Are you still manually tracking invoices? The right invoice management software can revolutionize your business’s billing and payment systems.
The global e-invoicing market will reach $60.9 billion by 2032, up from $13.5 billion in 2023, with a 17.7% growth rate. These numbers show how invoice automation software has become essential for businesses of all sizes.
A powerful invoice management system automates your invoicing and payment tracking. Your business can collect payments faster when customers receive invoices right after service completion. Clients tend to pay quickly when they get bills while your service remains fresh in their minds.
We’ve tested dozens of options and found 9 outstanding invoice management software solutions that deliver results. Our expert-tested recommendations will guide you to the perfect invoicing software that matches your needs, whether you’re a freelancer or run a growing business.
What is Invoice Management?
Invoice Management is the process of handling incoming and outgoing invoices within a business — from receiving, validating, approving, recording, and paying supplier invoices (Accounts Payable), to generating, sending, and tracking customer invoices (Accounts Receivable).
People often use “invoice management” and “invoice processing” interchangeably. These terms have subtle differences. Processing focuses on technical steps for handling individual invoices. Management includes the broader system governing all invoices, including policies and procedures.
A well-implemented invoice management system maintains accurate financial records and improves cash flow. The system reduces errors, prevents fraud, and promotes stronger vendor relationships through consistent, timely payments.
Key Features of Invoice Automation Software
The success of invoice management software relies on its core capabilities. Businesses need to understand these essential components to select the right solution that meets their needs.
- Invoice Generation: Quality invoice automation software comes with customizable templates that add your branding elements, logos and color schemes. The best systems create invoices automatically for recurring services and eliminate manual processes and data entry errors. These tools help you create professional invoices that showcase your business identity.
- Payment Tracking: Live payment updates give you visibility into invoice status from start to finish. Advanced systems match incoming payments to their corresponding invoices automatically. The automation tools send scheduled reminders for upcoming or overdue invoices, so you don’t have to chase payments manually.
- Automation: OCR technology and AI work together to extract important data from invoices of all formats, including handwritten text. The intelligent systems route invoices to approvers based on set guidelines. Automated matching compares invoices with purchase orders and receipts to maintain accuracy.
- Integration: The best invoice systems merge with accounting software like QuickBooks, Xero, and SAP. Payment gateway connections enable secure online transactions. API access lets you create custom integrations with CRM systems and other business tools.
- Reporting: Detailed dashboards show financial trends and KPIs as they happen. Advanced analytics spot bottlenecks, track payment performance, and reveal process improvement opportunities. These tools turn raw data into applicable business information.
- Client Management: Client portals give customers direct access to their invoices, payment history, and account details. This unified approach to client information makes relationship management better by showing all customer interactions in one place. The tools also help track regular customers and reveal their spending patterns.
9 Top Invoice Management Software Tools
Xero
Xero is a reliable cloud-based accounting solution that excels in invoice management for businesses of all sizes. The platform started in New Zealand in 2006 and has grown to serve users in over 180 countries.
Xero Features
The invoice management system in Xero has complete tools that streamline your billing processes. You can create, send, and manage invoices from any device with the online invoicing feature. The system automates payment reminders and connects with over 21,000 global banking institutions for continuous reconciliation. The mobile app lets you create invoices and track expenses on the go, which helps you stay productive even in spare moments.
Xero Pros
Cloud-based technology means you won’t need downloads or installations. Your financial data becomes available from anywhere with internet connectivity. The accessible interface shows your financial position instantly, which works well for users with different levels of accounting expertise. On top of that, it makes real-time collaboration with your advisors easier, leading to better financial management through timely guidance. Small businesses benefit from the platform’s cost-effectiveness, which delivers professional-level accounting at a fraction of traditional solutions’ cost.
Xero Cons
The platform’s accessible interface still needs time for users to learn its functionality fully. Xero raised its prices and removed built-in payroll from its plans. The requisition, purchase, and inventory management features are simple compared to specialized solutions. The most expensive plan exclusively offers valuable features like expense claims, projects, and multi-currency functionality.
Xero Integrations
The app marketplace connects to more than 1,000 third-party applications, letting you customize your experience based on your business needs. Payment processors like Stripe and GoCardless integrate for secure online payments. Industry-specific tools for retail, hospitality, construction, and other sectors are also available. Connected apps share data continuously, giving you a better business overview while reducing manual entry.
Xero Pricing
Xero offers three pricing tiers with different invoice management capabilities:
| Plan | Price |
| Early | USD 20.00/month |
| Growing | USD 47.00/month |
| Established | USD 80.00/month |
Each plan comes with reconciliation features and Hubdoc for capturing bills and receipts. Higher tiers offer advanced options like project tracking and multi-currency support.
FreshBooks
FreshBooks provides a simplified invoice management system that works great for freelancers and service-based small businesses. What started as a basic invoicing tool in 2003 has grown into a complete double-entry accounting system that keeps its user-friendly nature.
FreshBooks Features
FreshBooks shines at automating everyday accounting tasks like creating invoices, accepting payments, tracking expenses, and generating financial reports. Users can customize their invoices by picking templates, adding logos, and tweaking colors and fonts to match their brand. More than that, the system handles automatic late fees, recurring invoices, and payment reminders so you don’t have to deal with awkward payment follow-ups. The software has built-in time tracking that lets you log hours for specific clients and projects – a feature you usually only get with expensive plans from other providers.
FreshBooks Pros
The platform stands out with its user-friendly interface that meets freelancers’ and small businesses’ needs better than most competitors. Their mobile app lets users send invoices and manage expenses while staying connected with clients. The platform has complete project management tools in every plan, with features like project budgeting, time tracking, file sharing, and profit analysis. On top of that, new users get a 30-day money-back guarantee if they’re not happy with the service.
FreshBooks Cons
FreshBooks does have some drawbacks. The mobile app doesn’t work as well as the web version, and users report sync problems. The software lacks tools for financial forecasting and budget planning. Adding team members costs $11 per month each, which raises costs by a lot for growing companies. The platform also has fewer third-party integrations compared to QuickBooks Online and Xero.
FreshBooks Integrations
The AppStore connects FreshBooks with over 150 applications. These connections include payment systems like PayPal and Stripe for online transactions. Developers can access the API to build their own integrations. Small businesses can use Zapier to connect FreshBooks with other apps without coding.
FreshBooks Pricing
FreshBooks comes in four pricing tiers with a 70% discount for the first four months:
| Plan | Standard Price | Promo Price (First 4 Months) | Billable Clients |
| Lite | $21/month | $6.30/month | 5 clients |
| Plus | $38/month | $11.40/month | 50 clients |
| Premium | $65/month | $19.50/month | Unlimited |
| Select | Custom | Custom | Unlimited + dedicated support |
Each plan starts with one user, and extra team members cost $11 per person monthly.
SAP Concur
SAP Concur, a member of the SAP family, offers a complete approach to invoice management that does more than simple automation. This cloud-based service brings expense, travel, and invoice processing together on one platform. Companies with complex spending needs find this particularly valuable.
SAP Concur Features
SAP Concur’s invoice management system stands out with smart automation that reshapes the scene of traditional AP processes. The platform pulls data from invoices automatically. It uses optical character recognition (OCR) technology and machine learning to capture invoice numbers, dates, shipping details, tax information, and line-item data. The Concur Invoice system routes invoices to the right approvers through customizable workflows. It can match invoices to POs and goods receipts. Users can approve invoices, purchase orders, and expense reports while away from their desk through the mobile app.
SAP Concur Pros
Companies that use SAP Concur see major improvements in their operations. They report 60% fewer missing invoices and spend 29% less time on invoice capture. Their budget control improves too, with 26% less overspending thanks to better spending data visibility. The system works well for companies that operate worldwide. Most users get their money back within 7 months and save about $43,000 each year.
SAP Concur Cons
The system comes packed with features, but users often find the interface hard to navigate and outdated. Setting everything up takes months instead of weeks. The pricing structure lacks clarity and changes based on company size and what you need. While manual invoice processing costs around $31 per invoice, SAP Concur can lower this cost – but you’ll need to invest upfront.
SAP Concur Integrations
SAP Concur works with ERP systems of all types including SAP Business One, SAP Business ByDesign, SAP ECC, and SAP S4HANA. The platform gives you several ways to integrate based on your IT resources. You can use pre-built connectors for specific ERPs, import/export POs when needed, schedule file imports through FTP servers, or create custom connections with RESTful APIs. These options help businesses learn about their spending across all systems.
SAP Concur Pricing
SAP Concur uses custom pricing based on what your organization needs and how many transactions you make, unlike competitors who show clear pricing tiers. You’ll need to talk to sales to get a quote for this subscription service. Data shows the average yearly cost runs about $110,000, but prices vary by a lot depending on specific needs. Companies should compare these costs with the typical 29.2% savings in invoice processing expenses.
Stampli
Stampli uses artificial intelligence to build an invoice management system that works well for everyone—from AP teams to vendors. Billy the Bot, the platform’s AI assistant, studies your organization’s invoice patterns to handle routine tasks automatically.
Stampli Features
Billy the Bot stands at the heart of Stampli’s invoice management software. This AI tool automates data capture, coding, and approval workflows. The system learns your invoice patterns, recommends approvers based on expense policies, and spots potential errors or fraud. The platform puts all invoice communications right on the invoice itself, which makes team collaboration smooth throughout the process. Stampli’s vendor management tools let businesses create compliant onboarding workflows. Vendors can access their invoice and payment details through self-service options.
Stampli Pros
Stampli makes invoice processing up to five times faster than old methods. Companies cut their processing time by 75-80% after they start using it. The platform’s easy-to-use interface shows up in several Gartner reports, including Capterra’s Shortlist and SoftwareAdvice’s FrontRunners. Users get detailed audit trails and analytics dashboards that improve visibility. The platform also helps prevent fraud through customizable user permissions.
Stampli Cons
New users need time to adjust to the system. Billy the Bot sometimes has trouble with unusual invoice formats like handwritten documents. Some users mention limits when dealing with outsourced purchase orders and confirming receipts for 3-way matches. Credit memo processing can be tricky at times.
Stampli Integrations
Stampli connects with more than 70 ERPs and accounting systems, such as SAP, Microsoft, Sage, Oracle, and QuickBooks. The company stands out because its ERP experts build all connectors in-house instead of using third-party developers. Users can choose from three integration types: API for cloud ERPs, bridge for on-premises systems, and file integrations for other financial applications.
Stampli Pricing
The platform’s pricing changes based on organization size, workflow complexity, and chosen features:
| Factor | Details |
| Invoice Volume | Higher volumes qualify for discounts |
| User Access | Costs vary by number of users |
| Modules | Optional add-ons like Procurement, Payments |
| Implementation | Typically takes weeks, not months |
Stampli includes full automation capabilities in its core package, unlike competitors who charge extra for managed services.
BILL (Bill.com)
BILL has transformed from its Bill.com origins into a detailed cloud-based platform. The platform streamlines accounts payable and receivable processes for businesses of any size. It automates core financial functions and stands out among invoice management solutions.
BILL Features
The platform’s flagship feature automates invoices through Optical Character Recognition (OCR) and an Intelligent Virtual Assistant (IVA) to extract data automatically. This smart technology reads handwritten receipts and reduces manual data entry significantly. Businesses can create customizable multi-tier approval workflows that line up with their internal policies. On top of that, it handles multiple payment methods including ACH, checks, credit cards, virtual cards, and international wire transfers to over 137 countries in 100+ currencies.
BILL Pros
Teams can cut their invoice processing time by half and focus on strategic tasks instead. The platform’s centralized inbox keeps employee inboxes clean while giving finance teams instant visibility into incoming bills. Users love BILL’s user-friendly interface. One reviewer shared, “I am using BILL on a day-to-day basis, and the user interface is so simple”. The unlimited online document storage makes tracking financial records and auditing easier.
BILL Cons
The platform’s customer support gets mixed feedback. Users report slow response times and problems that take too long to fix. A customer stated the support team showed “Complete disregard for their users”. The platform struggles with ERP and accounting software integrations, especially when syncing large data sets. Payments to international vendors can take “more than a week” to process.
BILL Integrations
The platform syncs directly with major accounting systems like QuickBooks, NetSuite, Xero, Sage Intacct, and Microsoft Dynamics. Users can import and export data through CSV templates with other accounting systems. BILL connects beyond accounting to expense management tools, tax services, CRM systems, and human resources information systems.
BILL Pricing
BILL’s subscription comes in four tiers with different capabilities:
| Plan | Monthly Cost Per User |
| Essentials | USD 45.00 |
| Team | USD 55.00 |
| Corporate | USD 89.00 |
| Enterprise | Custom pricing |
Transaction fees cost USD 0.59 for ACH payments, USD 1.99 for checks, and 2.9% for credit card payments. Accounting professionals can join BILL’s partner program starting at USD 49.00 monthly.
Rossum.ai
Rossum.ai transforms invoice management with its AI-first document processing powered by proprietary LLM technology. This cloud-based platform handles documents through multiple channels and helps businesses automate their invoice workflows.
Rossum Features
Rossum’s intelligent document processing platform stands out by extracting data from invoices with its proprietary transactional LLM. The system supports 276 languages and reads handwriting. User feedback helps the system improve continuously, which ensures high accuracy without hallucinations. The platform automates workflows from document receipt to payment. It validates data against ERPs, master data, and third-party APIs. The system can figure out missing information like GL codes and tax codes. It standardizes data formats and applies complex business logic before data moves to downstream systems.
Rossum Pros
Users save up to 80% of their document processing time with this platform. The AI engine learns from every interaction and achieves accuracy rates above 99%. The system’s template-free approach adapts to any document layout without needing predefined templates. The platform handles documents in 99% of common global languages and provides live document translation that makes validation easier.
Rossum Cons
Large invoices take longer to process, especially during month-end peaks. The platform sometimes struggles to extract data from documents with complex formatting or unusual layouts. Arabic OCR comes with accuracy challenges. Small businesses might find that Rossum can get pricey.
Rossum Integrations
Rossum connects seamlessly with major ERPs like Microsoft Dynamics AX, Dynamics 365, SAP, NetSuite, and Coupa. The platform’s certified integrations with SAP and Coupa guarantee security, performance, and continued interoperability. Security standards guide each integration, and regular SOC 2 and ISO 27001 certification compliance audits ensure safety.
Rossum Pricing
The platform offers different pricing tiers based on document volume and workflow complexity:
| Plan | Starting Price | Features |
| Starter | USD 18,000/year | Unlimited seats, email/API uploads, Aurora Document AI |
| Business | Custom | Custom business logic, master data matching, duplicate detection |
| Enterprise | Custom | SSO options, sandbox environment, extended master data matching |
| Ultimate | Custom | Multi-document transactions, custom domain for email ingestion |
Customers must sign up for at least one year. Support teams are ready to help 24/7.
Tipalti
Tipalti provides a unified platform for invoice management that handles everything from capture to payment for multiple entities and currencies. The cloud-based solution makes global payables operations smoother through intelligent automation.
Tipalti Features
Tipalti’s AI Smart Scan technology extracts invoice data at header and line-item levels from different formats without extra manual work. The platform has complete e-invoicing integration with Peppol network connectivity that ensures global compliance. Tipalti automates invoice coding by detecting patterns and supports tax code automation to minimize errors. AI-driven approval routing and collaboration tools help teams resolve issues quickly.
Tipalti Pros
The platform’s automation reduces payables processing time by up to 80%. Financial controls become stronger and regulatory compliance improves across borders. The system automates supplier communications at every step and reduces AP workload by a lot. Most companies can implement Tipalti within weeks instead of months.
Tipalti Cons
Adding invoice lines individually for different departments takes too much time. Many users find the login process frustrating. The invoice payment process requires too many steps according to some reviewers.
Tipalti Integrations
Tipalti works with major ERPs like Sage products, QuickBooks, Xero, NetSuite, Microsoft Dynamics, SAP S/4HANA, and Oracle Fusion. The platform has pre-built integrations for performance marketing platforms, HRIS, SSO, Slack, and credit cards.
Tipalti Pricing
| Plan | Price | Key Features |
| Select | Not specified | Unlimited users, AI Smart Scan, supplier portal |
| Advanced | $199/month (US) | Select features plus PO matching, multi-entity support, global payments |
| Elevate | Custom pricing | Advanced features plus global multi-currency fund management |
Every plan comes with unlimited user access without per-seat licensing fees.
Zoho Invoice
Zoho Invoice gives small businesses a resilient invoice management system at no cost. Users can send up to 1,000 invoices per year without paying subscription fees.
Zoho Features
Zoho Invoice has customizable invoice templates that showcase your brand across all communications. The system supports more than 10 languages, which lets you invoice clients in their preferred language. Time is valuable, so Zoho helps you schedule automated invoices, set up recurring billing, and send payment reminders without manual work. You can add digital signatures through Zoho Sign integration that complies with ESIGN and eIDAS e-signature laws. The platform’s customer portal lets clients view all their transactions in one convenient location.
Zoho Pros
Zoho’s accessible interface helps you create invoices in just minutes. The mobile app makes invoice management portable, as one user states: “Its easy-to-use interface on the phone app makes it an excellent small business tool”. We noticed significant reductions in desk time thanks to automated payment reminders. Your customer database stores information for years, which helps build stronger client relationships.
Zoho Cons
Zoho Invoice has some limitations – most notably the 1,000 invoice yearly cap. Some users face login problems with the OneAuth system. The platform doesn’t work with Zoho Inventory, which creates challenges for businesses that need combined inventory-invoicing solutions.
Zoho Integrations
Zoho Invoice combines smoothly with Zoho CRM, Zoho Books, and Zoho Projects. The platform works with more than 10 payment gateways to handle secure global transactions. You can also connect with Google Workspace, Office 365, Slack, and Zoho Analytics for better reporting capabilities.
Zoho Pricing
| Plan | Cost | Invoice Limit |
| Free | $0 | 1,000 per year |
The free plan includes unlimited document storage and unlimited users.
Sage Intacct
AICPA-endorsed Sage Intacct is a native cloud financial management solution with reliable invoice management capabilities. The platform provides four automatic upgrades each year that deliver continuous innovation without disruption.
Sage Intacct Features
Sage Intacct shines with its dimensional chart of accounts and up-to-the-minute financial dashboards that provide instant visibility. The system features AI-powered continuous accounting with multientity consolidation. The platform automates the entire invoicing process by creating professional invoices for accounts receivable and optimized accounts payable. It can intelligently identify vendors and extract invoice details automatically.
Sage Intacct Pros
The software’s true multi-tenant cloud architecture gives users access from anywhere. It has earned recognition for exceptional approval workflows that support well-laid-out, multilevel processes. Businesses report up to 80% time savings through automation. The system flags duplicate invoices automatically and reduces processing time significantly.
Sage Intacct Cons
The software’s operational functionality doesn’t suit every business, especially when you have manufacturing needs. Users need third-party tools to manage payroll. Customizations become difficult to modify after implementation.
Sage Intacct Integrations
Sage Intacct connects with over 350 software vendors and payment processors like Stripe. Developers can access APIs to build custom integrations.
Sage Intacct Pricing
The core financial package costs approximately $8,500/year for single user/entity. Most customers spend between $15,000-$35,000 annually.
Benefits of Invoice Management Software
Modern invoice management software revolutionizes financial operations. These tools reshape how businesses handle their entire billing process.
- Faster Processing: Automated invoice software cuts processing time by up to 70%. Traditional manual methods take 14.6 days to process a single invoice. This time drops to just 2.9 days with automation. Your finance team can focus on tasks that stimulate business growth.
- Improved Accuracy: Manual invoice processing leads to errors. 68% of businesses find mistakes in more than 1% of their invoices. Invoice systems reduce these errors through standard templates, automated data extraction, and validation checks. Annual payment errors drop from 2% to 0.8%.
- Better Cash Flow: Quick invoice processing helps manage cash flow better. Businesses can predict their financial needs through faster payment cycles and clear visibility of pending invoices. Quick, consistent payments also build stronger supplier relationships.
- Cost Savings: Numbers show significant financial benefits. Manual processing costs $15-$25 per invoice while automation costs just $2. Companies using complete automation spend $1.45 per invoice compared to $6.30 for manual methods. This represents an 80% reduction in processing costs.
How to choose the Right Invoice Management Solution
Choosing the right invoice management system needs a good look at several key factors. The best way to start is to get a full picture of your current processes and spot the roadblocks that need fixing.
Your business size and invoicing needs shape your choice. Small businesses and freelancers work better with simple tools, while bigger companies need more advanced automation and flexible options. The core features should include automated data capture, smart invoice matching, custom approval workflows, and immediate cash flow tracking.
Your invoice software must blend with your existing accounting, ERP, and CRM systems. This connection stops duplicate entries and makes sure data moves smoothly between systems.
Success depends on how well your team uses the system. The best options come with user-friendly designs and complete training materials that make learning quick and easy. You’ll want options to add your brand through logos, colors, and custom templates.
Security is crucial. The software must meet industry standards like PCI DSS for payments and GDPR for privacy. Basic features should include encryption, access controls, and audit trails.
Look beyond the original costs when you check pricing. Factor in subscription plans, extra user fees, and potential returns. Pick software that can handle more invoices as your business grows.
Conclusion
Businesses need the right invoice management software to optimize financial operations and improve productivity. We looked at nine solutions that offer different strengths for various business needs. A freelancer might prefer Zoho’s free plan, while enterprises could benefit from SAP Concur or Sage Intacct’s complete financial management.
Manual invoice processing no longer works for modern businesses. Automated solutions reduce processing time by 70% and cut costs from $15-25 to about $2 per invoice. This lets your finance team tackle strategic projects instead of getting buried in paperwork.
Your business’s specific needs should drive the selection process. FreshBooks or Zoho Invoice work well for small teams. Larger organizations with complex approval workflows might find Stampli or Tipalti more suitable. Companies dealing with international transactions need solutions that handle multiple currencies like Xero or BILL.
Financial document management demands strong security measures. Your chosen platform must provide strong encryption, access controls, and comply with PCI DSS and GDPR regulations.
AI and machine learning will shape invoice management’s future. Rossum.ai shows how AI revolutionizes document processing with template-free approaches and continuous learning. These technologies will make invoice management faster and more accurate.
The right invoice management software does more than upgrade technology – it changes your business’s entire financial operation approach. A careful selection based on your needs will help your organization achieve better efficiency, accuracy, and financial control in the coming years.
FAQs
Q1. What are the top free invoice management software options?
Some of the best free invoicing software include Wave for growing businesses, Zoho Invoice for free invoicing with mini-CRM features, and Square for businesses with in-person sales. These options offer robust features without any cost, making them ideal for small businesses and freelancers.
Q2. Is Zoho Invoice completely free to use?
Yes, Zoho Invoice is entirely free for small businesses. It allows users to send up to 1,000 invoices annually without any subscription fees, making it an excellent choice for startups and freelancers looking for a cost-effective invoicing solution.
Q3. Which Microsoft program is most suitable for creating invoices?
Microsoft Excel is generally considered the best Microsoft program for creating invoices. It offers flexibility in design, calculation capabilities, and data management tools that are ideal for more complex invoicing scenarios. However, Microsoft Word can also be used for simpler, more text-heavy invoices.
Q4. What are the key features to look for in invoice management software?
Important features include customizable invoice templates, automated invoice generation, payment tracking, integration with accounting software, reporting capabilities, and client management tools. Advanced features like OCR technology for data extraction and AI-powered approval routing are also valuable for larger businesses.
Q5. How can invoice management software benefit my business?
Invoice management software can significantly improve your business operations by speeding up invoice processing (up to 70% faster), reducing errors, enhancing cash flow management, and cutting costs. It can lower invoice processing costs from $15-25 per invoice to around $2, while also improving accuracy and providing better financial visibility.