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TL;DR
- Best for freelancers and service businesses: Try Freshbooks →
- Best for full bookkeeping and US accountants: Try Quickbooks →
- Best for tight budgets: Try Wave →
- Best for UK, Australia and NZ businesses: Try Xero →
Comparison Table
| Tool | Best for | Invoicing and time tracking | Bookkeeping depth | Starting price |
|---|---|---|---|---|
| Try Freshbooks → | Freelancers, agencies, consultants | Excellent, unlimited time tracking | Double-entry reports, bank reconciliation | Lite $23/mo (verified Oct 2026) |
| Try Quickbooks → | Product and service small businesses | Good | Very deep | Check current pricing |
| Try Wave → | Solo owners on a budget | Good basics | Basic | Free core; check current pricing |
| Try Xero → | Growing businesses outside the US | Good | Very deep | Check current pricing |
What to look for
- How you bill. Hourly and project work needs time tracking, estimates and retainers. Product businesses need inventory.
- Who touches the books. If an accountant does your year-end, ask which software they prefer. It can save you fees.
- Payments. Card and bank transfer fees vary. Lower fees can matter more than the subscription price.
- Growth path. Client limits, user seats and payroll add-ons decide how much the tool costs a year from now.
FreshBooks
Try Freshbooks → started as invoicing software for freelancers and still feels designed for people who bill clients. Invoices, estimates, proposals, time tracking and project profitability sit at the center, with double-entry accounting underneath.
Pricing (verified on freshbooks.com/pricing, October 2026, monthly billing):
| Plan | Regular price | Billable clients | Highlights |
|---|---|---|---|
| Lite | $23/mo | 5 | Invoices, estimates, expense tracking, online payments |
| Plus | $43/mo | 50 | Adds proposals, retainers, tax-time and accounting reports, receipt scanning, accountant access |
| Premium | $70/mo | Unlimited | Adds bill receipt scanning with line items |
| Select | Custom | Unlimited | Lower transaction fees, project profitability, 2 team members included, dedicated support |
At the time of checking, FreshBooks was showing an introductory discount of 80% off for four months, plus a 30-day free trial with no credit card. Add-ons include Advanced Payments ($20/mo, included on Select), extra team members ($11/mo per user) and FreshBooks Payroll ($40/mo plus $6/mo per user). FreshBooks Payments lists card fees of 2.9% + $0.30 and ACH bank transfers at 1%.
Pros
- Best-in-class invoicing for service businesses
- Unlimited time tracking and project budgets
- Proposals, retainers and deposits built in
- 30-day money-back guarantee
Cons
- Client limits on Lite and Plus can force an upgrade
- Team members cost extra on most plans
- Not built for inventory-heavy product businesses
Best for: freelancers, consultants, designers, developers and small agencies. See also best AI invoice generators for freelancers.
QuickBooks Online
Try Quickbooks → from Intuit is the most widely used small business accounting software in the US. It covers invoicing, expenses, bank feeds, bills, inventory (on higher tiers), payroll and a deep set of reports.
Pricing: several tiers by users and features, frequently discounted for new customers. Check current pricing on the QuickBooks site.
Pros
- Very complete bookkeeping and reporting
- Large accountant and app ecosystem
- Inventory and payroll options
Cons
- More complex than FreshBooks for simple invoicing
- Price rises as you add users and features
Best for: small businesses selling products or services that want full accounting and work with a US accountant. Looking further afield? Read QuickBooks alternatives for small business accounting.
Wave
Try Wave → is known for free core accounting and invoicing aimed at very small businesses, with paid payment processing, payroll and premium features.
Pricing: check current pricing on Wave's site, as plans have changed in recent years.
Pros
- Low or no cost to start
- Simple invoicing and income and expense tracking
- Good for side businesses
Cons
- Fewer automations and integrations
- Support and advanced features may require a paid plan
- Best suited to North American businesses
Best for: sole proprietors and side hustles that need the basics.
Xero
Try Xero → is a full cloud accounting platform popular with accountants in the UK, Australia and New Zealand. It offers bank reconciliation, invoicing, bills, multi-currency on higher plans, and a large app marketplace.
Pricing: tiered plans that vary by country. Check current pricing on Xero's site.
Pros
- Strong bank reconciliation and accountant tools
- Large app marketplace
- Unlimited users on its plans (check current terms)
Cons
- Lower plans may limit invoices or bills
- Less tailored to hourly billing than FreshBooks
Best for: growing businesses outside the US, or anyone whose accountant uses Xero.
Which should you choose?
- You bill clients for your time: Try Freshbooks →. Start with the 30-day free trial and import a month of expenses to test it.
- You sell products or need detailed books: Try Quickbooks →.
- You are just starting and every dollar counts: Try Wave →.
- You are in the UK, Australia or New Zealand: Try Xero →.
One practical check: count how many clients you invoiced in the last 12 months. If it is more than 5, FreshBooks Lite will be too small, and Plus is the realistic starting point.