Best Billing Software for Small Business in 2025

A small business’s smooth operations depend largely on cash flow. The right billing software can help you send invoices, receive payments, and keep cash running without getting buried in paperwork.

We’ve rounded up the best billing software for small businesses so you can pick the right one for your workflow requirements.

Key Takeaways:

• Choose billing software that’s simple, fast, and works on your phone or tablet.
• Optimizing invoices saves time, reduces errors, and speeds up payments.
• Look for features like professional templates, client management, and multiple payment options.
• Switching from manual invoicing to digital improves cash flow and cuts costly mistakes.
• Tofu is designed for busy small businesses and field pros who need reliable, mobile billing.

Why Small Businesses Need Professional Billing Software

When you’re running a small business, time is money, and both are easy to lose if you’re chasing paper invoices or juggling spreadsheets. Professional billing software takes the hassle out of getting paid. It lets you create and send invoices in minutes, keep tabs on who’s paid and who hasn’t, and keep all your records in one place.

For contractors and field service pros, the right tools bring invoicing and field service management together to save time. Instead of juggling spreadsheets or running back to the office, you can send estimates, create invoices, and track payments right from your phone or tablet. 

Having everything in one place helps you stay organized, cut down on paperwork, and get paid faster, even when you’re out in the field.

Top Billing Software for Small Businesses in 2025

Finding the right billing software can change how small businesses handle money in 2025. We’ve selected the best options for your invoicing needs below.

1. Tofu – Best for Fast, Simple Billing for Service-Based Small Businesses

Tofu is built for contractors, field service pros, and other small business owners that need a quick, no-fuss invoice maker to send invoices and estimates, right from the job site or the office. Whether you’re on your phone, tablet, or desktop, Tofu lets you create, send, and manage your billing without getting bogged down in admin work.

Designed for service-based businesses that want less paperwork and more billable hours, Tofu delivers speed, simplicity, and reliability. With field-ready features like mobile invoicing, professional templates, and estimate-to-invoice conversion, it gets you paid faster and keeps cash flowing, regardless of where you are!

Save time on invoicing, spend more time on the job with Tofu. Sign up for Tofu now!

Key Features:

• Mobile and Web Access: Create and manage invoices anywhere, anytime; perfect for small business owners who work in the field.
• Fast, Professional Estimates: Send clear, detailed estimates that win jobs, then convert them to invoices easily when approved.
• Ready-to-Use Templates: Use clean, branded templates to send professional invoices without starting from scratch.
• Easy Payment Options: Accept credit cards and tap-to-pay via Stripe, even on-site, so clients can pay instantly.
• Built-in Client Management: Keep all client details, job history, and invoice records in one place for quick follow-ups.

Best For:

• Billing Often: Small businesses that send multiple invoices each week and need a dependable tool to handle them all.
• Invoicing on the Go: Owners and teams who rely on mobile devices to keep their billing moving.
• Small Teams: Groups that need to keep client and job information organized and accessible.
• Simplifying Billing: Anyone ready to ditch paper invoices, PDFs, or spreadsheets for a modern, easy-to-use solution.

Pricing: 

• Plus Plan: $9/month
• Premium Plan: $13/month

Tip: Tofu also offers free resources for occasional or one-off invoice needs:

• Invoice Generator: Create an invoice in your browser and send it easily via email or other relevant channels.
• Invoice Templates for Different Industries: Download static invoice files in PDF.

2. QuickBooks Online – Best for Accounting and Billing in One

Known as a go-to for small business finance, QuickBooks Online combines professional billing tools with full-featured accounting, so everything from invoices to expenses can be managed in one place.

For small business owners who want both billing and bookkeeping without juggling multiple apps, QuickBooks Online offers an all-in-one setup. You can send invoices, accept payments, reconcile bank transactions, and generate financial reports, all from your phone, tablet, or desktop.

Key Features:

• All-in-One Finance Management: Create invoices, track payments, log expenses, and manage taxes in one platform.
• Mobile and Web Access: Send invoices and check payment status from anywhere.
• Customizable Invoices: Add your logo, colors, and custom fields for a branded, professional look.
• Online Payments: Accept credit cards and bank transfers directly from your invoices.
• Expense Tracking: Automatically import transactions from your bank to keep your books up to date.

Best For:

• Businesses Wanting One Tool for Billing & Accounting: Perfect for those who want to manage invoicing and bookkeeping together.
• Owners Who Need Detailed Financial Reports: Great for tracking cash flow, profitability, and tax obligations.
• Teams with Multiple Users: Share access with your bookkeeper or accountant for real-time collaboration.
• Growing Businesses: Scales well with added features as your needs expand.

Pricing:

• Simple Start Plan: $19/month
• Essentials Plan: $27/month
• Plus Plan: $30/month
• Advanced Plan: $70/month

3. Zoho Invoice – Best Free Billing Software for Small Teams

For small teams looking to keep costs low, Zoho Invoice delivers professional billing tools completely free, making it easy to send invoices, track payments, and manage expenses without a subscription.

Built to help small teams work smarter, Zoho Invoice lets you create invoices, send estimates, log time, and manage expenses, all from your phone, tablet, or desktop. Even though it’s free, it still offers features that rival many paid options, with no ads or hidden fees.

Key Features:

• 100% Free: Full access to all features without subscription costs.
• Professional Invoicing: Create branded invoices with your logo and colors.
• Mobile and Web Access: Send invoices and track payments from anywhere.
• Time Tracking: Log hours for projects and convert them into invoices instantly.
• Expense Management: Record and categorize expenses to keep your finances organized.

Best For:

• Small Teams on a Budget: Ideal for businesses that want a solid billing tool without paying monthly fees.
• Service-Based Businesses: Great for freelancers, consultants, and contractors who bill for time or projects.
• Startups Testing Digital Billing: A low-risk way to move away from manual invoicing or spreadsheets.
• Teams Needing Simple Collaboration: Share access with team members for basic billing tasks.

4. FreshBooks – Best for Client Billing and Time Tracking

FreshBooks shines for service-based businesses that bill by the hour. It pairs simple, professional invoicing with built-in time tracking and project management, all accessible on mobile and desktop.

With FreshBooks, you can track hours as you work, assign them to specific clients or projects, and turn them into invoices in just a few clicks. It’s designed to be easy to use on mobile or desktop, so you can manage your billing wherever the job takes you.

Key Features:

• Built-In Time Tracking: Record hours for clients and projects, then invoice directly from those records.
• Professional Invoicing: Send branded invoices with clear breakdowns of services provided.
• Mobile and Web Access: Log time, send invoices, and check payment status from anywhere.
• Expense Management: Track and categorize expenses for easy reporting at tax time.
• Project Collaboration: Share project details and progress with clients or team members.

Best For:

• Service-Based Businesses: Especially those that bill hourly or by project milestones.
• Freelancers and Consultants: Easy to track time and bill without juggling multiple tools.
• Small Teams with Shared Projects: Assign and track work hours across team members.
• Businesses That Value Client Transparency: Provide clients with clear, detailed invoices that build trust.

Pricing:

• Lite Plan: $8.40/month
• Plus Plan: $15.20/month
• Premium Plan: $26/month

5. Xero – Best for Global Small Businesses with Multi-Currency Billing

Xero is a cloud-based accounting and billing tool built for small businesses that work with clients around the world. Its multi-currency billing makes it easy to send invoices, accept payments, and track finances in more than 160 currencies, all with real-time exchange rate updates.

Designed for growing businesses, Xero combines professional invoicing with robust accounting features. You can manage bills, reconcile bank transactions, and run financial reports alongside your billing tasks. It’s accessible on desktop, tablet, and mobile, making it ideal for business owners who work across time zones and locations.

Key Features:

• Multi-Currency Billing: Send invoices and accept payments in over 160 currencies with automatic conversion rates.
• All-in-One Platform: Includes invoicing, expense tracking, bank reconciliation, and reporting.
• Customizable Invoices: Add your branding and tailor invoices to match client preferences.
• Mobile and Web Access: Manage billing and accounting on the go.
• Integrations: Connects with hundreds of third-party business apps to extend functionality.

Best For:

• Global Small Businesses: Companies that work with international clients or suppliers.
• Service-Based Businesses with Overseas Clients: Ideal for consultants, agencies, and contractors billing in multiple currencies.
• Growing Businesses: Scales with additional features as your needs expand.
• Owners Who Want Billing and Accounting Together: Reduces the need for separate tools.

Pricing:

• Starter Plan: $29/month
• Standard Plan: $46/month
• Premium Plan: $69/month

6. Square Invoices – Best for Businesses Needing Flexible Billing and Payment Tools

If your service balances online and face-to-face payments, Square Invoices makes it simple to bill clients. Whether you’re on a job site, at a market, or working from the office, Square makes it simple to send invoices, accept payments, and keep everything organized in one place.

Square Invoices supports credit card, Apple Pay, Google Pay, and even contactless tap-to-pay options. This flexibility lets you get paid faster, no matter how your customers prefer to pay.

Key Features:

• In-Person and Online Payments: Accept credit cards, mobile wallets, and tap-to-pay right on your device.
• Easy Invoice Creation: Send professional invoices quickly via email or SMS.
• Mobile and Web Access: Manage invoices and payments anywhere, anytime.
• Automatic Payment Reminders: Allow customers to pay on time with built-in reminders.
• Integration with Square POS: Syncs seamlessly if you use Square for sales and inventory management.

Best For:

• Small Businesses with Mixed Payment Needs: Ideal for those who get paid both online and in person.
• Field Service Pros: Send invoices and accept payments right at the job site.
• Retail and Market Vendors: Combines invoicing with point-of-sale tools.
• Businesses Looking for Simplicity: Easy to set up and use, with transparent pricing.

Pricing:

• Free Plan
• Square Plus Plan: $49/month
• Square Premium Plan: $149/month

Comparison Table: Best Billing Solutions for Small Businesses

We've compared the top billing software solutions for small businesses below based on their features, pricing, customization options, and general ease of use.

Key Features to Look for in Billing Software for Small Businesses

Here are the key features every small business should look for:

• Easy Invoicing and Estimates: You want to create and send professional invoices and estimates quickly, right from your phone or computer. Look for software that offers ready-made templates and lets you convert estimates to invoices.
• Mobile Access: If you work in the field or on the go, mobile access is a must. Make sure your billing software works smoothly on phones and tablets, so you can send invoices or check payments anytime, anywhere.
• Payment Processing Options: The easier you make it for customers to pay, the faster you get your money. Look for software that accepts credit cards, mobile wallets, and tap-to-pay options.
• Client Management: Keeping client info, job history, and payment records all in one place saves you hassle and makes follow-ups easier. A built-in client database can help you stay organized.
• Ease of Use: Your billing tool should be simple and fast to use, with no steep learning curve or complicated menus. You want to spend less time on paperwork and more time on the job.

If you want to keep your invoicing process simple and field-friendly, there’s no better option than Tofu. It provides easy estimate conversions upon approval, customizable invoices for your business’s branding, and works on both your mobile device and desktop!

How to Choose the Right Billing Software for Your Small Business

Picking the right invoicing software for small businesses can feel overwhelming; Each option comes with different features and price points. To make it easier, focus on what fits your specific needs and work style.

If you’re a contractor or service pro who spends most of your time in the field, look for field service management software that includes fast, field-friendly invoicing. You want a tool that works smoothly on your phone or tablet so you can send estimates and invoices right from the job site.

Here are a few tips to help you choose:

• Match Features to Your Business: Don’t pay for extras you won’t use. If you only need simple billing, avoid complicated accounting suites. If tracking time and expenses is key, pick software that supports those well.
• Consider Ease of Use: You want something quick to learn and easy to navigate. Busy pros don’t have time to dig through complex menus or manuals.
• Check Payment Options: Make sure your software supports the payment methods your clients prefer, like credit cards or tap-to-pay. Getting paid faster keeps your cash flow steady.
• Think About Growth: Choose a solution that can grow with your business. Some invoicing software provide both affordable basic plans and more expensive, advanced plans.

By focusing on these points, you can find billing software that fits your business and gets you paid faster, without adding extra hassle.

Why Ditching Manual Invoicing Pays Off for Small Businesses

Many small businesses still rely on manual invoicing, think spreadsheets, PDFs, or even paper forms. While it might seem simple at first, manual invoicing can quickly eat up your time and create costly mistakes.

Switching to a digital billing software brings real benefits that can help your business run smoothly and grow faster:

• Save Time: Optimized invoice processing increases productivity by 33% and lowers processing costs by 42%. This means less time on paperwork and more time on your core work.
• Get Paid Faster: Professional, clear invoices with easy payment options encourage customers to pay promptly. 
• Stay Organized: Digital tools keep all your invoices, client info, and payment history in one place. That makes follow-ups and repeat billing simple.
• Cut Errors: Manual entry can lead to mistakes that delay payments or cause confusion. According to a 2025 study, 39% of invoices processed manually contain errors. These mistakes can cause payment delays and add unnecessary costs.
• Improve Cash Flow: Faster invoicing and payment tracking mean you always know where your money stands, no surprises or lost invoices. Sage reports that optimizing your invoicing process can reduce late payments by up to 20%, giving your business a meaningful boost in cash flow.

For busy contractors and small business owners, ditching manual invoicing isn’t just about convenience; it’s about keeping your business healthy and your workday less stressful.

Common Billing Challenges for Small Business Owners (and How Software Solves Them)

Billing can be one of the trickiest parts of running a small business. Here are some common challenges many small business owners face, and how the right billing software can fix them:

1. Slow Invoicing and Late Payments

Manually creating and sending invoices takes time, and if invoices aren’t sent quickly, payments get delayed. Billing software speeds up this process with ready-made templates and lets you send invoices from your phone or tablet right after a job is done. 

2. Keeping Track of Client Information and Payment History

Juggling client details, past invoices, and payment status across spreadsheets or paper files leads to confusion and missed follow-ups. Good billing software stores all client info in one place, making it easy to pull up records and send repeat invoices.

3. Managing Payments in Different Ways

Customers want to pay in different ways, credit cards, online payments, and even tap-to-pay in person. Billing software that supports multiple payment options makes it simple to accept payments no matter how your customer prefers to pay.

4. Difficulty Scaling as Business Grows

As your business grows, your billing needs get more complex. The right software can scale with you, adding features like unlimited invoicing and multi-business support.

Why More Small Businesses Are Switching to Tofu

Small business owners and field service pros don’t have time to wrestle with complicated software or hunt for old invoice files. Whether you’re fixing a roof, servicing an HVAC system, or managing multiple jobs a day, you need tools that keep up with your busy schedule. 

That’s why more contractors and service pros are choosing Tofu, a fast, field-friendly invoicing app built specifically for businesses like yours.

With Tofu, creating and sending invoices takes just seconds from your phone or tablet, right after the job is done. No piles of paperwork. No missed payments. Just simple, professional billing that keeps your cash flow steady.

Here’s why small business owners are making the switch to Tofu:

• Invoicing On the Go: Send estimates and invoices with a few taps, whether you’re at the job site, in your truck, or in the office.
• Templates Built for Service Pros: Use clean, branded invoices and estimates that look professional and build trust with your clients.
• No Setup or Training Needed: Tofu works right out of the box. Download the app, sign up, and start billing instantly, no confusing manuals or long tutorials.
• Built-In Client Management: Keep all your client contacts, job history, and payment records organized in one place for easy follow-up and repeat business.
• Mobile and Web Access: Work from your phone in the field or switch to your computer at the office; your data stays synced and ready whenever you need it.

For busy contractors and small business owners who want to spend less time on paperwork and more time growing their business, Tofu makes billing easy, fast, and built for the way you work. Try Tofu’s invoice maker today!

Final Thoughts: Choosing the Best Billing Software for Your Business in 2025

Finding the right billing software can make a big difference for your small business. In 2025, the best tools allow you to save time, speed up payments, reduce errors, and stay organized, all without slowing you down.

Whether you’re a contractor, field pro, or small business owner, look for software that fits how you work: simple, fast, and field-friendly. Tools like Tofu are built with busy pros in mind, so you can focus on the job, not the paperwork.

Ready to simplify your invoicing and get paid faster? Download the Tofu Invoicing App on your phone or try the web version by visiting our pricing page to sign up and start billing professionally, no matter where you work.

FAQ

What is the best invoice software for small businesses?

The best invoice software for small businesses is simple, fast, and mobile-friendly. Tofu stands out as a top choice, offering easy-to-use templates, client management, and the ability to send invoices right from your phone.

How can I create an online invoice quickly and professionally?

Using invoicing software lets you create and send online invoices in seconds. Look for invoicing solutions with ready-made templates and mobile access to bill clients directly from your phone or tablet.

What are the benefits of using billing software for small businesses?

Using billing software helps small businesses simplify invoicing and payments, reduce mistakes, keep records organized, and improve cash flow, all while saving time compared to manual billing.

How does invoicing software improve the billing process?

Invoicing software like Tofu helps the billing process by simplifying invoice creation and reducing manual errors, helping you get paid faster and stay organized.

Can I accept online payments using invoicing and billing software?

Yes, Tofu allows you to accept online payments through secure options like credit cards and tap-to-pay, so you can get paid faster, whether you’re in the field or the office.