As a consultant or freelancer, your time is money. Spending hours creating invoices in Excel or Word drains profit and motivation. Yet invoicing is critical. Every invoice you don't send is money you don't collect. This is where invoicing software becomes invaluable, automating the entire process from invoice creation to payment reminders.
We tested three market leaders: FreshBooks, Wave, and Xero. Here's what sets them apart.
1. FreshBooks: best for service providers and agencies
FreshBooks is purpose-built for service businesses. The interface is intuitive, modern, and requires zero accounting knowledge. When you open FreshBooks for the first time, you immediately understand how to create an invoice and send it to a client.
Key strengths:
• Unlimited invoices and clients, even on the basic plan
• Built-in time tracking and billable hours
• Professional invoice templates with logo and branding
• Client portals so customers see their invoice status and paid invoices
• Retainer support for recurring monthly work
Pricing
FreshBooks pricing ranges from $15-60 USD per month depending on features. If you bill clients hourly and need time tracking, FreshBooks is worth the extra cost.
2. Wave: best for startups and solopreneurs
Wave is famous for one thing: it's free. You can create unlimited invoices, send them, accept payments, and manage accounting without paying a cent. This is revolutionary for new consultants still testing their business model.
Key strengths:
• Completely free invoicing and accounting
• Simple invoice templates that look professional
• Accept online payments (Wave takes a small percentage)
• Basic accounting and expense tracking
Key weaknesses:
• No built-in time tracking
• Limited customization options
• Interface feels dated compared to FreshBooks
Pricing
Free. Wave makes money through payment processing fees (typically 2.8% plus a small per-transaction fee).
3. Xero: best for growing teams
Xero is a complete accounting platform, not just invoicing. If you're growing and want full accounting automation, this is your best long-term choice. Many accountants recommend Xero to their clients because it integrates seamlessly with their tax and bookkeeping workflows.
Key strengths:
• Powerful accounting engine, not just invoicing
• Automatic bank reconciliation
• Multiple users and permission levels
• Custom invoice fields and workflows
Key weaknesses:
• Steeper learning curve than Wave or FreshBooks
• Requires some accounting knowledge to use effectively
Pricing
Xero pricing ranges from $15-60 USD per month depending on features and number of users.
Which should you choose?
Choose Wave if: You're just starting out, you want zero upfront costs, and you only need basic invoicing.
Choose FreshBooks if: You're billing clients by the hour, you want to track your time, and you want a professional experience from first click.
Choose Xero if: You have a team, you want full accounting automation, and you're planning long-term growth.
The good news: all three offer free trials. Test them before committing.
Sources
• FreshBooks - https://freshbooks.com
• Wave - https://wave.app
• Xero - https://xero.com