2024's Most Effective Invoicing Software for Small Business: A Comprehensive Review

ccording to a U.S. Bank study, a large percentage of businesses fail due to cash flow problems. But what can small businesses do to avoid this fate? One solution relies on choosing the right invoicing software for your business. This guide will review the 7 invoice software options to help you choose wisely.

How to Choose the Right Invoicing Software for Your Small Business

With numerous invoicing software solutions in the market, selecting the ideal one for your small business is crucial. Here’s how you can do it: 

• Opt for invoicing software with an intuitive interface and minimal learning curve
• Assess features such as customizable invoice templates and automated payment reminders
• Robust reporting capabilities
• Consider pricing and plans and ensure they fits your budget comfortably
• Evaluate integration with existing business tools and accounting systems
• Prioritize software with reliable and responsive customer support

1. FreshBooks

FreshBooks stands out as an all-in-one invoicing and accounting solution tailored

for small businesses. It emphasizes user-friendliness with a clean interface and intuitive navigation.

Overview and Features

This cloud-based software supports a variety of essential functions:

• Invoicing: Generate unlimited and customizable invoices.
• Time Tracking: Monitor hours spent on projects efficiently.
• Expense Management: Track and categorize expenses effortlessly.
• Project Management: Coordinate projects and collaborate with teams.
• Reporting: Access comprehensive financial reports for insightful decision-making.

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Pros

• User-friendly and visually appealing interface
• Comprehensive feature set tailored for small businesses
• Scalable pricing plans to accommodate growth
• Robust mobile app for convenient access
• Excellent customer support and resources

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Cons

• Limited customization options in lower-tier plans
• Advanced features may require additional fees
• Integration with specific third-party tools may require extra setup

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Pricing and Plans

FreshBooks offers several pricing tiers to accommodate different business needs and budgets.

1. Lite Plan: $19 per month or $228 annually.
2. Plus Plan: $33 per month or $360 annually.
3. Premium Plan: $60 per month or $720 annually.
4. Select Plan: Customizable pricing for advanced needs.

All plans include essential features like time tracking, billable hours, and invoice expense tracking. A 30-day free trial allows potential users to explore features before committing.

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2. Zoho Invoice

Zoho Invoice is a standout choice for small businesses seeking a cost-effective invoicing solution. Recognized for its best value, the software offers a free plan that supports up to 500 invoices per year, making it an ideal choice for small enterprises looking to manage their expenses efficiently. The platform allows for customizable invoices, enhancing the professional appearance of business transactions.

Overview and Features

• Intuitive invoice creation and customization
• Automated payment reminders and recurring invoicing
• Time tracking and project management capabilities
• Expense tracking and management
• Multi-currency support
• Comprehensive reporting and analytics
• Integration with other Zoho applications

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Pros

• Comprehensive feature set tailored for diverse business needs
• Highly customizable options for branding and workflows
• Scalable pricing plans with a free tier for basic invoicing
• Mobile app for on-the-go access
• Seamless integration with other Zoho business applications
• Strong customer support and extensive resources

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Cons

• New users may struggle to navigate the interface
• Advanced features are limited to higher pricing tiers
• Using third-party tools may be a hurdle and require extra setup

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Pricing and plans

Zoho Invoice offers a range of pricing plans to accommodate businesses of different sizes and requirements:

• Free Plan: Suitable for businesses with minimal invoicing needs, allowing up to 5 clients and five invoices.
• Standard Plan: This plan starts at $15 per month and is ideal for growing businesses with unlimited clients, invoices, and projects.
• Professional Plan: This plan starts at $39 per month and is geared toward businesses with advanced needs. It offers custom branding, bulk actions, and project templates.
• Premium Plan: This plan is $79 For medium to large businesses requiring advanced end-to-end billing solutions.
• Enterprise Plan: Tailored pricing for large businesses with complex requirements, providing multi-user access, advanced reporting, and custom workflows.

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3. Invoice Ninja

Invoice Ninja is an open-source flexible invoice solution, and another good option for small businesses. The software allows its users to keep their data secure and customize the software according to their own preferences.

Overview and Features

Invoice Ninja offers a comprehensive suite of features and positions itself as an essential tool for freelancers and small to medium enterprises (SMEs). It supports multi-currency transactions and integrates with major payment gateways like Stripe and PayPal, ensuring global usability. The platform's versatility is showcased by its availability across multiple operating systems, including iOS, Google Play, Linux, and Windows, making it accessible from virtually any device. 

• Intuitive invoice creation, customization, and automation
• Automated payment processing and reminders
• Recurring invoicing capabilities for subscription-based businesses
• Expense tracking and management tools
• Customizable reports and analytics
• Inventory management and tax management functionalities
• Multi-business support for up to 10 separate businesses

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Pros

• There is a free plan available
• Flexible self-hosting options for data control and customization
• Many features to meet different business needs.
• Customizable branding and workflow options
• Mobile app for on-the-go access
• Extensive integrations with third-party tools and applications

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Cons

• Self-hosting setup may require technical expertise and resources
• Ongoing maintenance and updates can be a hassle 
• Integration with certain third-party tools may require additional setup or customization

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Pricing and Plans

Invoice Ninja offers a unique and flexible pricing model that caters to businesses of different sizes and requirements:

1. Free Plan: Allows one user and up to 20 clients, ideal for freelancers and new businesses starting out.
2. Ninja Pro Plan: Priced at $120 annually,, this plan is designed for growing businesses
3. Enterprise Plan: Tailored for larger operations, this plan's cost varies depending on the number of users, starting at $160 annually. It supports multiple users and provides all the features needed to manage larger client bases effectively.

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4. Square Invoices

Square Invoices is a not so square choice for small businesses, offering a comprehensive invoicing solution that simplifies financial transactions. This software is particularly beneficial for those looking to manage their invoicing processes efficiently, with features that support quick payment options and easy invoice management.

Overview and Features

• Easy invoice creation and customization
• Automated payment processing and reminders
• Customer management with contact information
• Sales tax calculation and reporting
• Recurring invoicing for subscription-based services
• Integration with other Square products, such as Square Point of Sale and Square Payments

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Pros

• Intuitive and user-friendly interface
• Transparent fees for an affordable pay-as-you-go pricing model
• It comfortably fits Square ecosystem
• Unrestricted invoicing and estimates
• Flexible payment options, including online, in-person, and card-on-file payments
• Mobile app for on-the-go invoicing and payment management

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Cons

• Limited customization options for invoices
• Lack of advanced features like project management or inventory tracking
• Not ideal for businesses needing intricate invoicing solutions.
• Customer support may be limited compared to more robust solutions

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Pricing and plans

Square Invoices offers a simple pricing structure without monthly charges or contracts. Depending on the payment method, companies pay a percentage of each transaction:

• Free Plan: Everything you need to get paid faster. Send unlimited invoices, estimates, contracts, and more for free.
• Plus Plan: $20 per month for growing businesses that want to streamline work and billing needs with advanced, time-saving features. This tier is essential if you need customization on your invoices.

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5. Xero

Xero is a cloud-based solution built for small businesses. Main features include invoicing, expense tracking, project administration, and so on, Xero offers a holistic approach to financial operations to foster stronger customer relations. 

Overview and Features

• Intuitive invoice creation, customization, and automation
• Automated payment reminders and recurring invoicing capabilities
• Expense tracking and management tools
• Project management and time-tracking functionalities
• Customizable reports and analytics
• Inventory management and sales tax management
• Multi-user access and collaboration features

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Pros

• Comprehensive set of features for invoicing, accounting, and financial management
• Scalable pricing plans to accommodate business growth
• Extensive integration capabilities with third-party tools and applications
• User-friendly interface and mobile app for on-the-go access
• Customizable branding and workflow options
• Strong customer support and resources

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Cons

• Initial setup and learning curve for new users
• Using more advanced features might mean needing to switch to higher-priced plans.
• Integration with specific third-party tools may require additional setup or costs

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Pricing and Plans

Xero offers a range of pricing plans to cater to businesses of different sizes and requirements:

• Early Plan: Starts at $15 per month, designed for freelancers and small businesses
• Growing Plan: Starts at $42 per month, suitable for growing businesses requiring more than 20 invoices per month
• Established Plan: Starts at $78 per month, tailored for more complex needs and multi-currency support

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6. Wave Accounting

Wave Accounting is a cost-effective invoicing and accounting solution that benefits small businesses and freelancers by providing a free core offering. 

Overview and Features

Key features of Wave Accounting software include:

• Intuitive invoice creation and customization with branded templates
• Automated payment processing and reminders
• Customer management and contact information tracking
• Sales tax calculation and reporting
• Expense tracking and categorization with receipt scanning
• Integrated accounting tools, including bank account reconciliation
• Mobile app for on-the-go access

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Pros

• Free plan tier available 
• User-friendly interface and intuitive navigation
• Basic invoicing and accounting necessities are covered
• Integrated accounting tools for streamlined financial management
• Unlimited invoices, customers, and bank account connections

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Cons

• Limited customization options and advanced features
• It may not cater to businesses with complex invoicing or accounting requirements
• Lack of advanced features like inventory management or project tracking
• Integration is limited primarily to Wave's suite of applications

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Pricing and Plans

Wave Accounting offers a unique and attractive pricing model for small businesses:

• Free Plan: Completely free for businesses with up to $5,000 in monthly revenue
• Paid Plan: This plan starts at $19 per month for businesses exceeding the $5,000 monthly revenue limit and includes advanced features like double-entry accounting and custom reports.

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7. Novo

Each Novo checking account comes with a free business invoicing software built in. Create and send an unlimited number of free invoices from any device. 

Overview and Features

Critical features of Novo include:

• Intuitive invoice creation, customization, and automation
• Automated payment reminders and recurring invoicing capabilities
• Project and time tracking for billable hours
• Expense categorization and management
• Customizable financial reports and analytics
• Inventory management and sales tax management
• Multi-user access for collaboration

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Pros

• User-friendly interface and intuitive navigation
• Intuitive transaction dashboard that allows recurring invoices, editing, and one-click reminders
• Unlimited number of free invoices
• Fast access to funds
• Multiple payment options, including credit card, Apple Pay, Google Pay, Paypal, and more. 

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Cons

• A Novo checking account is required to use this software
• Initial setup and learning curve for new users

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Pricing and Plans

Novo’s Invoicing platform is free, with no hidden fees. 

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Conclusion

Every small business is different and has different needs, and Novo is committed to pointing you towards the right solution for you. The software options discussed offer a range of functionalities, from basic invoicing to comprehensive accounting solutions, catering to diverse business needs. It’s up to you to consider your business’s needs and choose accordingly.

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FAQs

1. What options are available for billing software for small businesses?

Choosing billing software for small businesses involves considering various factors. There are free solutions suitable for freelancers and small businesses, albeit with limitations on clients and invoices. On the other hand, paid options often offer more features to support business growth. Consider these 7 invoice software solutions we provided: 

• FreshBooks
• Zoho Invoice
• Invoice Ninja
• Square Invoices
• Xero
• Wave Accounting
• Novo

2. What advantages does billing software offer?

Implementing  billing software reduces the possibility of errors since operations and saves time. Automating accounting, invoicing, and all related processes also contributes to improved project and client management. Moreover, streamlining billing and invoicing procedures ensures that bills are processed and sent out in a timely manner.

3. How can I deliver an invoice to a recipient?

Email is the most widespread method for sending invoices. If you prefer the option of using invoicing software, you can directly share the link from the platform. A possible way to invoice your client is by sending the invoice through email or invoicing software. You can, however, print the invoice and mail it if your client doesn’t use  email or any invoicing software.

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Novo is a fintech and not a bank. Novo acts as a service provider to Middlesex Federal Savings, F.A., and the deposit and banking products obtained through the Novo platform are provided by Middlesex Federal Savings, F.A.

Novo Platform Inc. strives to provide accurate information but cannot guarantee that this content is correct, complete, or up-to-date. This page is for informational purposes only and is not financial or legal advice nor an endorsement of any third-party products or services. All products and services are presented without warranty. Novo Platform Inc. does not provide any financial or legal advice, and you should consult your own financial, legal, or tax advisors.

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