Best Invoicing Software For Freelancers In 2023: Top 5 Tools To Cash in on Seamless Finances

As a freelance professional, you're adept at smoothly navigating through a variety of projects and meeting deadlines. In the midst of this exciting journey, there's a critical task that often doesn't receive the attention it deserves – managing your finances. 

But there's no need to worry, because we're about to introduce you to a transformative solution that will change the way you handle your financial management.

We’ve carefully curated a list of the best invoicing software for freelancers, which will 

help streamline your financial operations. Say farewell to the hours lost in spreadsheets, late-night calculations, and the frustrating search for misplaced receipts. 

We’ve already discussed the top 10  time tracking apps for freelancers, but with our pick of the best invoice tracking software, you’ll not only save time and stress but also impress clients with your process and workflow orchestration skills. These small touches are what separate the wheat from the chafe.

TL;DR:

• Discover top invoicing software for freelancers.
• Streamline finances and save time effortlessly.
• Benefits include accurate time tracking and polished invoices.
• Explore FreshBooks, Zoho Invoice, timegram, Bonsai, and Xero.
• Choose the best fit for your needs and boost your freelancing efficiency.

Read More: How Does Upwork Time Tracking Work? Is it Good Enough?

Benefits of Utilizing the Best Invoicing Software for Freelancers

Timely invoice payments are the caffeine kick that fuels freelancers' productivity engines. Now, let's explore the advantages that this exceptional software brings to freelancers:

Effortless Invoicing 

Imagine completing a project that consumed your creative energy, only to spend hours wrestling with invoices. With the best invoicing software, after finalizing a client's marketing campaign, you can instantly generate a professional invoice that accurately lists the services rendered. This streamlined process saves you time and ensures your work gets its due compensation.

Accurate Time Tracking 

You're juggling multiple writing assignments for various clients. Without proper time tracking, it's easy to lose sight of how much time you've dedicated to each project. The best invoicing software provides an integrated time tracking feature. When you complete an engaging blog post, you can immediately log your hours. This accuracy ensures that every client is billed fairly, even when tasks vary in complexity.

Polished Invoices 

After designing a captivating website layout, you need to send an invoice that matches the excellence of your work. The best invoicing software allows you to personalize your invoices. You can add your logo, choose elegant fonts, and match colors to your brand. Sending an invoice that's visually aligned with your professional identity impresses clients and underscores your commitment to quality.

Seamless Expense Management 

As a graphic designer, you're often sourcing various design assets. Tracking these expenses manually can become a labyrinthine task. With the best invoicing software, you can effortlessly upload receipts and categorize expenses. Whether it's a font purchase for a logo design or stock photos for a brochure, you're equipped to manage expenses efficiently, ensuring accurate tax deductions.

Boosted Productivity 

Balancing client communication, project deadlines, and financial administration can leave you drained. By adopting the best invoicing software, you delegate routine financial tasks to automation. After completing a social media campaign, instead of manually calculating hours, expenses, and tax figures, you can invest that time in brainstorming your next winning idea, elevating your overall productivity.

Top 5 Invoicing Software for Freelancers

Invoicing is a critical aspect of freelancing, and choosing the right software can greatly impact your productivity. Here are the top five invoicing software for freelancers that offer seamless financial management.

Software#1: FreshBooks

FreshBooks is a leading cloud-based accounting and invoicing software designed for freelancers, small businesses, and self-employed professionals. With its user-friendly interface and comprehensive features, FreshBooks streamlines financial management and enhances business efficiency. 

Key features and benefits 

Invoicing and Expense Tracking: Create professional invoices with customizable templates and automated recurring billing. Easily track expenses, upload receipts, and categorize expenses for accurate financial records.

Time Tracking: Keep track of billable hours by using the built-in time tracking feature. Convert tracked hours into invoices seamlessly, ensuring accurate client billing and project management.

Estimates and Proposals: Generate detailed project estimates and proposals to win new clients. Convert accepted estimates into invoices without the need for manual data entry.

Financial Reports: Access a range of financial reports, including profit and loss statements, balance sheets, and more. Gain insights into your business's financial health and make informed decisions.

Tax Filing: Easily report business income, categorize expenses, and collaborate seamlessly with your accountant, reducing errors and ensuring accurate tax preparation. Enjoy added convenience with accountant access available in higher-tier plans.

Pricing Plans and Options

FreshBooks offers flexible pricing plans to cater to various business needs:

Lite: Ideal for freelancers and solo entrepreneurs, Lite includes basic features such as unlimited invoicing and expense tracking. It's suitable for businesses with minimal accounting requirements.

Plus: This plan is designed for small businesses with additional team members. It includes all the features of Lite along with advanced options like time tracking, proposals, and estimates.

Premium: Offering more advanced features, Premium suits growing businesses with larger client bases. It includes all Plus features as well as automated recurring invoices and double-entry accounting.

Select: Tailored for larger businesses, Select offers custom pricing and advanced features like dedicated account managers and personalized training.

Integration with Time Tracking and Productivity Tools

FreshBooks integrates seamlessly with various time tracking and productivity tools, enhancing efficiency and accuracy:

Toggl: Sync Toggl's time tracking data with FreshBooks to streamline billable hours and project management.

Asana: Connect Asana to FreshBooks for better project coordination, allowing you to track time and manage tasks seamlessly.

Trello: Integrate Trello to FreshBooks to transform task cards into billable entries, simplifying project-related billing.

User Reviews and Ratings

FreshBooks consistently receives positive user reviews and high ratings for its user-friendly interface, comprehensive features, and excellent customer support. Users often praise its invoicing capabilities, time tracking integration, and insightful financial reporting.

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Software#2: Zoho Invoice

Any list of best invoicing software for freelancers is incomplete without this tool. Zoho Invoice stands out as a robust and free invoicing software for freelancers because there are no hidden fees. You’ll have to pay for any transaction fees when clients pay an invoice. Zoho Invoice lets you connect to some of the biggest payment gateways, such as Authorize.net, Stripe, Braintree and ACH Payments. You can also use PayPal.

You can use Zoho Invoice to track your projects, including billable hours, and convert estimates and projects into invoices. 

Key Features and Benefits

Payment Gateway Compatibility: The software supports major payment gateways, including Authorize.net, Stripe, Braintree, ACH Payments, and PayPal. This extensive compatibility streamlines the payment process for both you and your clients.

Project Tracking: Zoho Invoice facilitates project management by allowing you to monitor billable hours and convert project estimates seamlessly into invoices. This aids in maintaining accurate records and simplifies the billing process.

Client Portal: The software offers the convenience of a client portal where clients can access estimates, invoices, and approve them. This enhances communication and collaboration, ensuring a smoother client interaction.

Automatic Payment Reminders: Zoho Invoice's automatic payment reminders feature assists in maintaining a steady cash flow. By reminding clients about pending invoices, you increase the likelihood of receiving timely payments.

Pricing Plans and Options

Zoho Invoice primarily offers a free invoicing software option. While the free plan is ideal for freelancers and businesses with a limited client base, it comes with certain limitations:

Free Plan: This plan provides access to essential features like invoice creation, client management, and payment gateway integration. However, it restricts users to a single account and limits clients to five. Additionally, you can only send up to 1,000 invoices annually.

Integration with Time Tracking and Productivity Tools

Zoho Invoice connects with time tracking and productivity tools, enhancing your efficiency and accuracy. Its payment gateways include Stripe, PayPal, Razorpay, PayUmoney, among others.

Zoho Invoice seamlessly links with Zoho Analytics, enabling advanced report creation for insightful business understanding. It also integrates smoothly with Zoho Books, forming a comprehensive accounting platform. Moreover, Zoho Invoice offers a wide range of integrations, encompassing third-party apps like Dropbox and Google Drive, as well as Zoho apps including Zoho Projects, Zoho People, and Zoho Flow through subscription options.

User Reviews and Ratings

Users of Zoho Invoice have expressed positive feedback for its user-friendly interface, transparent pricing, and integration capabilities:

User-Friendly Interface: Many users appreciate the intuitive interface, making it easy to create invoices, manage clients, and track projects.

Transparent Pricing: Zoho Invoice's clear pricing structure, particularly the absence of hidden fees, has garnered praise from users seeking budget-friendly invoicing solutions.

Integration Capabilities: The integration with popular payment gateways and time tracking tools has been well-received by users who value a streamlined workflow and enhanced productivity.

While Zoho Invoice's limitations might not suit larger businesses, freelancers and small-scale operations benefit from its features and straightforward pricing model.

Software#3: timegram

timegram is a robust time tracking and project management solution designed to streamline the invoicing process and enhance project management efficiency. It offers a suite of features that empower businesses and professionals to accurately track billable and non-billable hours, generate invoices, and optimize resource management. 

With its user-friendly interface and integration capabilities, timegram aims to improve accuracy, save time, and foster better customer relationships.

Key Features and Benefits

Automated Time Tracking: timegram provides automated time tracking functionality, eliminating the need for manual logging of hours. This feature accurately records billable and non-billable hours spent on tasks, ensuring precision and reducing the risk of errors.

Effortless Invoicing: The solution seamlessly converts tracked hours into accurate invoices, simplifying the invoicing process. This feature saves time and minimizes the chances of inaccuracies that can occur when creating invoices manually.

Transparency and Trust: The solution's emphasis on transparency helps build strong customer relations by eliminating discrepancies in invoicing. This boosts trust and credibility with clients.

Privacy-Focused Compensation: timegram is unique in its approach to balancing fair compensation with employee privacy concerns. This approach fosters a positive work environment by respecting individual privacy while ensuring appropriate compensation.

Pricing Plans and Options

Free Forever Plan: The free plan offers access to all the features of timegram, making it suitable for freelancers and small teams. It easily qualifies as one of the best free invoicing software for freelancers.

Paid Plan: The paid plan is priced at $8 per month per user. It provides advanced functionalities and is ideal for businesses with more complex project management needs.

Integration with Time Tracking and Productivity Tools:

timegram integrates seamlessly with various time tracking and productivity tools, like Jira, Trello, and QuickBooks, enhancing its functionality and adaptability to different workflows. This integration ensures a holistic approach to managing tasks, time, and projects.

User Reviews and Ratings

Users across various industries have expressed their satisfaction with timegram, praising its unique privacy-first promise and its ability to simplify time tracking and invoicing processes. Many reviewers highlight how the tool's emphasis on user privacy sets it apart from other solutions, fostering a sense of trust and security. The automated time tracking and effortless invoicing features have garnered positive feedback for saving time and ensuring accurate billing. 

Interested in learning more? Watch timegram’s product walkthrough video and find out all about its online time tracking and invoicing.

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Software#4: Bonsai

Bonsai is a comprehensive platform designed to empower freelancers and small businesses in managing their operations efficiently. With a range of pricing plans tailored to different needs, Bonsai offers solutions for everyone from beginners to established businesses. Its suite of tools includes customizable templates for invoices, proposals, and contracts, as well as features like scheduling, time tracking, and client relationship management. 

Key Features and Benefits

Autopilot Business Management: Bonsai provides resources that help freelancers manage their businesses more efficiently, potentially automating certain aspects.

Invoice Templates: The platform offers a collection of over 100 invoice templates that can be customized and used by freelancers.

Data-Driven Insights: Bonsai utilizes data from its user base to offer insights that can help freelancers make informed decisions about payment schedules, pricing strategies, and more.

Contract Templates and E-Signatures: Bonsai includes templated contracts and legally binding e-signatures, ensuring freelancers are protected in their client engagements.

Pricing Plans and Options

Starter Plan - $17/month

For freelancers and beginners.

Includes templates, invoicing, scheduling, and more.

Up to 5 project collaborators.

Professional Plan - $32/month 

Growing businesses.

All Starter features plus branding, automation, integrations.

Up to 15 project collaborators.

Business Plan - $52/month

Small businesses and agencies.

All Professional features plus subcontractor management, talent pool, team seats.

Unlimited subcontractors and collaborators.

Integration with Time Tracking and Productivity Tools

Discover how Bonsai can enhance your workflow by integrating with various software and services. These integrations can help streamline your processes, improve efficiency, and provide a more comprehensive experience. Here are some of the notable integrations available with Bonsai:

• ClickUp
• Zapier
• Google Drive
• Gmail
• Google Sheets
• Trello
• QuickBooks Online
• Google Calendar
• Calendly
• Slack
• HubSpot CRM
• Xero
• QuickBooks Online Advanced

User Reviews and Ratings

Many reviewers have praised Bonsai for its well-designed and user-friendly platform, making it easy to manage finances, invoices, contracts, and track time. Users appreciate the software's simplicity and ease of use, stating that it makes their freelance process streamlined and efficient.

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Software#5: Xero

Xero's accounting software has garnered significant acclaim among small businesses, freelancers, and entrepreneurs. With its cloud-based platform and diverse features, Xero's invoicing functionality empowers you to design and personalize invoices, while also facilitating direct payments through credit cards, debit cards, or bank transfers embedded within the invoice itself. 

Key Features and Benefits

Xero presents an array of features that cater to businesses of varying sizes. These include:

Invoicing and Billing: Users can create, customize, and send invoices to clients, along with accepting credit card, debit card, and bank transfer payments.

Expense Tracking: Efficiently monitor business expenses, categorize them, and generate comprehensive expense reports.

Bank Reconciliation: Seamlessly reconcile bank transactions with accounting records, ensuring accuracy in financial tracking.

Payroll Processing: Businesses can manage payroll, including tax calculations and direct deposits for employees.

Multi-User Collaboration: Xero allows multiple users, such as accountants or team members, to collaborate on financial tasks.

Pricing Plans and Options

Xero offers tiered pricing plans catering to different business stages:

Starter Plan: $25 per month. This plan is suitable for sole traders, new businesses, and self-employed people.

Standard Plan: $40 per month. This plan  is suitable for growing small businesses.

Premium Plan: $54 per month. This package is suitable for established businesses of all sizes.

Integration with Time Tracking and Productivity Tools

Xero integrates seamlessly with various time tracking and productivity tools. Some notable integrations include TSheets, Harvest, WorkflowMax, and Deputy, facilitating streamlined project management and enhanced productivity.

User Reviews and Ratings

Xero's accounting software has garnered high ratings from its user base. With a user-friendly interface and clean design, it has stood out as a customizable solution for businesses. Users appreciate its interface and highly customizable features. Xero's pricing starts at $25 per month, and it offers unlimited users on all plans. A 30-day free trial allows users to explore its features before committing.

How to Choose the Best Invoicing Software for Freelancers

Freelancers often rely on invoicing software to streamline their billing processes and manage their finances effectively. When selecting the right invoicing software, several essential factors should be taken into account to ensure it meets your specific needs. Here are some key considerations:

Ease of Use and User Interface 

The software should have an intuitive and user-friendly interface, allowing you to quickly navigate and perform tasks without a steep learning curve. A simple and well-designed interface can save you time and frustration.

Customization Options for Invoices and Templates

Personalization is crucial to maintain your professional branding. Look for software that enables you to customize invoice templates with your logo, colors, and relevant fields, ensuring a consistent and polished appearance.

Payment Options and Integration with Payment Gateways 

The ability to offer various payment methods to your clients can expedite payment processing. Choose software that integrates with popular payment gateways - such as PayPal, Stripe, Square, Payoneer, Wise (formerly TransferWise) and Shopify Payments - making it convenient for clients to pay you securely and promptly.

Reporting and Analytics Features

Effective financial management requires insights into your income, expenses, and outstanding payments. Opt for software that provides reporting and analytics tools to help you track your earnings, monitor payment statuses, and gain a clear financial overview.

Customer Support and User Community 

Inevitably, you may encounter questions or issues while using the software. Reliable customer support can be a lifesaver during such times. Additionally, having access to a user community, forums, or resources can provide valuable tips and solutions from fellow freelancers.

Wrapping up…

So, this was our pick of the best invoicing software for freelancers. Remember that the invoicing software you choose should align with your specific freelance needs and preferences. Take your time to explore different options, perhaps even trying out trial versions, to determine which software best fits your workflow and requirements.

Explore the power of timegram, where productivity meets precise time tracking and seamless invoicing. Revolutionize your workflow today by signing up for free!

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FAQs

What do freelancers use for invoices?

Freelancers often use invoicing software to streamline their billing process. These digital tools help you create professional invoices, track payments, and maintain records with less hassle than manual methods. So, wave goodbye to paper trails and embrace the digital invoicing wave!

Which software is best for making invoices?

Choosing the right invoicing software is like finding the perfect sidekick for your freelancing journey. Popular options include FreshBooks, QuickBooks, and Xero. Just remember, the best software is the one that makes invoicing feel like a breeze and lets you focus on your actual work – saving the world, one invoice at a time!

Can I issue an invoice as a freelancer?

Certainly! As a freelancer, it's essential to issue invoices for the services you provide. An invoice is a formal document that outlines your work details and costs. It helps establish a clear agreement, tracks earnings, and maintains accurate records. Include your and your client's information, invoice number, service description, subtotal, total amount, payment due date, payment methods, notes, and terms. Professional invoices reflect your professionalism and aid in effective financial management.