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Invoicing and accounting software for small businesses compared

Sending invoices is easy. Getting paid on time and keeping your books tidy is where the right tool helps.

At a glance

Tool	Good fit for	Free option
FreshBooks	service businesses and freelancers who bill for time	Free trial
Xero	businesses that want full accounting with an accountant	Free trial
QuickBooks Online	businesses that want full accounting, especially in the US	Free trial
Zoho Invoice	sole traders who only need invoices	Free plan
Wave	very small businesses on a tight budget	Free plan

What to compare

Invoicing only or full accounting? If you have an accountant, choose software they already use.
Online payments. Card and bank payments straight from the invoice speed up cash flow.
Tax rules where you trade. Check that the software supports your country's sales tax, GST or VAT reporting.
Bank feeds. Automatic bank feeds save hours of data entry.

FreshBooks

Good fit for: service businesses and freelancers who bill for time

FreshBooks is built around invoicing, time tracking and expenses, with online payments and automatic reminders.

Try FreshBooks

Xero

Good fit for: businesses that want full accounting with an accountant

Xero is cloud accounting software with invoicing, bank reconciliation and a large app marketplace. It is widely used by accountants in Australia, New Zealand and the UK.

Try Xero

QuickBooks Online

Good fit for: businesses that want full accounting, especially in the US

Intuit's cloud accounting product covers invoicing, expenses, reporting and, in some countries, payroll.

Try QuickBooks Online

Zoho Invoice

Good fit for: sole traders who only need invoices

Zoho Invoice is offered free of charge by Zoho and covers quotes, invoices, payment reminders and a client portal.

Try Zoho Invoice

Wave

Good fit for: very small businesses on a tight budget

Wave's Starter plan is free and lets you create unlimited estimates, invoices and bills. The paid Pro plan adds features such as automatic bank imports and discounted online payment rates.

Try Wave

Our suggestion

If you only send a handful of invoices a month, start with a free plan. Once you have staff, stock or an accountant, move to Xero or QuickBooks so everything lives in one set of books.

Sources

Sources checked 15 October 2026.