Best invoicing software: send, track and get paid

Published Monday 13 April 2026

Table of contents

• Invoicing shouldn't be tedious or complicated
• What makes invoicing software easy to use
• Essential features to look for in invoicing software
• 7 ways your business runs faster and smarter with online invoicing
• Understanding invoicing software pricing models
• Choose invoicing software that works for your business
• Invoicing software for different business types
• FAQs on invoicing software

Key takeaways

• Choose invoicing software with built-in automation features like recurring billing and payment reminders to eliminate manual data entry and reduce the 20 hours per month most small businesses spend on invoicing tasks.
• Prioritise mobile functionality and real-time tracking capabilities so you can create professional invoices on-site, monitor payment status instantly, and get paid faster through integrated payment options.
• Consider eInvoicing through secure networks like Peppol to reduce processing costs from over $30 per paper invoice to less than $10 per digital invoice while protecting against payment redirection scams.
• Evaluate pricing models carefully by factoring in transaction fees, user limits, and potential time savings rather than just the base subscription cost to determine true value for your business.

Invoicing shouldn't be tedious or complicated

Invoicing software automates how you create, send, and track bills to customers. The right tool eliminates manual data entry, speeds up payments, and gives you visibility into who owes what. Without it, common frustrations include:

• Manual data entry: you waste time retyping the same customer and product details
• Slow delivery methods: these delay payment cycles when you rely on postal mail
• Poor payment tracking: this leaves you guessing whether invoices were received or opened
• Cash flow delays: these restrict your ability to pay suppliers and invest in growth

Research confirms invoicing is a significant component of small and medium-sized enterprises' (SMEs') administrative tasks, with 83% spending up to 20 hours a month simply issuing invoices. That's time you could spend serving customers and growing your business.

Online invoicing speeds up the entire payment cycle. When you can generate an invoice on-site or between jobs, customers receive it faster and pay sooner. Australian Government agencies, for example, are now required to pay them within five days when sent through the Peppol network, regardless of the invoice value.

What makes invoicing software easy to use

Easy-to-use invoicing software requires minimal training and fits naturally into your daily workflow. It reduces clicks, automates repetitive tasks, and displays the information you need without hunting through menus. Look for these features:

• Intuitive design: you understand how to use it without reading a manual
• Built-in automation: send payment reminders and recurring invoices automatically
• Mobile access: create and send invoices from your phone while on-site
• Real-time dashboards: see who's paid and who's overdue at a glance
• Customisable templates: create professional invoices that reflect your brand
• Accessible support: get help quickly when you have a question

Easy invoicing software lets you create and send professional invoices from anywhere, on any device. The best systems make billing simple for both you and your customers.

eInvoicing sends invoices directly to your customer's accounting software through secure networks like Peppol. Your invoice arrives ready to be approved and paid, with no lost emails or manual data entry required.

The benefits work both ways. You'll also receive supplier invoices directly into your accounting software as draft bills, reducing data entry and keeping your ledger accurate. This efficiency is significant, as the Australian Taxation Office (ATO) estimates it costs less than $10 to process an eInvoice compared to over $30 for a paper or PDF version.

eInvoicing also makes your invoicing more secure. According to an Australian Competition and Consumer Commission (ACCC) report, Australian businesses lost $227 million to payment redirection scams in 2021 alone, a 77% increase from 2020. Delivering invoices directly from software to software helps protect against these threats.

Key benefits of seamless invoicing

• Instant payment options: let customers pay immediately with one click
• Real-time tracking: shows when invoices are opened, viewed, and paid
• Mobile accessibility: enables invoice creation on-site or while travelling
• No lost paperwork: eliminates postal delays and misplaced mail through digital delivery

Essential features to look for in invoicing software

Core invoicing features determine how efficiently you can bill customers and collect payments. Prioritise these capabilities when evaluating options:

• Automation: schedule recurring invoices and payment reminders without manual intervention
• Payment processing: accept credit cards, direct debit, and bank transfers directly from invoices
• Mobile functionality: create, send, and track invoices from your phone or tablet
• Real-time reporting: view outstanding balances, overdue invoices, and cash flow at a glance
• Bank connections: sync with your bank accounts for automatic payment reconciliation
• Customisation: add your logo, adjust layouts, and include custom fields for your industry
• Security: protect financial data with encryption and secure cloud storage
• Scalability: ensure the software handles increased invoice volume as your business grows

How you combine these features depends on your business type and workflow. A tradesperson invoicing on-site needs strong mobile features, while an online retailer may prioritise ecommerce integrations.

7 ways your business runs faster and smarter with online invoicing

Online invoicing tools streamline everyday processes and give you more visibility into payments, helping your business save time and get paid faster.

• Automate repetitive tasks: remove manual data entry and recurring billing work
• Monitor cash flow in real time: view updated payment status across all invoices instantly
• Speed up payments: let customers pay immediately through integrated payment options
• Invoice from anywhere: create professional invoices from any device, on any job site
• Receive instant notifications: get alerts the moment invoices are viewed and paid
• Share status with customers: give clients real-time visibility into their invoice history
• Gain business insights: track total revenue and identify your best-paying clients

Understanding invoicing software pricing models

Invoicing software pricing typically follows subscription models that charge monthly or annually based on features and usage. Understanding these models helps you evaluate true costs.

Common pricing structures include:

• Tiered subscriptions: pay more for additional features, users, or invoice volume
• Per-user pricing: costs increase with each team member who needs access
• Flat-rate plans: one price covers all features regardless of usage
• Freemium models: basic features free, with charges for advanced capabilities

Watch for these potential extra costs:

• Transaction fees: percentage charged on each payment processed
• User limits: charges for adding team members beyond the base plan
• Storage fees: costs for document storage above included limits
• Integration costs: fees for connecting to banks or third-party apps

When comparing prices, factor in the time you'll save. A recent survey found that 62% of SMEs believe they could save up to 10 hours every week by adopting eInvoicing. This suggests software that costs more but automates tasks may deliver better value than a cheaper option requiring more manual work.

Choose invoicing software that works for your business

Choosing invoicing software requires matching features to your current workflow and future growth plans. Evaluate options against these criteria:

• Scalability: confirm the software includes features you'll need as your business grows
• Integration: check connections with your bank, customer relationship management (CRM), and ecommerce platforms
• Compliance: verify it meets tax requirements and offers secure, cloud-based access
• Trial period: test the software with a free trial before committing
• Professional input: ask your accountant or bookkeeper for their recommendation

Invoicing software for different business types

Industry-specific invoicing needs vary based on how you bill customers and manage projects. The right software should match your workflow.

Service-based businesses (consultants, agencies, professionals) have specific invoicing needs:

• Track billable hours and convert timesheets to invoices
• Set up recurring invoices for retainer clients
• Include detailed service descriptions and project references

Retail and ecommerce businesses need different features:

• Sync inventory with invoicing to track stock levels

Xero's invoicing software combines powerful automation with simple, intuitive design. Get one month free and work on your invoicing when it suits your schedule.

FAQs on invoicing software

Here are answers to common questions about invoicing software.

What is invoicing software?

Invoicing software automates how you create, send, and track bills to customers. It eliminates manual data entry, speeds up payments, and gives you visibility into outstanding invoices.

How much does invoicing software cost?

Pricing varies based on features and business size. Most invoicing software uses subscription models with monthly or annual fees. Costs can range from free basic plans to premium options with advanced features.

What's the difference between invoicing software and accounting software?

Invoicing software focuses specifically on creating and tracking bills. Accounting software includes invoicing plus broader financial management like bookkeeping, payroll, and tax reporting.

Can I send invoices from my phone?

Yes, most modern invoicing software offers mobile apps that let you create, send, and track invoices from your phone or tablet while on-site or travelling.

What is eInvoicing?

eInvoicing sends invoices directly to your customer's accounting software through secure networks like Peppol. Your invoice arrives ready to be approved and paid, with no manual data entry required.