses. Watch: Wave’s free offering has changed over time — confirm what is still included.
6. Invoice Ninja
Open source, with a hosted option and a self-hosted version you run yourself. Full featured — recurring invoices, client portal, expense tracking, time tracking.
Suits: technical users wanting control and no per-seat cost. Watch: self-hosting means you own updates, backups and uptime.
7. Stripe Invoicing
If you already take card payments through Stripe, invoicing is built in and the payment experience is the smoothest available — the client clicks and pays with stored details.
Suits: businesses already on Stripe billing internationally. Watch: it is a billing tool, not accounting. You still need books.
8. Bonsai
Aimed at freelancers, bundling proposals, contracts, invoicing and time tracking. The contract-to-invoice flow is genuinely useful for solo consultants.
Suits: freelancers wanting one tool from proposal to payment.
9. Sage Business Cloud Accounting
Established, particularly in the UK, with strong compliance credentials and Making Tax Digital support.
Suits: UK businesses wanting a long-established name.
10. FreeAgent
UK-focused, popular with contractors and small limited companies, with Self Assessment and Corporation Tax support built in.
Suits: UK contractors. Watch: some UK banks include FreeAgent free with a business account, which changes the maths entirely — check before paying.
How They Compare
| Product | Full accounting | Best for | Notable |
|---|---|---|---|
| Xero | Yes | Businesses needing real books | Unlimited users |
| QuickBooks Online | Yes | US, accountant familiarity | Widest US adoption |
| FreshBooks | Partial | Time-based billing | Best timer-to-invoice flow |
| Zoho Invoice | No | Free capable invoicing | Free for small businesses |
| Wave | Basic | Sole traders | Historically free core |
| Invoice Ninja | Partial | Self-hosting, control | Open source |
| Stripe Invoicing | No | Existing Stripe users | Smoothest payment |
| Bonsai | Partial | Freelancers | Proposal to payment |
| Sage | Yes | UK compliance | MTD support |
| FreeAgent | Yes | UK contractors | May be free via your bank |
Pricing changes regularly and most plans cap invoices, clients or users by tier. Verify current pricing and — more importantly — current limits directly with each vendor.
The Features That Actually Get You Paid
Automated payment reminders. The highest-value feature in this entire category, and frequently switched off by default. Set reminders before the due date, on it, and at intervals after. It removes the awkward conversation and it works.
A payment link on the invoice. Clients paying by card or direct debit from the invoice itself pay materially faster than those asked to make a manual transfer.
Clear payment terms on the document. “Net 30” means nothing to many small clients. “Due by 14 September” is unambiguous.
Recurring invoices. If you bill the same amount monthly, this should be automatic. Manual recurring billing is where revenue quietly gets missed.
A client portal. Clients seeing their invoice history and paying without emailing you for a copy removes a surprising amount of admin.
Late Payment: Know Your Rights
Worth knowing because most small businesses do not use it.
In the UK, the Late Payment of Commercial Debts legislation entitles businesses to charge statutory interest and a fixed recovery cost on overdue commercial invoices. The EU Late Payment Directive provides comparable rights across member states. Many US states have prompt payment legislation, particularly for construction and public contracts.
You do not have to charge it. Stating on the invoice that statutory interest applies to overdue amounts changes payment behaviour on its own, and costs nothing. Check the rules for your jurisdiction and contract type.
Common Mistakes to Avoid
- Not switching on automatic reminders. The single highest-impact setting, and commonly left off.
- Buying standalone invoicing then needing accounting. Moving invoice history later is avoidable friction. Decide up front.
- Ignoring invoice caps on entry tiers. Several plans limit monthly invoices or billable clients. Check against your real volume.
- Offering only bank transfer. Adding a payment link speeds collection, and card fees are usually cheaper than 30 extra days of waiting.
- Vague payment terms. Use a date, not a term of art.
- Not checking whether your bank includes it. Some UK banks bundle FreeAgent free.
- Forgetting invoice numbering rules. Most jurisdictions require sequential, unique invoice numbers. Do not restart your sequence when switching software.
- No backup of issued invoices. You must retain them for years. Export periodically rather than relying on an active subscription.
FAQs
What is the best free invoicing software?
Zoho Invoice has been genuinely free for small businesses, and Wave’s core invoicing has historically been free. Both are capable rather than crippled. Verify current terms, as free offerings change.
Do I need accounting software or just invoicing?
If you need a profit and loss statement, tax returns and bank reconciliation, you need accounting software. If your accountant handles the books and you only bill clients, dedicated invoicing is cheaper and simpler.
Can I charge interest on late invoices?
In many jurisdictions yes — the UK’s Late Payment of Commercial Debts legislation and the EU Late Payment Directive both provide statutory rights on commercial debts, and several US states have prompt payment laws. Check your jurisdiction and contract. Stating that interest applies often improves payment without you ever charging it.
Should I accept card payments on invoices?
Usually yes for smaller invoices — faster payment generally outweighs the processing fee. For large B2B invoices, the percentage fee can be significant, so bank transfer or direct debit is often better. Offering both and letting the client choose works well.
What has to be on an invoice legally?
Requirements vary by country but commonly include a unique sequential number, your business name and address, the client’s details, the date, a description of goods or services, the amount, and tax registration numbers and tax breakdown where applicable. Check your jurisdiction’s specific requirements.
How long must I keep invoices?
Typically six years in the UK, generally seven in the US, and five to seven in Australia and Canada depending on circumstances. That obligation is yours, not your software vendor’s — export before cancelling any subscription.
Key Takeaways
- Decide whether you need accounting or only invoicing before you buy anything.
- Automated payment reminders are the highest-value feature and are often switched off by default.
- A payment link on the invoice gets you paid faster than asking for a transfer.
- Check invoice and client caps on entry tiers against your real volume.
- Never restart your invoice numbering sequence when changing software.
Before You Choose
Count how many invoices you sent last quarter and ask your accountant whether they need to see your books directly. Those two answers eliminate most of this list.
For the fuller picture, see our guides to the best accounting software, which trials are worth taking, and e-signature software for getting contracts signed before you invoice.