Billing and Invoicing Software in 2025 for Freelancers, SMBs, and Agencies

In today’s fast-paced business world, managing billing manually can lead to missed payments, errors, and wasted time. That’s why thousands of businesses rely on billing and invoicing software to automate payments, track income, and stay tax-compliant.

Whether you’re a freelancer sending simple invoices or a business managing recurring subscriptions, here are the 10 best billing and invoicing software tools in 2025.

1. FreshBooks – Best Overall for Small Businesses and Freelancers

FreshBooks offers powerful invoicing tools with automated payment reminders, expense tracking, time logs, and proposals. It’s known for its clean interface and strong customer support.

✅ Best for: Freelancers, creatives, and service-based SMBs
🔍 Why it’s great: Customizable invoices, late fees, recurring billing, mobile app

2. QuickBooks Online – Best for Accounting + Invoicing

QuickBooks is an accounting powerhouse that includes invoicing, expense tracking, tax prep, and reporting in one dashboard. Invoices are fully customizable with payment integration.

✅ Best for: Businesses that need billing + full accounting features
🔍 Highlight: Syncs with bank accounts, payroll, and tax software

3. Zoho Invoice – Free and Feature-Rich for SMBs

Zoho Invoice is a 100% free tool (as of 2025) offering multi-currency billing, recurring invoices, automated reminders, and time tracking.

✅ Best for: Startups and international service providers
🔍 Why users love it: No hidden fees + works seamlessly with other Zoho apps

4. Wave – Best Free Option for Freelancers

Wave is a free billing platform with tools for invoicing, payments, receipt scanning, and basic accounting. You can accept credit card payments and bank transfers.

✅ Best for: Solo entrepreneurs and side hustlers
🔍 Why it stands out: Zero cost + solid features for basic needs

5. Xero – Powerful Invoicing with Scalable Accounting

Xero offers professional-grade invoicing, inventory, recurring billing, and multi-user collaboration. It’s designed for growing businesses needing full financial visibility.

✅ Best for: SMEs and businesses with in-house accountants
🔍 Key benefit: Integrates with 1,000+ third-party apps + great reporting tools

6. Invoice Ninja – Open-Source and Customizable

Invoice Ninja offers both cloud and self-hosted options, ideal for teams who want control over branding, client portals, and recurring billing.

✅ Best for: Developers and privacy-conscious businesses
🔍 Why it’s popular: Self-hosted option + 45+ payment gateways

7. Bonsai – Contracts + Invoicing for Freelancers

Bonsai is built specifically for freelancers, combining contract generation, time tracking, project proposals, and invoicing in one tool.

✅ Best for: Creatives and consultants managing clients and billing
🔍 Unique feature: Auto invoice after time tracking or milestone completion

8. Bill.com – Best for Large Teams and Payables/Receivables Management

Bill.com automates accounts payable and receivable, making it easy to approve bills, track payments, and sync with tools like NetSuite, QuickBooks, and Xero.

✅ Best for: Businesses managing large invoice volumes
🔍 Why it’s enterprise-grade: Advanced audit trails + multi-approval workflows

9. Square Invoices – POS + Online Billing for Sellers

Square Invoices is perfect for vendors using Square POS or running hybrid retail-service businesses. It supports mobile billing, deposits, estimates, and real-time payments.

✅ Best for: Brick-and-mortar + online sellers
🔍 Highlight: Simple setup + tight POS integration

10. PayPal Invoicing – Easy Digital Invoicing with Payment Integration

PayPal Invoicing offers instant invoice creation with built-in payment collection, tax, discount, and tipping support. It’s great for fast, international billing.

✅ Best for: Occasional freelancers and global digital service providers
🔍 Why it works: Seamless PayPal payments + mobile invoicing

 Conclusion:

Whether you need simple invoice creation or robust billing automation, here’s how to decide:

  • Choose FreshBooks, Zoho Invoice, or Bonsai if you’re a freelancer or agency

  • Use QuickBooks, Xero, or Bill.com if you need full accounting + billing

  • Try Wave or Invoice Ninja for powerful free or open-source solutions

  • Opt for Square Invoices or PayPal if payments and POS are your priority

The right billing software will save you time, improve cash flow, and make client relationships smoother.

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