Top 10 Free Online Invoicing Software Tools: Which One Is Best for You?

Is your process for invoicing your clients as streamlined as it could be? Nothing is more important in business than billing promptly and staying on top of overdue invoices. Keep cash flowing by selecting the best invoicing software tool for your specific needs.

Choosing which solution to use is far more complicated than most realize. There are over 50 online invoicing software tools and apps suitable for small businesses. We spent days identifying and analyzing, and narrowed them down to this list of the Top 20 invoicing software tools that have a completely free version. (Not just a free trial - free indefinitely.)

What Type of Invoicing Software Should You Choose?

Invoicing tools vary from a simple online form you fill in, to tools intended specifically for invoicing. They are built into full accounting systems and also into small business management suites. Some integrate with other solutions you may already be using and others do not.

Deciding what features you really need and then make a list; this will greatly speed up your selection process. Here are the features most frequently sought:

• Invoicing
• Accounting (billing, payables, profit and loss, taxes)
• Time and expense tracking
• Marketing, email, social media, or project management capability
• Integration with payment processors
• Multilingual/multiple currencies
• Additional users/accountant access
• Recurring invoices
• Tracking payment; automatically sending reminders

Deciding which features are most important to you will eliminate many of the available solutions and allow you to hone in on the few that deliver all of the capabilities your business needs. Be sure to compare the number of customers, projects, and invoices per month each solution permits in their free accounts, and also their paid tiers.

Top 10 Free Online Invoicing Software Tools

To make your choice easier, we first identified the top 10 tools based on estimated traffic to each site, and then we wrote a short description of each solution, including the type of support each offers in "Top 10 Free Online Invoicing Platforms." You can get more information on each of the tools at the link.

In this post, we've organized the 10 invoicing software tools by the type of solution they are. This should make your evaluations go faster and easier.

Each of these software tools offers a totally free tier, but you will have to choose wisely; you may have to upgrade to get all the capabilities you need. If you handle a lot of invoices, you may find that the ability to track payments, automatically record payments, and send automated reminders are highly desirable features for reducing outstanding invoices that negatively impact cash flow and profitability.

Be sure to compare features and pricing -- noting add-on costs -- with a long-term view. You will want the solution you choose to be able to grow with your business while keeping costs manageable.

Invoicing and Time Tracking

These are invoicing tools specifically for invoicing and time tracking:

• Due.com focuses on making time tracking efficient with a pop-out timer widget. Attractive templates make it simple to create professional-looking invoices, and an invoicing management system allows you to track the status of invoices with a calendar summary, performance graphs, and reports. The free tier allows for customized invoices and two saved templates; free accounts can only send two invoices per month, but upgrading to unlimited invoices is only $3/month.
• Hiveage (formerly Curdbee) is an invoicing system. Hiveage charges per feature; time tracking is only available for an additional $4.95/mo. Recurring billing and adding additional users also incur a charge. (The company offers discounts for combining multiple features.) Unlimited customers and invoices can be created in the free accounts. Google Wallet and PayPal Standard are included at no charge. Additional payment gateways are available for $1.95/month per gateway.
• (The) Invoice Machine can be used for sending invoices and estimates and time tracking. Even free accounts automatically can send recurring invoices, thank yous and reminder emails, but free accounts only permit sending a maximum of three invoices and three estimates per month. Free accounts can have one user and support multiple languages and currencies. Invoices may be customized with your logo and colors and attached to emails as a PDF. Integrates with Basecamp, PayPal and Authorize.net. Support is via email.
• Nutcache allows you to send estimates and unlimited invoices in the free advertising-supported tier; however, only the pro version will send recurring invoices or track unpaid invoices. Support in the free version is by email only with a seven-day turnaround time.
• Ronin free accounts support one contact per client, and recurring invoicing using multiple currencies, time, and expense tracking. Businesses also can add logos to customizable templates. Ronin was acquired by GoDaddy in October 2013. The site does not appear to mention how the company provides support; however, there is an email contact for sales.

Complete Accounting Systems

These systems are not only capable of invoicing; they are complete accounting systems for small businesses:

• Sage One supports unlimited invoices, quotes, analytics, reporting, income and expense tracking, and the ability to accept online payments. Even free accounts include unlimited support via toll-free phone, chat, email, and a Knowledge Center. All accounts are updated and backed-up automatically.
• Wave Accounting is a complete accounting system. Unlimited invoices can be sent with the free tier. To receive live and chat support costs $19 per month, or you can pay $19 per month for an upgrade that allows payroll management and includes live and chat support.

Business Apps

• Apptivo offers apps for running a small business. The 40+ standard apps can be accessed by up to three users in a free account; paid accounts are required to use email, Google, and mobile apps. Solutions include invoicing, CRM, project management, help desks, procurement, and field service. If you need more capability than is available in the 40+ standard apps, premium accounts are $10 per month. Support (24/7, M-F) is offered in the Ultimate $25 per month package.

Client Engagement Platform

• vCita is primarily used for live chat and for allowing site visitors to schedule their own appointments. vCita's free version has a limited invoicing function primarily intended for collecting payment for consulting appointments. Free accounts cannot customize invoices or automatically send emails and only have forum support.

Invoicing Only

• CheddarGetter focuses on recurring billing and invoicing subscriptions. It offers a free API for developers. Unlike the other solutions mentioned, CheddarGetter is not used for time tracking or accounting. Free accounts support fully customizable, brandable email templates sent from the client's email address through CheddarGetter's system; but this is not the solution for businesses sending unique, non-recurring invoices. It is intended for businesses that charge monthly fees.

Making the Best Choice

Now you should have a clearer idea of the types of software that have invoicing capabilities. You will need to decide whether you want a full accounting system, a business management platform that includes marketing tools, or just a way to track your time and send estimates and invoicing.

By dividing these top ten solutions into categories, we hope we have made the task of choosing the right system for your business easier for you. Note: these are not all of the possible choices; we are continuing to research and will publish more of our findings in the future. If you have an immediate need for a more comprehensive list or would like to share your experiences with any invoicing solution, please leave a comment.