7 Best Invoicing Software for Small Businesses in 2025

Managing invoices manually is time-consuming, prone to errors, and difficult to track as your client list grows. Many small businesses still rely on spreadsheets or Word documents, but these tools make it easy to miss due dates, send duplicate invoices, or lose payment information. 

In 2025, the best invoicing software for small business gives you a faster, more accurate way to manage billing with automation, recurring invoices, payment tracking, and real-time reminders. Modern tools help small business owners avoid mistakes, streamline the invoicing process, and stay organized across every project.

This guide will cover:

• why small businesses benefit from invoicing software
• essential features that matter in 2025
• the top invoicing tools (with features, pricing, pros, use cases)
• how to pick the best invoicing system for your business
• FAQs about invoicing tools

If you want to simplify your day-to-day admin, our invoicing software makes it easy to handle payments, keep records tidy, and send invoices in just a few clicks.

Why Small Businesses Need Invoicing Software

Manual billing often leads to late payments, inconsistent formatting, missing invoices, and no built-in bank reconciliation. Tracking everything across email threads and documents becomes time consuming, especially when clients request revisions or partial payments. 

It’s also difficult to maintain compliance with proper recordkeeping, which the IRS outlines for small businesses.

The right invoicing software solves these issues by:

• automating recurring invoices
• sending automatic payment reminders
• offering secure payment gateways
• providing a mobile app for invoicing on the go
• allowing integration with accounting platforms
• improving customer support access
• helping freelancers and teams choose between the best invoicing software for freelancers vs small businesses
  

If you run a local or home-service company and need more guidance, see: the definition of a service business.

Features to Look For in the Best Invoicing Software

Core Invoicing Tools

Look for easy creating invoices, custom branding, item libraries, tax settings, and reusable templates. Good software also includes a clear breakdown of line items and lets you attach files or photos—explained more in professional invoice elements.

Automations & Recurring Billing

If you bill clients monthly, automation is essential. The best small business software for invoicing will:

• send recurring invoices automatically
• trigger follow-up reminders
• apply late fees
• update invoice status in your dashboard

Payment Processing

Your invoicing system should accept:

• debit cards
• bank transfers
• online invoice payments
• built-in or third-party payment gateways

These options help clients pay faster and reduce back-and-forth communication.

Integrations & Accounting Features

Top invoicing tools offer integration with accounting, helping you:

• sync expenses
• automate bank reconciliation
• reduce manual data entry
• keep financial data consistent when your business grows

Mobile App & Ease of Use

Many small business owners work from job sites, client locations, or while traveling. A strong mobile app helps you create, edit, and send invoices instantly with no laptop required.

Best Invoicing Software for Small Businesses in 2025

Below are the seven strongest choices for small business owners, based on automation, value, payment processing, and ease of use.

1. Invoice Fly (Best all-in-one invoicing for contractors, freelancers, and small businesses)

Invoice Fly is designed specifically for small business owners who want fast, accurate billing with automation. It includes custom templates, recurring invoices, time tracking, easy expense logging, and a polished dashboard. It also offers a cleaner experience for anyone learning how to write an invoice. 

• Best use case: Small service businesses, freelancers, trades, and contractors
• Pricing: Affordable monthly plans; free invoice generator and free invoice templates available
• Pros: clean UI, automation, project tracking, mobile app
• Features including: payment reminders, project-based billing, fast invoice creation, seamless expense sync

2. Zoho Invoice (Best free plan for growing businesses)

Zoho Invoice remains one of the strongest free invoicing software options with powerful automation and time tracking. It includes integration with Zoho’s broader ecosystem and clean templates.

• Best use case: Startups and freelancers on a budget
• Pricing: 100% free plan for invoicing
• Pros: great customization, solid automation
• Features including: track time, recurring invoices, multilingual invoices, client portal

3. QuickBooks Online (Best for accounting + invoicing in one)

QuickBooks Online is widely considered as one of the best accounting and invoicing software for small business because it combines invoicing with full bookkeeping, payroll, tax tools, and expense tracking.

• Best use case: Businesses needing full accounting + invoicing
• Pricing: Tiered monthly plans
• Pros: strongest accounting integrations in the industry
• Features including: automatic sales tax calculations, reporting, bank reconciliation, recurring invoices

4. FreshBooks (Best for service-based businesses and client communication)

FreshBooks shines with its intuitive interface, excellent customer support, and built-in proposals and estimates. It’s also helpful for understanding quote vs invoice differences.

• Best use case: Creative agencies, consultants, home-service providers
• Pricing: Tiered subscription plans
• Pros: strong client communication tools
• Features including: time tracking, proposals, recurring invoices, project collaboration

5. Wave (Best free accounting + invoicing bundle)

Wave offers one of the best free invoicing software for small business setups. It includes free invoicing, unlimited clients, and no-cost accounting tools.

• Best use case: New entrepreneurs with small budgets
• Pricing: Free invoicing; paid add-ons for payments and payroll
• Pros: free plan, clean dashboard
• Features including: unlimited invoices, payment tracking, online invoice payments

6. Xero (Best for scaling teams and multi-user access)

Xero is built for businesses that want strong collaboration, accounting integrations, and an excellent mobile app.

• Best use case: Businesses with multiple users
• Pricing: Tiered paid plans
• Pros: full accounting suite
• Features including: inventory, billing, expense management, automated bank reconciliation

7. Paymo (Best for time tracking + project management)

Paymo combines invoicing with project management, task boards, and time tracking in one app.

• Best use case: Agencies, teams, and project-heavy businesses
• Pricing: Free and paid tiers
• Pros: powerful workflow automation
• Features including: timesheets, recurring invoices, task management, online payments

Free vs Paid Invoicing Software: What’s Right for You?

Free invoicing tools can be enough for new freelancers, solopreneurs, and low-volume businesses. They typically include:

• basic templates
• unlimited invoices
• limited customization
• simple payment tracking

If you need more automation, accounting integrations, or recurring billing, paid invoicing software is the better solution.

Additional helpful resources:

• free invoice templates
• free invoice generator

For trucking or logistics companies, check out our free trucking invoice templates.

How to Choose the Best Invoicing Software for Your Business

Size, Industry & Client Volume

Freelancers may need simple templates and automation. Larger teams may want shared dashboards, multi-user permissions, and integrated accounting.

Features You Actually Need

Consider:

• recurring invoices
• payment gateways
• a strong mobile app
• integrations with your accounting system
• ability to track time
• bank reconciliation

Questions to Ask Before Choosing

• Is customer support reliable?
• Are pricing tiers flexible as your business grows?
• Does the platform seamlessly integrate with accounting tools?
• Does it include IRS-friendly recordkeeping options?

To learn when invoices should be sent for fastest payment, read: When To Send Invoices

Ready To Choose An Invoicing Software That Works For You? 

The best small business software for invoicing depends on your workload, industry, budget, and how much automation you need. Whether you’re looking for simple billing, full accounting, or project-based invoicing, the tools above offer reliable options for 2025, for every industry.If you’re ready to speed up billing, get paid faster, and simplify your workflow, try our invoicing software to handle everything from recurring invoices to online payments.