The 7 Best Invoicing Software for Small Businesses in 2026

Quick answer: the best invoicing software for small businesses

Three of the best invoicing software options for small businesses in 2026 are QuickBooks Online (best overall for accounting-led teams), Zoho Invoice (best free plan), and Rho (best for invoicing in the same platform as your business account).

Rho is one of the best options for US-incorporated small businesses that want invoicing, ACH and domestic wire collection, and the business account in one platform.

How we ranked them. We compared each tool on four criteria that decide how small-business invoicing goes in practice:

1. Cost to send: the plan price, and what the free tier actually limits

2. Cost to get paid: card and ACH fees on the money that comes in

3. How customers pay: methods accepted, and whether the payer needs an account

4. Fit: who the tool suits, from solo operators to teams with an accountant

Best invoicing software for small businesses compared

Pricing and fees as of October 19, 2026. Scroll to see more on mobile.

On a small invoice the subscription matters most; on a big one, the fee on the payment does. Both are in the table.

What small businesses need from invoicing software

Small-business invoicing has four recurring problems. Here is what each one asks of your software, and which tools on this list handle it.

Getting the invoice out the door. QuickBooks, Zoho Invoice, FreshBooks, and Square all list recurring invoices, so the repeat customer gets billed without you retyping anything. Zoho Invoice, Wave, Square, and Xero also list quotes or estimates for work that starts before the bill does.

Chasing late payers. QuickBooks, Zoho Invoice, and FreshBooks list automated payment reminders, and Xero sends them before and after the due date on a daily, weekly, or custom schedule. Late payers are a process problem, and a reminder is the cheapest process.

Letting customers pay the way they want. Customers pay in different ways. Ask your five biggest customers how they prefer to pay, and pick a tool that accepts those methods on the invoice itself. Rho and QuickBooks let customers pay without creating an account of their own, and Zoho Invoice and Xero offer a customer portal or a "Pay now" button.

Knowing what you keep. The subscription is the number everyone compares, but processing fees decide what lands in your account. QuickBooks lists 1% on ACH, Wave 1%, and Square Plus 1% with a $10 cap; Rho lists $0 Rho fees on domestic ACH payments received (card payments cost 2.9% + $0.30 each, paid by the business).

No tool wins every row. The reviews below show where each one is strongest.

The best invoicing software for small businesses, reviewed

1. QuickBooks Online: best overall for accounting-led teams

QuickBooks Online is the best overall invoicing software for accounting-led teams because every invoice lands in the books your accountant closes. If your accountant already works in QuickBooks, that can settle the choice by itself.

List pricing on October 19, 2026: Simple Start $38 per month (1 user), Essentials $85 (3 users), Plus $140 (5 users), and Advanced $340 (25 users). A Free tier covers 1 user and up to two invoices a month, and Intuit lists unlimited invoices there if you qualify for and enable QuickBooks Payments.

Customers can pay with cards, ACH, PayPal, or Venmo without a QuickBooks account. Intuit lists 2.99% per invoiced card payment and 1% on ACH. When customers pay through QuickBooks, it records and matches the payment for you.

Pros

• Invoices live inside full accounting

• Recurring invoices, automated reminders, and automatic matching for payments made through QuickBooks

• Progress invoicing on Plus and Advanced for milestone work

Cons

• The Free tier caps you at two invoices a month unless you enable QuickBooks Payments

• The 1% ACH fee grows with invoice size

• User caps push growing teams up the plan ladder

Verdict: QuickBooks Online is the safe default when your accountant already works in QuickBooks and you want invoicing and the books in one place.

2. Rho: best for US-incorporated small businesses that want invoicing, ACH and domestic wire collection, and the business account in one platform

Rho is one of the best invoicing options for US-incorporated small businesses that want invoicing, ACH and domestic wire collection, and the business account in one platform, because invoices go out from the same Rho platform that holds your business account. It suits small businesses that would rather not run invoicing, payment collection, and their business account in three separate places.

Your customers pay through a payment portal on the invoice, by ACH, domestic wire, check, or card. Card payers can use a credit card, debit card, or Google Pay. They do not need a Rho account to pay you.

Here is the pricing. Rho Invoicing is free for Rho customers: $0 per invoice and $0 per month. Card payments cost 2.9% + $0.30 per card payment, which your business pays; your customer pays only the invoice amount, with no surcharge added.

There are $0 Rho fees on domestic ACH payments received (card payments cost 2.9% + $0.30 each, paid by the business). Pay-by-card is available to eligible Rho businesses, subject to Stripe verification and approval.

The Rho business account itself carries $0 monthly and per-user fees. Rho Invoicing is part of the Rho platform, so you open a Rho account to use it. Accounts are available to US-incorporated businesses, subject to approval.

Pros

• Invoicing, payment collection, and your business account in one platform

• Customers pay by ACH, domestic wire, check, or card (credit card, debit card, Google Pay)

• Customers do not need a Rho account to pay

• $0 per invoice and $0 per month for Rho customers (card payments 2.9% + $0.30, paid by the business), with $0 Rho fees on domestic ACH payments received

Cons

• Card processing fees (2.9% + $0.30 per card payment) are paid by the business, not passed to the customer

• Available to US-incorporated businesses, subject to approval

Verdict: Rho is one of the best choices for US-incorporated small businesses whose customers pay by ACH or domestic wire and that want invoicing and the business account on one platform. See how it works on the Rho Invoicing page.

3. Zoho Invoice: best free plan

Zoho Invoice is the best free plan for small businesses that want a long feature list at no monthly cost. Zoho's pricing page calls it free for all small businesses, and it lists quotes, recurring invoices, automated payment reminders, and a self-service customer portal.

The limits on October 19, 2026: up to 2 users, 3 projects, 500 invoices a year, and 2 organizations, with "Powered by Zoho Invoice" branding on your invoices. If you outgrow it, Zoho Books is the accounting step up, with a free plan under $50K in annual revenue (up to 1,000 invoices a year) and paid plans from $20 a month, or $15 billed annually.

Zoho lists multiple customer payment options on Invoice, but its pricing pages do not list processing fees. Check the fee for the payment method your customers use before you rely on it.

Pros

• Quotes, recurring invoices, reminders, and a customer portal at no monthly cost

• Time logging and expense tracking included

• A clear upgrade path to Zoho Books

Cons

• Capped at 500 invoices a year and 2 users

• Zoho branding appears on your invoices

• Processing fees are not published on the pricing pages

Verdict: Zoho Invoice is the best free plan for a small business that sends a few hundred invoices a year and wants more than the basics.

4. Wave: best for simple invoicing at $0 a month

Wave is the best invoicing software for simple invoicing at $0 a month, because its Starter plan lists unlimited estimates, invoices, bills, and bookkeeping records. There is a free mobile app, and estimates can take deposits.

Wave charges processing fees when customers pay online. On Starter, credit card payments cost 2.9% + $0.60 each (Amex 3.4% + $0.60), and bank payments cost 1% with a $1 minimum. Wave says approval to use online payments is subject to eligibility criteria. Customers can pay by credit card or bank payment.

The Pro plan is $19 a month, or $190 a year. It adds late-payment reminder automation, your logo and brand colors, removal of Wave branding, attachments, and reusable message templates.

Pros

• Unlimited invoices and estimates on a $0 plan

• Free mobile app

• Pro adds branding and automation for $19 a month

Cons

• Starter's card fee carries a $0.60 flat charge, double the $0.30 that Rho, FreshBooks, and Square Plus list

• Online payments are subject to Wave's approval

• Wave branding stays on invoices until you move to Pro

Verdict: Wave is a good fit for a very small business that sends a modest number of invoices and wants zero monthly cost to start.

5. FreshBooks: best for service businesses

FreshBooks is the best invoicing software for service businesses because it is built around billing for time and projects. Automated recurring invoices, automated late payment reminders, online bank transfers (ACH), and scheduled late fees are included on every plan.

List pricing on October 19, 2026: Lite $23 per month (5 billable clients), Plus $43 (50 clients), Premium $70 (unlimited clients), and a Select plan with no listed price. Extra users cost $11 a month each.

Customers can pay by credit card, ACH, Google Pay, or Buy Now Pay Later. FreshBooks Payments lists 2.9% + $0.30 per credit card transaction. FreshBooks also lists deposits on estimates and apps for desktop, tablet, and phone.

Pros

• Recurring invoices, reminders, and late fees on every plan

• Buy Now Pay Later as a payer option

• Deposits on estimates

Cons

• Lite is limited to 5 billable clients

• Extra users cost $11 a month each

• Plans cost more than the free tools above

Verdict: FreshBooks suits service businesses with a manageable client list that want reminders and recurring billing running without extra work.

6. Square Invoices: best for recurring invoices and estimates on a free plan

Square Invoices is the best invoicing software for recurring invoices and estimates on a free plan, because Square lists invoices and recurring invoices (daily, weekly, monthly, or yearly), estimates and contracts, and projects on it. None of these require a paid plan.

The Plus plan adds payment schedules and custom invoice templates. Square's help page lists these rates for Square Plus: 2.9% + 30¢ per online or invoice card payment, and 1% on ACH bank transfers with a $1 minimum and a $10 fee cap. The cap limits the ACH fee on larger invoices.

Free-plan processing rates are not covered here, so confirm them with Square before you commit.

Pros

• Recurring invoices, estimates, and contracts on the free plan

• ACH fee capped at $10 on Plus

• Card rate of 2.9% + 30¢ on Plus

Cons

• Payment schedules and custom templates require Plus

• ACH carries a 1% fee with a $1 minimum before the cap

• Free-plan processing rates are not covered in this guide

Verdict: Square Invoices is a strong pick for a small business that wants recurring invoices and estimates without a monthly bill, and that will move to Plus for the ACH cap. If you also want automated reminders and a customer portal on the free tier, Zoho Invoice lists both.

7. Xero: best for growing teams

Xero is the best invoicing software for growing teams: it is accounting software with invoicing built in, and its pricing suits teams that keep adding people, since Xero lists no per-user license fees.

US list pricing on October 19, 2026: Early $27 per month, Growing $59, and Established $97. Early lets you send quotes and 20 invoices; Growing and Established list no invoice limit. Automatic reconciliation is on Growing and Established.

Customers pay through a "Pay now" button on Growing and Established, by credit card, debit card, ACH debit, or Google Pay, through connected providers such as Stripe and GoCardless. Xero notes that fees apply for other payment methods without listing the rates on its invoicing page.

Pros

• No per-user license fees

• Reminders before and after the due date, on a schedule you set

• Automatic reconciliation on Growing and Established

Cons

• Early caps you at 20 invoices

• Online payments run through connected providers, and Xero notes fees apply for other payment methods

• Processing rates are not listed on the invoicing page

Verdict: Xero is a strong pick for small businesses with an accountant who prefers it, or a team that expects headcount to grow faster than revenue.

What does small business invoicing software cost? A $5,000 invoice example

On a $5,000 invoice paid by ACH, fees range from $0 Rho fees on domestic ACH payments received (card payments cost 2.9% + $0.30 each, paid by the business) to $50 on QuickBooks Online and Wave; paid by card, they run $145.30 to $149.50 on the tools that publish a rate.

Here is the breakdown, using each vendor's published rates on October 19, 2026. This is an illustration, not a quote.

Paid by ACH:

• Rho: $0 Rho fees on domestic ACH payments received (card payments cost 2.9% + $0.30 each, paid by the business)

• Square Plus: $10 (1% would be $50, capped at $10)

• QuickBooks Online: $50 (1%)

• Wave: $50 (1%)

Paid by card:

• Rho, FreshBooks, and Square Plus: $145.30 (2.9% + $0.30)

• Wave Starter: $145.60 (2.9% + $0.60)

• QuickBooks Online: $149.50 (2.99%)

Rho Invoicing is $0 per invoice and $0 per month; its card rate is the same 2.9% + $0.30 shown above, paid by the business, with no surcharge to the customer.

Zoho Invoice and Xero do not list processing rates on the pages we read, and FreshBooks' ACH fee is not covered here, so they are left out of the example.

The pattern is simple. Among the tools that publish a card rate, the cost lands within about $5 of each other on a $5,000 invoice, so card is close to a wash. ACH is where the tools separate, and the gap grows with invoice size. For the full fee breakdown, see our guide to invoicing software with the lowest fees.

How to choose invoicing software

Choose by four things: how many invoices you send, how your customers pay, what a typical payment costs you, and whether you need invoicing inside accounting.

Every pricing page looks reasonable on its own. These four questions are what separate the tools for a small business.

1. How many invoices do you send?

Caps matter at the low end. QuickBooks' Free tier is two invoices a month, Zoho Invoice is 500 a year, Xero's Early plan is 20 invoices, and FreshBooks Lite is 5 billable clients. Count your year before you pick a free tier.

2. How do your customers pay? Ask your five biggest customers, then pick a tool that accepts those methods on the invoice itself.

3. What does a typical payment cost you?

Run your average invoice through the $5,000 example above. If your invoices are small, the subscription decides it. If they are large, the ACH fee does. For tactics that shorten the gap between invoice and cash, see how to get paid faster on invoices.

4. Do you need invoicing inside accounting, or alongside it?

If your accountant lives in QuickBooks or Xero, invoicing there saves a step. If you would rather keep accounting where it already is and have invoicing sit with your business account, look at a platform like Rho.

Which invoicing software should you pick?

• Your accountant runs everything in QuickBooks: QuickBooks Online, best overall for accounting-led teams.

• You are a US-incorporated small business and want invoicing, ACH and domestic wire collection, and your business account in one platform: Rho.

• You want the most features at no monthly cost: Zoho Invoice.

• You send a modest number of invoices and want a $0 start: Wave.

• You bill for time and projects: FreshBooks.

• You want recurring invoices and estimates on a free plan, with the option of Plus's capped ACH fee: Square Invoices.

• You have an accountant who prefers Xero, or a growing team: Xero.

Your best tool is the one that matches how your customers pay. Start there, then compare price.

Ready to put invoicing and your business account in one place? Send your first invoice with Rho Invoicing. Rho accounts are available to US-incorporated businesses, subject to approval.

Still comparing? See our best invoicing tools for startups, invoicing software with the lowest fees, business bank accounts with free invoicing, and best invoicing software for B2B.