Best Invoicing Software For Contractors | Free and Paid Versions

Invoicing software for contractors is a crucial tool for businesses of all sizes.
It allows you to create and send invoices quickly and easily, keeping track of payments and outstanding balances. With so many different options on the market, it can be difficult to know which one is right for your business.
Here are four key features to look for in a good Contractor invoicing software:
1. Ease of use: The invoicing software should be easy to set up and use, with a user-friendly interface.
2. Contractor Invoice customization: The contractor invoicing software should allow you to customize your invoices to match your brand identity, including your logo, color scheme, and contact information.
3. Payment processing: The invoicing software should offer convenient payment processing options, such as online payments or integrations with popular payment processors such as PayPal or Stripe and Square.
4. Reporting: The contractor invoicing software should provide valuable insights into your construction business through comprehensive reporting features. This data can help you track your progress, identify areas of improvement, and make better informed decisions about your business.
Best invoicing software for contractors
- FreshBooks - Best Overall
- Zoho - Best Free Option
- Quick Books - Best Premium Option
- Wave - Honorable Mention
From small a one person contractor to a large contracting business with multiple employees you know how hard it can be to collect on-time payments. In fact a recent study by the SBA said the number one reason most construction businesses fail is due to cash flow or lack thereof. Getting invoices out in a timely manner and tracking them, and making sure you get paid can make all the difference. While contractor invoicing software is a small part of the accounting puzzle, it all starts there, and having a good invoicing software system is critical to running a profitable business.
My Pick: Best invoicing software for contractors- FreshBooks
FreshBooks was by far was the easiest to use and had the most options. It was the closest to a full accounting software as you can get without spending a small fortune, and it will handle all the needs of a small business.
Pros
- Easy to use
- Native integration with lots of other software
- Bookkeeping and accounting features
- Lots of useful reports
- Mobile app
- Customizable profesional invoices
Cons
- There is no free option
- Can get expensive if you have a lot of users
FreshBooks has lots of features that are essential to running your business. It can keep track of income and expenses, and can integrate with your bank account to show you where you stand.
Some of the stand-out features I liked of FreshBooks are:
- Professional Invoicing – Impress Clients with customizable professional invoices that clearly show the work you have done.
- Expenses – Never miss a expense, you can snap receipt photos, email receipts to your account, and import expenses directly from your bank account.
- Track time to the minute – You can work on multiple projects at once and log the times into FreshBooks. This will automatically add the time to invoices if you choose to bill that way.
- Set up Multiple Projects – Projects allow you share information all in one place and keep everyone updated.
- Automated Payments – You can give your clients multiple ways to pay. From credit cards to multiple other options, making it easy for your client to pay their invoices.
- Reporting – FreshBooks can track every dollar in and out of your business so you can run any report you want to diagnoses any issue you may have with cash flow. This also makes it easy at the end of the year when tax time comes around.
- Accounting – Has Double-Entry Accounting tools and reports that are the standard for all accredited accounting firms.
- Mobile – You can send invoices track expenses, and check up on projects all on the go with the FreshBooks mobile app.
- Good Customer Support – FreshBooks says that a real human will always answer your calls and help you with your questions.
Pricing:
Best Free: Contractor invoicing software - Zoho
For a free invoicing software option Zoho was very good for a contractors. It would be hard to find something to dislike about it if you are a small business or solo freelancer that just needs software to send out invoices. If all you want your invoicing software to do is send out invoices then Zoho will work be the best option for you.
Pros
- Free
- Integrates with the full suite of Zoho Tools
- Know when your invoice is viewed by a customer
- Brand your invoices with custom logos and colors
- Mobile app
- Can set recurring invoices
Cons
- Not a true accounting software by itself
- Can only integrate with the other Zoho Suite of tools
- The interface can be confusing to use
Zoho invoicing software is an application that helps contractors create and send invoices to their customers. Zoho Invoice integrates with Zoho Books, Zoho CRM, and Zoho Expense, making it easy to track customer payments and expenses. Overall, Zoho Invoice is good free invoicing option for the small business on a tight budget.
What I liked about Zoho invoicing:
- Know when an invoice is viewed by a customer – You can set up the software to notify you when an invoice is viewed by a customer through the portal.
- View invoice history – Keep track of changes of the invoice for payments received and when more expenses were added.
- Brand your invoice – Add customizable branding to your invoice with a logo and colors that are unique to your brand.
- Multiple Pre-made templates – Choose from a large library of pre-made templates and customize to fit your brand.
- Create multilingual and multicurrency invoices.
- Compliant with ESIGN and eIDAS e-signature laws
- Set recurring invoices – If you have a service or customer that receive periodic services you can set up invoices to go out automatically.
- Get real-time invoice reports. You can run real time reports or schedule them to run on recurring basis and receive them by email.
- Easy estimates – Create estimates and turn them into invoices with one click.
- Time tracking – Zoho allows you to log and track time spent on projects.
- Collect advance payments for projects – Zoho will automatically deduct advanced payment from invoices to show the customer their true balance.
- Expense tracking – Allows you to track your expenses and know where your money is going with a reports.
Pricing: FREE
Best invoicing software for large businesses that need complete full scale accounting software - QuickBooks
Large organizations have complex invoicing software needs and they need to be compliant with a lot of different tax laws. In those cases QuickBooks is going to be a better option.
QuickBooks invoicing software can be used to track income and expenses, create invoices and manage payroll. QuickBooks offers features such as tracking inventory, creating reports and monitoring your company’s financial performance. QuickBooks is available in both desktop and cloud-based versions. QuickBooks is a popular choice for large businesses because it is has the accounting options you need and has a wide range of features. QuickBooks can help you save time on accounting tasks and makes it easier to track your business finances.
Pros
- Full accounting system
- Can track inventory
- Syncs with your banks accounts
- Can be used it for payroll
- Mobile app
- Reporting is very robust
Cons
- Expensive
- Have to pay extra for payroll function
- Limited number of users per a plan
QuickBooks is a accounting software package developed and marketed by Intuit. QuickBooks products are geared mainly toward medium and large-sized businesses and offer on-premises accounting applications as well as cloud-based versions that accept business payments, manage and pay bills, and payroll functions.
QuickBooks Online is a subscription service that gives users access to their financial data from any device with an internet connection. The Software offers features such as tracking sales and expenses, creating invoices and estimates, managing inventory, and running reports.
QuickBooks Enterprise Solutions is the on-premises version of QuickBooks that offers additional features for businesses with more complex needs, such as advanced inventory management, pricing rules, and tracking sales orders. QuickBooks Enterprise Solutions also provides access to support from certified QuickBooks Enterprise Solutions consultants.
What I liked about QuickBooks:
- Track income and expenses
- Tax deductions
- Receipt capture
- Mileage Tracking
- Cash flow reporting
- Sales and Sales Tax reporting
- Payroll
- Inventory management
Pricing:

How do I invoice as an independent contractor?
If you’re an independent contractor, chances are you’ve been asked to provide an invoice. Invoicing can be a bit tricky if you’re not used to it, but luckily there are invoicing software programs that can make the process much easier.
Here is what should be included on all invoices –
- Your Business Name
- Your contact information
- The name of your client
- Your clients contact information
- The work that was completed
- How much is due
- When is the due date
- What options do they have to pay their bill – can they use a credit card, PayPal or do they need to send a check?
With a little practice, invoicing will become second nature. And with invoice software, it can be downright easy!
There are so many free invoicing software options out there you should never have to manually create your own invoice.
What should be on a invoice for a contractor?
Information to include on all invoices for contractors
- Your business name
- Your contact information
- Clients name
- Clients contact information
- Work that was done
- Amount due
- Due date
- Options to pay the invoice – can they use a credit card, PayPal or do they need to send a check by mail?
With a little practice, invoicing will become second nature. And with invoice software, it can be downright easy!
Is fresh books good for contractors?
Yes Fresh Books is one of the very best invoicing software for for contractors. For anyone who bills clients for their time, having a good invoicing software is essential. FreshBooks is one option that has gained popularity among contractors in recent years. There are a number of reasons why FreshBooks is a good choice for those who invoice their clients. First, it is very user-friendly and easy to set up. This can be important because contractors often invoice for many different projects at once, and being able to quickly generate invoices can save a lot of time. Second, it offers a variety of customization options, so that each invoice can be tailored to the specific project. This is helpful in ensuring that the client receives all the information they need. Finally, FreshBooks offers a number of features that make it easy to track payments and manage finances. Overall, FreshBooks is a great option for anyone who needs to invoice their clients regularly.
how often should I send out invoices as a contractor?
Every contractor has their own schedule but at a minimum you should send the invoice less than a week after the work has been completed. Any longer than that and you run into the chance that it wont get paid timely.
You should have a due date aproximatly 30 days out and then start sending late notices if it goes 15 days past that.
Your late notices should be tactful because there is a chance that they are not ignoring your or refusing to pay the invoice. It could be that they just misplaced it or forgot.