Updated 2026-01-28
Best Invoicing Software for Small Business
Invoices, reminders, and payment links.
Finance tools should reduce admin, not create it. The best choice depends on whether you need invoicing, bookkeeping, payroll, or budgeting. This page compares common picks and the situations where each one makes sense.
Note: we focus on practical trade-offs. If you already know the category, jump straight to the comparison table.
Quick picks
| Tool | Why it’s a good fit | Watch-outs |
|---|---|---|
| PayPal Best overall | Fast to start for payments; widely trusted by consumers. | Fees and holds can be frustrating for some businesses. |
| Xero Best value | Clean UI and strong for bookkeeping workflows, especially for small businesses. | Features and add-ons vary by region; verify your exact needs. |
| Gusto Best for teams | Strong payroll + HR basics for small businesses, especially in the US. | Region-specific; verify availability and compliance support. |
| Wave Best for beginners | Good if you want basic invoicing/accounting with low upfront cost. | Advanced features may be limited compared to paid suites. |
| Zoho Books Best for power users | Strong value if you already use Zoho products; solid automation. | Ecosystem is best when you stay inside Zoho. |
How to choose
- Start with the job to be done: what problem are you solving weekly?
- Setup vs simplicity: powerful tools often require configuration.
- Pricing reality: check seat limits, usage caps, and add-ons.
- Adoption: the best tool is the one your team actually uses.
Next steps
Once you’ve shortlisted 2–3 tools, test them with one real workflow (not a demo project). That usually reveals the right pick quickly.