How to Choose Invoicing Software for a Small Business
How to choose invoicing software: what to look for, how FreshBooks, QuickBooks and Wave structure plans, and how card fees and users change your real cost.
Invoicing software creates and sends invoices, records who has paid and, in most cases, lets customers pay online. The best choice for a small business depends less on the invoice template than on how you'll be charged, how many people need access and whether you also need bookkeeping.
This guide is based on each vendor's own pricing pages, checked on 20 September 2026. We haven't tested the products hands-on, so we don't rank them on ease of use. It doesn't quote monthly prices, which change often and vary by region.
What invoicing software should do
- Create professional invoices quickly, ideally from a saved customer and a quote or estimate
- Accept online payments by card or bank transfer
- Send reminders for unpaid invoices
- Show what's owed and who is late
- Fit your accounting, either by including bookkeeping or by connecting to it
- Work on your phone, if you invoice from the job
If you run a trades business, note that field-service tools such as Jobber and Housecall Pro include invoicing alongside scheduling. See Jobber vs Housecall Pro and our guide to choosing a CRM.
How three popular tools structure their plans
| FreshBooks | QuickBooks Online | Wave | |
|---|---|---|---|
| Plan structure | Lite, Plus, Premium and Select | Simple Start, Essentials, Plus and Advanced | Free Starter plan and a paid Pro plan |
| What sets the tier | The number of billable clients (5 on Lite, 50 on Plus, unlimited on Premium and Select) | Features and the number of users included (1, 3, 5 and 25 across the four plans) | Features; Pro adds extras such as discounted receipt scanning and a card-fee discount on the first ten transactions each month |
| Extra people | Additional team members are charged per user | Plans include a set number of users | Not covered here |
| Try before you pay | 30-day free trial, no credit card required | 30-day free trial | Free Starter plan |
| Regions | Check your region | Check your region | Priced in USD and CAD; some features are US only |
Read the full details in FreshBooks vs QuickBooks vs Wave.
The cost people forget: payment processing
Taking a card payment through your invoice costs money on top of the subscription. The vendors' pricing pages show a percentage plus a fixed amount per card transaction, with bank transfers usually cheaper. Over a year, those fees can exceed the subscription. Work out yours with our payment fee calculator and read how card processing fees work.
Questions to ask before you choose
- How is it priced as I grow? By clients, by users, or by features?
- What will I pay to accept card payments? Compare the percentage and the fixed fee.
- Do I need accounting too? If so, is it included or a separate product?
- Is it available where I work? Some features are limited to certain countries.
- Can I export my data? You should be able to leave with your customer and invoice history.
Getting the invoices themselves right
The software doesn't decide what an invoice must contain. Rules differ by country. See what to include on an invoice. Then follow the routine in how to get paid faster and how to chase overdue invoices.
Price your work so it covers these costs
Invoicing costs, from software to card fees, come out of your margin. Our markup and margin calculator shows what price you need to keep the profit you planned.
Frequently asked questions
Do I need invoicing software, or is a template enough?
A template works for a handful of invoices a month. Software earns its place when you want to accept online payments, send reminders automatically, track who owes you and reuse customer details without retyping.
Is there free invoicing software?
Some vendors offer a free plan. Wave's pricing page describes a free Starter plan with unlimited invoices and estimates, available in the US and Canada, with card processing charged per transaction when you accept online payments. Check the current terms.
What is the difference between an invoice and a receipt?
An invoice is a request for payment. A receipt acknowledges that payment was made. GOV.UK's guidance makes the same distinction.
Will my invoicing software also take payments?
Most can, through a payment processor, and the processor charges per transaction on top of your subscription. Compare the fees, not just the plan price.
Sources
- FreshBooks — Pricing — checked Sep 20, 2026
- QuickBooks Online — Pricing — checked Sep 20, 2026
- Wave — Pricing — checked Sep 20, 2026
- GOV.UK — Invoicing and taking payment from customers — checked Sep 20, 2026
Everything in this guide
In-depth guides
- Article
FreshBooks vs QuickBooks vs Wave: How the Plans Differ
FreshBooks, QuickBooks Online and Wave price invoicing differently: by client, by user or free with fees. See how each is structured on its own pricing page.
· 2 min read
- Article
How Card Processing Fees Work for Small Businesses
How card processing fees are usually charged: a percentage plus a fixed amount per transaction, why bank transfers cost less, and how to work out your cost.
· 2 min read
- Article
How to Chase Overdue Invoices Politely and Effectively
A step-by-step routine for chasing overdue invoices: a friendly reminder, a firmer follow-up, a phone call and next steps, with example wording to adapt.
· 2 min read
- Article
How to Get Paid Faster as a Small Business
Practical ways for a small business to get paid faster: agree terms upfront, invoice promptly, make paying easy, offer more than one method and remind politely.
· 2 min read
- Article
What to Include on an Invoice: A Small Business Checklist
What a small business invoice should include: the two details GOV.UK says every invoice must state, a practical checklist, and why the rules depend on country.
· 2 min read
Free tools
- Tool
Card Payment Fee Calculator: What You Keep From Each Invoice
Free card payment fee calculator. Enter your processor's percentage and fixed fee to see what you receive, your monthly cost and what to charge to cover the fee.
Use the free tool →
- Tool
Markup and Margin Calculator for Quotes and Job Pricing
Free markup and margin calculator. Enter your cost plus a markup, margin or price and see the rest, so your quotes earn the profit you planned.
Use the free tool →
Related reading
- ArticleInvoicing
FreshBooks vs QuickBooks vs Wave: How the Plans Differ
FreshBooks, QuickBooks Online and Wave price invoicing differently: by client, by user or free with fees. See how each is structured on its own pricing page.
· 2 min read
- ArticleInvoicing
How Card Processing Fees Work for Small Businesses
How card processing fees are usually charged: a percentage plus a fixed amount per transaction, why bank transfers cost less, and how to work out your cost.
· 2 min read
Related free tools
- ToolInvoicing
Card Payment Fee Calculator: What You Keep From Each Invoice
Free card payment fee calculator. Enter your processor's percentage and fixed fee to see what you receive, your monthly cost and what to charge to cover the fee.
Use the free tool →
- ToolInvoicing
Markup and Margin Calculator for Quotes and Job Pricing
Free markup and margin calculator. Enter your cost plus a markup, margin or price and see the rest, so your quotes earn the profit you planned.
Use the free tool →
Get practical tech tips for your business
New guides, honest reviews and free tools — straight to your inbox. No spam, unsubscribe anytime.