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The Best Invoicing Software for Small Business

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Last editedSep 20223 min read

For small businesses, any delay in payment can lead to restricted cash flow and difficulty paying the bills. A streamlined invoicing system ensures your business gets paid on time. Not only can invoice software automatically issue and follow up on your customer invoices, but it can help you track payments while cutting down on costly errors. Here’s what to look for in the best invoicing software for small business.

What is invoicing software?

There are hundreds of accounting tools on the market – but what is invoicing software, specifically? This term refers to a tool that automates business invoicing processes. Invoice software uses custom templates to generate a list of products or services provided alongside their costs. This itemized list is presented with all relevant payment terms and issued to customers accordingly.

While you can create and submit invoices manually, the process can be time-consuming and prone to human error. Any errors in your invoice will need to be followed up on, causing payment delays. In addition to invoice templates, software also stores client contact details, processes payments, and generates financial reports on your behalf. It even sends automated payment reminders to clients, helping you avoid awkward conversations.

What are the benefits of using invoicing software?

The primary benefit of any invoicing software is convenience. Manual invoicing takes a great deal of time if you process a high volume of transactions. Additional benefits of using invoicing software include:

  • A reduction in delayed payments

  • Invoice tracking to ensure payments don’t go missing

  • Automatic reconciliation with financial statements and bank accounts

  • A boost to your professional reputation with clean, clear templates

  • Streamlined accounting processes

  • Easy integration with accounting and payment systems

  • Secure cloud storage of financial information

What is the best invoicing software for small business?

Not all invoice software is created alike, so how can you choose the best option for your business? Here are a few of the best invoicing software for small business on the market today.


Full-service accounting platform Xero not only supports over 700 app integrations, but it also supports unlimited users with no added cost. This means that all team members can log in to manage invoices as needed. It offers a variety of plans, making it a scalable option as your small business starts to grow. The software includes customizable invoice templates with branding tools and allows you to accept payments from clients with a single click. You can also set up automated late payment reminders and generate financial reports.


If your business offers subscription services, Chargebee could be a great option. It generates and submits recurring invoices using professional templates. Chargebee also assists with tax preparation and financial report generation. If you provide on-tap services like utilities, it includes built-in metered billing support. Businesses can choose from a selection of different payment options including cards, checks, ACH payments and online wallets.


Another subscription management platform, Billforward makes short work of creating accurate invoices for small businesses. In addition to professional invoice templates, Billforward helps you issue price quotes and estimates. You’ll be able to use its integrations to collect recurring payments with full API access for customization potential.


While it’s used by major enterprise-sized companies, Invoiced is equally suited to small businesses with its payment support and user-friendly setup. Customers can set up recurring billing with automated invoice submission and payment reminders. Invoiced also lets you customize your invoices with special offers and discounts, like promotion codes and deals for bulk orders.

How to choose invoicing software for small business

There’s no shortage of invoicing software for small businesses, so how can you choose the right fit? At the base level, you’ll want a solution that can handle:

  • Invoice creation

  • Information integration

  • Customer database

  • Tax reporting

  • Payment processing

Think about your monthly budget. Some options charge an installation and set-up fee in addition to the monthly rate. Others will charge by volume or user, so these are all factors to compare.

GoCardless integrates with over 300 partners, including all the invoice software mentioned above, to facilitate your payment collection. Businesses can collect invoice payments directly from customers’ bank accounts, for a more convenient user experience and reduction in payment delays. In fact, GoCardless customers get paid up to twice as fast when sending online invoices.

We can help

GoCardless is a global payments solution that helps you automate payment collection, cutting down on the amount of financial admin your team needs to deal with. Find out how GoCardless can help you with one-off or recurring payments.

Over 85,000 businesses use GoCardless to get paid on time. Learn more about how you can improve payment processing at your business today.

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Interested in automating the way you get paid? GoCardless can help
Interested in automating the way you get paid? GoCardless can help

Interested in automating the way you get paid? GoCardless can help

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