Best Billing and Invoicing Software of 2026

What you need to know about billing and invoicing software

What is billing and invoicing software?

Essential features of billing and invoicing software

Benefits and competitive advantages of using billing and invoicing software

How to choose the best billing and invoicing software for your business

Software related to billing and invoicing

More resources for your billing and invoicing journey

What you need to know about billing and invoicing software

Billing and invoice software is used in various industries. Among the 939 businesses who called our advisors in the past year for software purchasing guidance and specifically requested billing and invoicing functionality in their solution, the majority were from the accounting industry, followed by maintenance and field service, then consulting. [1]

Due to the range of industries served, most vendors offer customizable systems that can support various business models, pricing structures, and payment types (e.g., ACH payments, recurring payments). Features can also vary significantly based on the organization the software is meant to serve.

For example, it’s common for law firms to bill for the time spent working on a project. A manufacturing company, on the other hand, may charge its clients upon the delivery of goods or tangible items.

Because this software has to be able to serve so many different types of users, there are a lot of options on the market today. To give you an idea, we feature unique profiles for 877 different billing and invoicing products on our site today, and we have more than 10,000 reviews from real users of this software on our site. 

In addition to the number of options available, you’ll also want to consider pricing when selecting your billing and invoicing system. Most of these products are billed on a subscription basis and charge each month. Products are generally priced according to tiers, with the basic group offering only the essential features, the premium offering a few more options, and the advanced offering everything. You can expect to pay an average of $32 for basic, $141 for premium, and $259 for advanced. [3]

Whether you’re a first-time buyer or you’re looking to replace your existing billing and invoicing software, you’ll want to make sure you as potential vendors a few basic questions before proceeding: 

• What features and integrations does the software offer? Make sure the specific features available fit your specific needs, and the product integrations match your existing software stack to allow for an easier transition. 

• How scalable and customizable is the software? Will this product be able to grow with your business? Ask about customization options and the ability to handle increased transaction volumes as your company expands. 

• What kind of customer support and training do you provide? Ask about things like support channels to understand how you can reach out if you have a question as well as response times. Additionally, ask about training resources or onboarding assistance to ensure your team can effectively use the software from the start.

In this article, you’ll find information about what to look for when researching billing and invoicing software, as well as a step-by-step guide for selecting the right software. We’ll also share insights and advice from our accounting advisors, Eric Franco and Chris Soltani, who have a combined 18 years of experience helping businesses find the right accounting software.

What is billing and invoicing software?

Billing and invoicing software organizes and automates all of the payment collection processes. It helps ensure timely payment collections, tracks multiple invoices at a time, flags all unpaid invoices, and reduces manual data entry errors. 

Billing and invoicing software is available as a standalone system that will only be able to handle tasks specifically related to invoice creation and management or as a feature within a comprehensive accounting software package. Most modern accounting software includes integrated billing and invoicing capabilities as a core function, enabling users to create and send invoices directly from their accounting system. However, these larger systems will be more expensive than standalone products, so users must consider budget before deciding which option is best for them.

Essential features of billing and invoicing software

Before you start considering different billing and invoice software products, it’s crucial to know which features you must have in your final choice. Some features in these systems are considered “core,” meaning you can expect to see them in every product on the market. Other features are considered “common,” and may or may not be included in every product you consider.

Core billing and invoicing features

Common billing and invoicing features

Benefits and competitive advantages of using billing and invoicing software

Over his 12 years of experience talking to businesses seeking accounting software, Chris Soltani has identified a common pattern: “The common theme is a lot of these buyers that we speak with, whether they’re in construction or architecture or any other industry, typically start out on a very basic system, like spreadsheets for example. And then after a couple of years, they just realize they need something more industry-specific.”

Certainly, having the tools that you need to do your specific job is one of the biggest advantages of using a dedicated billing and invoicing system. In addition to Soltani’s years of experience, we’ve analyzed our own data from thousands of reviewers to understand what other benefits users see when using billing and invoicing software:

• Small business management: Users have a lot of positive things to say about their ability to manage their small to mid-sized businesses using this type of software. Many comment on how much their companies have been able to grow thanks to the use of dedicated billing and invoicing software. 

• User interface: Reviewers are overall pleased with the user experience of these software products, often commenting on how intuitive these systems are to navigate. This helps businesses better understand and utilize the software, as well as clients better manage making online payments. 

• Expense tracking: Users really appreciate how much time they save by having an automated expense tracking feature that is simple to use. They also note that this tool helps them stay organized and maintain accurate records, which can make tax time a lot less stressful. 

• Transaction security: Security is a vital factor anytime businesses deal with financial matters or clients are concerned about credit card information. Fortunately, plenty of reviewers are happy with the security measures built into their billing and invoicing tools.

How to choose the best billing and invoicing software for your business

1. Define your requirements

Before you start collecting information about potential vendors, you must consider your own needs. It’s best to do this step at the beginning so you can limit how influenced you are by external factors. 

Start by speaking to the people on your team who will actually be using this software, and find out what problems they have in their day-to-day that they hope the new system will solve. Write down a list of the pain points you’re currently facing, so you can bring these specific questions up when you speak with potential vendors to find out how their products would help alleviate them. 

Next, come up with a concrete range for your budget. Consider what you’re currently spending, how many seats you’ll need for the new system, whether you’d like to pay monthly or annually, and the features you absolutely need versus those that would simply be nice to have. 

Finally, make a list of all the existing software your new billing and invoicing system will need to integrate with. This will ensure a smooth transition to your new system. 

Once you’ve gathered all of this information, you’re ready to start considering vendors. 

2. Make a shortlist of products

In this step of the process, you’ll come up with a list of billing and invoicing vendors you’re interested in speaking to. You may come up with names for this list based on a lot of different resources, such as any products you or your team have used in the past, products recommended by colleagues in your field, word of mouth, or even a quick Google search. 

If you want to lean on user experience, our billing and invoicing FrontRunners list is an excellent option for narrowing down your search. Alternatively, you can reach out to our advisors to chat about all of the requirements you came up with in step one. At the end of your phone call, you’ll receive a list of products that fit your needs. 

Regardless of how you come up with this shortlist, the end result should be between 3 and 5 vendors you want to learn more about. From here, you’ll begin your outreach. 

3. Pick your best option

You’ll call and set up demos with each of the products on your shortlist so you can actually see how their systems are laid out. Remember that these are sales pitches, so the representatives you’ll be speaking with want you to buy their products. Don’t make any decisions until you’ve had a chance to explore all of the products on your shortlist—that way you can accurately compare the different options. Also, if any vendors on your list offer free trials, you should strongly consider taking them up on it. 

Now is also your opportunity to ask all of the questions you’ve come up with so far. A few important things to get clarity on at this stage include:

• Pricing: How is this product priced?

• Feature availability: What features are available in each tier of this product? Can you upgrade at any time? 

• Scalability: How will this product grow with your company? Will the cost go up if you hire more employees?

• Security: What security measures do vendors take to protect your financial data and that of your clients?

Once you’ve met with every vendor on your shortlist and had an opportunity to test the product and have all of your questions answered, you can choose the billing and invoicing software that you feel the most comfortable and confident using. 

Software related to billing and invoicing

During your research for billing and invoicing software, you may come across other types of software that are closely related in functionality. Some of those systems may include: 

• Accounting software: Generally, accounting software includes larger financial management systems that encompass billing and invoicing but also handle many more accounting tasks, such as budgeting and forecasting, inventory management, fixed asset, and even payroll. You may decide you need a larger accounting system with built-in billing and invoicing features but be prepared to pay more for these systems than you would for standalone billing and invoicing software. 

• Accounts receivable software: This is a tool designed to manage the process of tracking and collecting payments owed by customers. It automates tasks such as invoicing, payment reminders, and cash flow monitoring, helping businesses efficiently manage outstanding debts. By integrating with other financial systems, like billing and invoicing, it enhances accuracy and provides real-time insights into accounts receivable performance.

• Debt collection software: Much like billing and invoicing, debt collection software is a specialized tool (often a feature in larger accounting systems) designed to automate the recovery of overdue payments from customers. It helps businesses track delinquent accounts, manage communication with debtors, and comply with legal regulations. 

• Expense report software: This software automates the process of submitting, approving, and reimbursing employee expenses. It streamlines expense management by allowing users to easily track, categorize, and report expenses. The software often integrates with accounting systems for easier overall financial management.

• Time and expense software: This software helps businesses track employee work hours and associated expenses, making billing and reimbursement much simpler. It allows users to log time and expenses in real time, often integrating with payroll and accounting systems for accurate financial management.

More resources for your billing and invoicing journey

• 7 Top-Rated Free Billing and Invoicing Software

• How To Close Your Books Faster and More Accurately

• How Automation Is Transforming Account Reconciliation for Small Businesses

• A Guide to Billing and Invoicing Software Pricing Models

About our contributors

Author

Lisa Morris is an associate principal analyst at Software Advice, covering the healthcare and medical industry, with a focus on technologies impacting independent practices and mental healthcare, such as electronic medical records and practice management tools.

Lisa’s research and analysis is informed by more than 15,000 authentic user reviews on Software Advice and over 20,000 interactions between Software Advice software advisors and medical software buyers. Lisa also regularly analyzes market sentiment by conducting surveys of medical practitioners and administrators so she can provide the most up-to-date and helpful information to small and midsize businesses purchasing software or services.

She presented her research on medical wearable devices at the 2022 Sensors Summit in La Jolla, California, and also appeared on the Health Innovation Matters podcast with Logan Plaster. Her work has been featured in multiple publications, including Becker’s Hospital Review, Healthcare IT News, and AP News.

Editor

Caroline Rousseau is a senior content editor at Software Advice.

A former content analyst, Caroline has, for the past five years, built, written, and edited research reports about technological trends, opportunities, and challenges with an SMB audience in mind. Her content has been featured in French Tier 1 media including Le Monde, L’Express, and Le Figaro, among other publications.

Her previous experience as a graphic designer, translator, and LQA specialist in various industries converged into a skill set that allows her to create compelling content about today’s business matters. Caroline’s personal interests include literature and art and she has a passion for Albert Camus, graphic novels, and drawing.

Advisors

Eric Franco is a senior advisor. He joined Software Advice in 2019, and he is based in Austin, TX.

Eric works directly with small business leaders to connect them with best fit software providers. He assesses the technology needs of small businesses seeking accounting, manufacturing, learning management, and supply chain software through one-to-one conversations and provides a short list of potential matches.

His favorite part of being a software advisor is hearing the sense of relief in a stressed buyer’s voice when they realize he can help them find the right software for their needs.

Chris Soltani is a senior advisor. He joined Software Advice in 2013 as a software advisor, and he is based in Austin, TX.

As part of the software advisor team, Chris helps accounting, project management, and supply chain industry professionals find budgeting, collaboration, inventory management, and billing and invoicing tools. He provides a short list of personalized technology recommendations based on budget, business goals, and other specific needs.

Chris’s favorite part of being a software advisor is truly helping buyers overcome challenges when they’re researching the hundreds of software options online.

Sources

• Software Advice advisor call notes: Findings are based on data from telephonic conversations that Software Advice’s advisor team had with small-to-midsize businesses seeking billing and invoicing tools. For this report, we analyzed phone interactions from January 10, 2024, to January 10, 2025. Read the complete methodology.

• Software Advice reviews data: Software Advice reviews are collected from verified users for individual software products. For this report, we analyzed reviews from the past year as of the production date. Read the complete methodology.

• Software Advice software pricing data: Only products with publicly available pricing information and qualified software products within the category, as of January 2024, are included in the pricing analysis. Read the complete methodology.