Best Invoicing Software in 2025

Invoicing software programs are highly variable as they cater to different vertical markets. Some companies invoice by the hour, while others may do so after project completion. The invoicing process allows companies to show their image to clients, which involves online relationship management as well. More factors to be considered include the method of invoice sending, size of the customer base, timeframe for payment collection, and processing of late or delayed payments. All these make it hard to select the best invoicing programs for enterprises and SMBs. This buyer’s guide aims to make it easy for you to choose the best invoicing software tools for your business needs.

First of all, a good course of action is to sign up for at least a few free trial plans or demos from popular invoicing software providers. This, after checking several invoicing reviews. With this method, you will have the opportunity to test the important elements and get a good comparison of the capabilities of each app. You will also be able to understand what is invoicing software better. The best thing to do is to try services that currently have the highest rankings in our SmartScore and Customer Satisfaction Rating in our invoicing software reviews: Melio, QuickBooks Online, NetSuite ERP, FreshBooks, Salesforce CPQ, Sage Business Cloud Accounting, vcita, Zola Suite, Easy Busy Pets, and Zoho Books.

Invoicing software buyers fall into the following main categories:

• Stand-alone buyers – Some purchasers need a high level of flexibility and customization in their invoicing software. These buyers focus more on invoicing and require a stand-alone system for their unique invoice management needs.
• Buyers of Integrated systems – Other purchasers want the invoicing feature to be part of a bigger accounting system. These purchasers want a holistic software, where the invoicing module automatically logs collected payments as accounts receivables in the general ledger. These users place a high value on specific invoicing features. Suites other than accounting software can also offer invoice management and accounts receivable features. For example, child care management solutions include an invoicing feature particular to daycare units, salon software have these features, together with point-of-sale (POS), and medical software vendors provide medical invoice functionality for inpatient/outpatient care providers as well as outsourced invoicing services for healthcare units.
• Unique buyers – An example of these purchasers are utility companies that need a list of exclusive tools for the specific invoicing processes of their industry. These companies usually create their own software or outsource invoice management as custom work to a third party.

• Melio – A web-based platform that lets users send customized invoices and helps ensure on-time payments. Through the software, users can also get paid for invoices online, with incoming payments being automatically reconciled with the right invoice.
• QuickBooks Online – A robust invoicing solution for startups and small businesses. It offers a full range of features for expense tracking, invoice customization, and financial reporting. The software’s web-based platform also improves data visibility.
• NetSuite ERP – An AR/AP platform designed for fast-growing businesses. The software automates AR and AP processes to reduce costs, helping businesses to get paid faster by minimizing errors and redundancies.
• FreshBooks – A cloud-based platform that makes it easier to track invoices from creation to payment. An intuitive interface also ensures that users can create invoices in seconds. For faster payments, the software also integrates with PayPal and Stripe.
• Salesforce CPQ – Salesforce CPQ makes it easier for teams to create accurate sales quotes and create invoices from these quotes. These features help sales teams save time and improve productivity.

There are various types of invoicing apps, including free and basic suites, and ultra costly and accurate programs. Features can also be categorization criteria, as certain programs do nothing but create online customer records, while others are more robust and allow companies to use predefined communication templates, set up currencies, and even do some custom branding. Deployment is also an important factor based on which there are:

• On-premise invoicing systems. These are covered by a single license and are hosted on the client’s local server. They qualify as the most expensive ones, due to the fact that they require complex setups and, occasionally, some hardware installation.
• Software-as-a-Service (SaaS) invoicing systems. These are usually paid per month and are hosted on the vendor’s server. The business owner is not responsible for installation, updating, and maintenance.
• Cloud-hosted invoicing systems. Most of these offer free basic plans and qualify as the most affordable ones due to their universal access and the fact that the client doesn’t need to update them or pay for maintenance.

The following features are the most common in the best invoicing software solutions:

• Creating a new invoice. The feature should allow you to create clean and professional invoices, and customize them to match your brand. The system should be able to draw relevant information from timesheets, projects, and customer records, and disable invoice duplication.
• Creating customer records. This feature allows you to summarize customers’ personal and purchase information and to attach relevant files in a single, centralized database. The database should ideally be equipped with a search filter you could use to access the record of a particular customer.
• Accept PayPal or credit card. The invoicing suite should help you to save time and facilitate invoice payments by processing credit cards on the dot, and allow for recurring invoicing and secure customer management. Some systems make it possible even to auto-charge cards so that clients won’t miss a due payment.
• Predefined communication templates. The visual aspect of your invoices is almost equally important to their accuracy, which is why you should look for a system that provides beautiful and predefined communication templates. This will not only save you time but also allow you to personalize accounting and make it more suitable for your brand.
• Currency setting. You need this feature to connect your invoicing system seamlessly to the rest of your software architecture, the same as your basic financial operations. Multiple currency settings can be useful also for issuing receipts, accepting payments, and managing taxes, and this is of great importance to global companies.
• Import/export customers. This function allows you to send invoices to your customers in a few seconds because there is a centralized database where all their information is stored and made available.
• Invoice, payment, and tax report. A good e-invoicing system should eliminate the need for you to use external systems for tax reporting. Ideally, you should be able to perform it within the same system, without losing hours from summarizing information.
• Paperless transactions. Another unique selling point for invoicing software is the massive reduction of paper-based invoices. Especially with mobile device-based software, the need for paper copies has become obsolete.

After detailed comparisons and tests, we found that the best invoicing software should be able to offer you the following benefits:

• Minimize late payments – The right software solution can help to streamline your invoicing process and enable you to get payments on time. You can keep your data organized and not miss any collection, which will boost your profitability.
• Minimize missed payments – You can keep better track of your invoicing commitments to ensure you do not miss any payments. The advantages can be amazing in the long run.
• Maintain a professional image – A good invoicing solution can help you to portray a professional company image. Most systems offer support for customized logos and other design improvements to payment documents and invoices. You can use the software to put forward an organized and prompt approach that can enhance your reputation with your clients.
• Manage subscriptions – Using automated invoicing software ensures that recurring payments are tracked from start until the end of the subscription. This helps minimize errors for stopped or canceled accounts.
• Reduced overhead – Automating the invoicing process significantly reduces the chances of errors compared to manual work and also helps prevent missing out on some accounts. This leads to a lesser need for manpower and overtime charges.
• Promote transparency – Increasing the efficiency of your invoicing process through automation means you can access data and provide reports quicker and easier. Whether to clients or management, having data readily available inspires the trustworthiness of the information.

Just like everything else, there will be occasions where concerns about invoicing software will surface. Some issues may be on the surface and can be easily addressed, while some might require addressing underlying factors.

• Can’t see the big picture – Software may address invoicing, but in most cases, you’ll need to see the complete customer lifecycle to get the overall client picture. This involves purchase orders, account activation/renewal/termination, loyalty and years of service, etc. Ultimately, the client relationship is defined as much more than just the timely payment of accounts.
• Integration issues – Ensuring automation across the entire account management process is the ideal scenario, and invoicing alone just won’t do. Of course, some software work better when paired with certain systems, and there are integrated solutions that offer invoicing as part of the complete system. Along with fit, cost also comes into play when deciding on integrating.

With the rapid advance of globalization, although tempered by the effects of the global pandemic sweeping the planet, invoicing remains a welcome solution for automating transactional functions.

• Expanded services for large enterprises – While invoicing software originally targeted freelancers and SMEs, there is a growing need to address requirements for large-scale enterprises, which are currently being serviced using an integrated holistic approach by suite packages.
• Increased worldwide payment solutions – Gone are the days when Mastercard and Visa were duking it out. Having a global presence means accepting a wider range of payment options like Alipay, Paypal, or even cryptocurrency.