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6 Best Billing Software for Small Businesses

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The GoCardless content team comprises a group of subject-matter experts in multiple fields from across GoCardless. The authors and reviewers work in the sales, marketing, legal, and finance departments. All have in-depth knowledge and experience in various aspects of payment scheme technology and the operating rules applicable to each. The team holds expertise in the well-established payment schemes such as UK Direct Debit, the European SEPA scheme, and the US ACH scheme, as well as in schemes operating in Scandinavia, Australia, and New Zealand. See full bio

Last editedJan 20223 min read

Manual billing and invoice processing can take a time-consuming toll on businesses of any size. Fortunately, there’s a wealth of small business billing software out there to help streamline the process with automation. You’ll be able to create, send, and process invoices all from a central dashboard.

With the right accounting software, you can reduce the risk of human error while increasing the chances of getting paid on time. The market is saturated with software and automated tools, so how can you choose the best fit? Here’s our pick of the best billing software for small businesses, blending user-friendly interfaces with useful and feature-rich tools.

Xero

When it comes to software for small business billing, Xero earns top marks for its comprehensive features. It not only can handle online invoicing but a wealth of additional financial management and accounting tasks. These include report generation, scheduling, project management, and expense tracking. In terms of billing, you’ll be able to create recurring invoices with templates and branding tools. Businesses can also set automatic reminders for late payments to keep cash flow on track.

Xero integrates with over 700 apps, giving you plenty of options to customise the software to suit your business needs as it grows. You can also choose from several tiered plans, starting with options for freelancers and sole traders.

Intuit QuickBooks

Another top option for small business billing software is QuickBooks. This cloud-based program is not only popular with larger businesses, but also works well for start-ups and freelancers alike. You’ll benefit from features like automated reports, invoice templates, and automatic bank reconciliation. Create and send online invoices to your customers, tracking any overdue payments with automated reminder emails.

QuickBooks even lets you track payments in real time. You’ll be notified when your customer opens their invoice, ensuring no paperwork goes missing. And to further assist with chasing late payments, the software can handle discounts and late fees for better billing management.

Sage Accounting

Sage offers a selection of cloud-based accounting platforms, including Sage50 and Sage200, which provide numerous useful billing features. This online billing software for small businesses integrates easily with Microsoft 365 and other apps. It generates online invoices, manages inventory, and helps track and manage cash flow.

Like other options on the list, Sage lets you choose from a range of tiered plans. The most basic level comes with invoice creation, payment tracking, and automatic bank reconciliation. You can upgrade for additional tools like data analysis and cash flow forecasting, and all users gain access to 24/7 customer support.

Zoho Books

If you’re new to the world of billing, Zoho Books could be a good choice with its user-friendly, intuitive design. This billing software for small businesses allows users to create and submit invoices automatically. It also integrates with a variety of payment apps, while generating financial reports.

Users really benefit from Zoho’s automated payment reminders and recurring payment features. These cut down on errors and reduce late payments from clients. Additional tools include multi-currency pricing, e-signature integration, and a streamlined returns system.

Kashflow

Managing taxes is one of the biggest headaches for new businesses. Kashflow stands out for UK users because it lets you link your business accounts directly to HMRC for automatic VAT returns and tax filing. This significantly cuts down on admin time, while also keeping you on top of all financial obligations.

In terms of invoicing, this billing software creates and sends invoices automatically. It also integrates with numerous apps for easier payment processing and expense tracking. Finally, you’ll be able to tackle HR and payroll using Kashflow as your business starts to grow.

FreeAgent

The final online billing software for small business on our list is FreeAgent, which offers many of the same features we’ve mentioned above. Yet this software caters specifically to small businesses, enabling recurring invoices, payment reminders, and time tracking. As your business grows, FreeAgent keeps pace by supporting unlimited users and clients. Invoices are sent out automatically ensuring no payments go missing. You’ll also have a variety of templates to choose from – just add your logo and contact details for easy set-up.

Choose the right software for small business billing

As you can see, there’s no shortage of choice when it comes to software for small business billing. So, how can you choose the right fit? Ask yourself a few key questions:

What is your monthly budget for small business billing software?
Is the platform secure?
Will repetitive billing tasks be fully automated?
What type of payment gateways does the software work with?
Is the software scalable to keep up with business growth?

All six options on the list above partner with GoCardless for seamless integration and easier billing. Create unique invoices and accept recurring payments automatically, freeing up your time for more pressing business matters.

We can help

GoCardless helps you automate payment collection, cutting down on the amount of admin your team needs to deal with when chasing invoices. Find out how GoCardless can help you with ad hoc payments or recurring payments.