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7 Best Online Invoicing Tools For Digital Agencies

Online invoicing tools often play an important role in the daily administration of businesses.

As more businesses take on a digital role, it is becoming increasingly important to automate as many tasks as possible if you wish to grow in the long-run.

According to a recent HubSpot Research survey of 400 small and midsize businesses, 50% are paying for their invoicing software. Of this 50%, 12% are paying over $100 a month.

Finding an affordable, dependable invoicing solution for the long-run is more important now than ever before. It can be one of the ways your business can make more money, save more time, and increase annual revenue.

As a finance expert and owner of my own personal finance blog, I have used various tools to manage finances. This article should give you a comprehensive overview of some of the best invoicing tools I have come across so far.

The Best Online Invoicing Tools List

Here’s a shortlist of the best online invoicing tools:

Invoicing Software FAQs

What is invoicing software?

Invoicing software is any tool that helps you create and send bills for products or services that you have provided to your customers. Depending on the software you use, you will be able to send an invoice to anyone online, through email, or even via post in some cases.

The software will normally include a range of ready-made templates that you can choose from.

The great part about invoicing software is it optimizes business functionality and makes sure businesses get paid faster and with more ease.

Finding the right invoicing software for your needs largely depends on whether you own a freelance business, are part of an agency, or are running a small business. The tools I have mentioned below are some of the best options for digital agencies in particular.

What is the best free invoice software?

The best free invoice making app, in my opinion, has to be Wave. The software has extremely customizable templates, is easy to use, and lets you create unlimited invoices.

You can also create recurring bills for repeat customers that serve as a passive income source- this feature works well for subscriptions or monthly payments for services you offer.

After this you can even choose to connect your invoices to the Wave accounting software. The software also has a free app that is available on the Play Store or the Apple app store.

What information should you include in an invoice?

An invoice should ideally include all or most of the following information-

  • A unique invoice number that you can refer to in the future.
  • Your company name (or your name if you are a solopreneur).
  • An address you can be contacted at in case of a dispute.
  • The date that you provided the product or service and the date of the invoice.
  • Description of each good/service you are billing the customer for along with the relevant cost.
  • At the end of the invoice will be the total amount that needs to be paid.

Criteria

What do I look for when I am selecting an online invoicing tool?

Here are a few features that I think any tool should include:

  1. Software should be able to calculate automatically – Any invoicing software you use should have the ability to calculate your total and deduct any discounts or coupons automatically.
  2. The ability to change pricing plans – There is a very good chance your business may need to switch a customer’s pricing plans while still keeping track of their purchase history with the company.
  3. Multiple template styles – Having multiple templates to choose from and the ability to customize your invoice with brand colors or the business logo is a must.
  4. The ability to add discounts or coupons – For most digital marketing agencies, the ability to give a customer a discount or let them use a certain coupon code is part of their business model. Your invoice software should allow you to do this.
  5. Notifications – The added feature of email/mobile notifications when an invoice has been paid, rejected, or edited is always helpful.
  6. Affordable – No one wants to waste hundreds of dollars every month on any tool. No matter how many awesome features a tool may have, I always look at whether it makes financial sense for me to be paying that amount every month.

Online Invoicing Tools Key Features

These are a few features that all or most of the tools I will cover include:

  • Recurring Billing
  • Account Management
  • Customizable Templates
  • Multiple Currency Setting

Overviews Of The 10 Best Online Invoicing Tools

Here’s a brief description of each of the online invoicing tools on my list that should help you narrow down on the right option for you. I have also included pros, cons, costs, and a link to each service.

FreshBooks logo - 7 Best Online Invoicing Tools For Digital Agencies
  • 30 days free trial
  • From $15/month

1. FreshBooks – Best all-purpose invoicing tool

FreshBooks screenshot - 7 Best Online Invoicing Tools For Digital Agencies

Freshbooks has some of the most customizable invoicing templates available. Their dashboard is one of the best in the game and you will have even more fun watching money come in.

FreshBooks is the all-in-one solution for your accounting and financial needs. It is the digital answer to a boatload of paperwork and it has some of the best features you could ask for.

The software is most suitable for entrepreneurs or teams that want to grow their business and streamline their invoicing needs. You can expect to see features like online payment options (ACH and credit cards), late payment reminders, and automated invoicing.

Pros

  • You can try FreshBooks for free for a period of 30 days.
  • The premium plan that has a subscription cost of $50 a month allows you to bill up to 500 clients and send out unlimited invoices. This option is, in most cases, perfect for digital agencies.
  • Collaborative project tools and time tracking services make it perfect for remote digital agencies that want to stay connected with miles between them.
  • The FreshBooks invoicing software allows you to customize your invoices, add due dates, offer discounts, and even calculate taxes.
  • You will instantly be updated with a notification when your invoice has been paid.

Cons

  • There is no free option to take advantage of beyond the 30-day trial.

Costs

FreshBooks’ pricing starts at $15 a month which allows you 5 billable clients and unlimited invoices. There is also a Plus plan for $25 a month with 50 billable clients and a Premium plan for $50 a month with 500 billable clients. For each plan, you will have to pay an additional $10 for every team member you add.

Apart from this, you can also ask for a custom quote if you want custom service (or a higher number of billable clients). You can test run their software with their 30-day free trial.

QuickBooks logo - 7 Best Online Invoicing Tools For Digital Agencies
  • 30 days free trial
  • From $70/month

2. QuickBooks – Best online invoicing tool for low transaction fees

QuickBooks screenshot - 7 Best Online Invoicing Tools For Digital Agencies

QuickBooks is FreshBooks’ biggest competitor so you will see a lot of similarities in their services. The differences are subtle and for a lot of people it comes down to preference.

QuickBooks allows you to send invoices and accept payments online. One of their key features is that they allow you to separate your business and personal expenses. It is considered one of the best accounting and bookkeeping options for small businesses with its user-friendly dashboard and a never-ending list of features.

Pros

  • Extremely thorough contact records and transaction reports. You will not find a service that does reporting as well as QuickBooks does it.
  • The QuickBooks’ project profitability feature allows you to see how profitable each potential project is which can help you make better business decisions in the long run.
  • There are tons of integrations you can choose from if you want to use QuickBooks alongside another service. Some of the apps the tool integrates with easily include ClickUp PayPal, Shopify, and more.
  • QuickBooks charges 2.9% for invoiced cards and $0.25 per transaction making it one of the best options for affordable transaction fees.

Cons

  • The pricing is a little higher than most of its competitors.

Costs

It is a more expensive option than most with the QuickBooks’ Essentials having a monthly cost of $25. The Plus plan is $70 a month and the Advanced plan is $150 a month. Much like FreshBooks, you can get a 30-day trial period to test out the product.

For digital agencies, you would have to opt for either the Plus plan or the Advanced plan depending on the size of your business.

Wave logo - 7 Best Online Invoicing Tools For Digital Agencies
  • freemium version
  • Upon request

3. Wave – Best free invoicing tool

Wave screenshot - 7 Best Online Invoicing Tools For Digital Agencies

A common misconception is that free means a loss of quality but Wave remains one of the best accounting software options on the market.

If you are looking for an invoicing software that gives you all of the basic features necessary to run your business while still staying affordable, Wave is the best option out there. It is a no-frills invoicing option that allows you to send customizable and unlimited invoices.

Pros

  • Wave lets you customize your invoices with your brand colors and logo.
  • You can customize payment terms for each customer.
  • You will be notified when your invoices have been viewed by the recipient.
  • The software will automatically calculate your sales tax on each invoice.
  • It seamlessly integrates with your accounting needs.

Cons

  • You will not get amazing customer support but that should not come as a surprise since you are paying for what you get and in this case you are not paying at all.
  • This may not be suitable for digital agencies that are large in size and are looking for a more premium invoice automation tool.

Costs

You cannot beat free which is why when it comes to costs, Wave wins every time.

PayPal logo - 7 Best Online Invoicing Tools For Digital Agencies
  • freemium version
  • Transaction fee of 2.9% + $0.30

4. PayPal – Best invoicing tool for one-time clients

PayPal screenshot - 7 Best Online Invoicing Tools For Digital Agencies

Paypal is the most straightforward invoicing option you can choose. You can create an invoice, send it, and get paid all in a matter of minutes.

If you are looking for an invoicing software that gives you all of the basic features necessary to run your business while still staying affordable, Wave is the best option out there. It is a no-frills invoicing option that allows you to send customizable and unlimited invoices.

Pros

  • Wave lets you customize your invoices with your brand colors and logo.
  • You can customize payment terms for each customer.
  • You will be notified when your invoices have been viewed by the recipient.
  • The software will automatically calculate your sales tax on each invoice.
  • It seamlessly integrates with your accounting needs.

Cons

  • You will not get amazing customer support but that should not come as a surprise since you are paying for what you get and in this case you are not paying at all.
  • This may not be suitable for digital agencies that are large in size and are looking for a more premium invoice automation tool.

Costs

You cannot beat free which is why when it comes to costs, Wave wins every time.

Xero logo - 7 Best Online Invoicing Tools For Digital Agencies
  • 30 days free trial
  • From $30/month

5. Xero – Best invoicing software for bulk invoicing

Xero screenshot - 7 Best Online Invoicing Tools For Digital Agencies

Xero is one of the most well-automated options available. You can automatically alert customers when a bill is overdue or set up repeating invoices to get billed on the go.

Xero was founded in 2006 in Wellington, New Zealand with the primary goal of making your finances automated and easily accessible. Thankfully for the rest of us, they succeeded in doing this by becoming one of the best invoicing tools.

Xero offers features like bulk invoicing, mobile invoices using their invoice creator app, and more.

Pros

  • Bulk invoicing allows you to send multiple invoices at the same time or email all of your invoices to the same customer together so that they can pay the final amount all at once.
  • You can set up repeating invoices that get sent every month to your customers.
  • Invoices can be easily replicated and used again.
  • Another cool feature is that you can see when a customer has seen your invoice and if it has been paid.

Cons

  • This option lacks customer support aid over the phone or via chat. You can only reach out by filling out a contact form and waiting for them to get in touch.

Costs

Xero’s pricing starts at $20 per month for their starter plan. There is also a standard plan for $30 a month and a premium plan for $40 per month. They also offer a 30-day free trial.

Tipalti logo - 7 Best Online Invoicing Tools For Digital Agencies
  • From $447/month

6. Tipalti – Best invoicing system for large agencies

Tipalti screenshot - 7 Best Online Invoicing Tools For Digital Agencies

Tipalti makes invoicing for large agencies a piece of cake with features like invoice import and OCR technology.

Tipalti was built with larger agencies in mind. Their pricing and features reflect this. They have advanced features like data entry using Optical Character Recognition (OCR) technology and bill data prediction using machine learning.

All of the features have one goal in mind- to save you time. You can also add on unlimited invoice approvers which means if you are dealing with a company that has a multi-tier set up, you can create your invoices in a way wherein they have to be approved at multiple levels.

Pros

  • Automated routing emails can be sent for online approval. This eliminates the need to chase down multiple people to approve an invoice.
  • Payments can be made easily by grouping together multiple invoices regardless of who they are from or what payment method they are using.
  • Notifications via email allow anyone who is interested to see payment and invoice information easily.
  • OCR scanning allows you to scan invoices and avoid time being wasted on data entry.

Cons

  • It is a far more expensive option than most.They have two pricing options with the cheaper one having a price tag of $299.

Costs

Tipalti has pricing models that are designed to grow with your digital agency. Their Tipalti Express platform comes with a fee of $299 and you can choose to upgrade to their Tipalti Pro platform at any point for a fee of $447 per month.

Scoro logo - 7 Best Online Invoicing Tools For Digital Agencies
  • 14 days free trial
  • From $37/user/month

7. Scoro – Best online invoicing dashboard

Scoro screenshot - 7 Best Online Invoicing Tools For Digital Agencies

Scoro is where everything is in its place and you know the place of everything.

Scoro has one of the cleanest and most user-friendly dashboards available. It is easy to understand and everything you could possibly need is a simple click away.

The platform is an all-in-one management tool that includes invoicing features that allow you to create beautiful invoices, send reminders, and get paid on time- all the time.

Pros

  • Scoro lets you set up a recurring payment plan for any customer.
  • You can automate reminders to be sent whenever a bill is overdue or has not been paid after a set number of days.
  • The project profitability features lets you get a bird’s eye view of how profitable each project or client is.
  • All of your information is on one clean dashboard.

Cons

Since Scoro is an all-in-one solution that includes things like key performance indicators, calendar management, and task management; an agency that is simply looking for an invoicing tool may feel overwhelmed.

Costs

Scoro’s pricing starts at $26 per user per month with a minimum of 5 users. This is in reference to their essential plan (the smallest plan they have). They also have a work hub plan and a sales hub plan, both of which have a recurring cost of $37 per month per user.

You can test run their services today with a 14-day free trial.

Other Online Invoicing Tools You Should Consider

Here are a couple of other invoicing tools that are worth a mention but did not make the list:

  1. Harvest– Best for paying for services that need to be time tracked down to the second.
  2. Invoice2go– Best software for sending invoices through messaging apps.
  3. Square– Best for startup digital agencies.
  4. Zoho Invoice– Best invoicing software for scaling your agency.
  5. MYOB– Best simple invoicing software.

Have You Narrowed Down on an Invoicing Tool for Your Business?

According to a study by Ultimate Software, 92% of employees say that having technology that helps them do their job efficiently directly affects their work satisfaction. Invoicing tools are one of the many ways you can save time for yourself and your fellow employees. Tasks that normally take a few days could be completed in a few hours which means you can spend those hours growing your business.

Working smart is the key to business growth after all.

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If you have any more questions, leave a comment below!

Freya Kuka

About Freya Kuka

Freya is the founder of the personal finance blog CollectingCents that teaches readers how to grow their passive income, save money, improve their credit score, and manage debt. She has been featured/quoted on publications like Business Insider, the Huffington Post, and GoBankingRates.

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