If you search for invoicing software, you will find dozens of lists crowning a "best" tool, usually the one that pays the highest commission. We would rather give you a better way to decide: what each plan costs to start, where its limits bite, and what you pay outside the subscription.
This guide compares four products that independent professionals often consider: FreshBooks (opens in a new tab), Bonsai (opens in a new tab), Zoho Books (opens in a new tab) and Xero (opens in a new tab). We describe what each company says it does, who it may suit and what to check before paying. We do not rank them, because the right one depends on how many clients you bill, whether you want proposals in the same place and whether an accountant is involved.
The short version
- FreshBooks (opens in a new tab) is invoicing-led, with expenses, time tracking and accounting around it. Its entry plan is limited to five billable clients.
- Bonsai (opens in a new tab) is built around proposals, contracts and invoices in one place for service businesses. Its cheapest plan does not include invoicing.
- Zoho Books (opens in a new tab) is fuller accounting, with a free plan for businesses under a revenue threshold and strong ties to other Zoho apps.
- Xero (opens in a new tab) is built around bank feeds and bookkeeping, often used alongside an accountant. Its lowest US plan caps monthly invoices and bills.
Plans, prices and limits side by side
| Detail | FreshBooks | Bonsai | Zoho Books | Xero |
|---|---|---|---|---|
| Starting price | Lite: $23/month (standard price) | Essentials: $25/month billed monthly ($19/month billed annually), per user. This is the lowest plan that lists invoices and payments | Free: $0 while revenue stays under $50K for the financial year (Zoho’s wording). Paid plans start at Standard: $20/month ($15 billed annually) | Early: $27/month (standard price). New US customers have been offered 80% off for three months ($5.40/month), a promotion rather than the regular price |
| What the entry plan limits | Up to 5 billable clients. Extra team members are $11 per month each | Basic ($15/month monthly, $9 billed annually) lists time tracking, tasks, CRM, and unlimited clients and projects, but not invoices, proposals or contracts | Free plan: up to 1,000 invoices and 1,000 expenses a year, 1 user plus 1 accountant, email support, 50 receipt autoscans a month. Bank feeds are not listed on Free | Early: up to 20 invoices and quotes and 5 bills per month; the limit applies to both approving and sending invoices. Multi-currency and project time tracking are not included |
| Next plans up | Plus: $43/month, up to 50 clients, adds proposals and double-entry accounting reports. Premium: $70/month, unlimited clients | Premium: $39/month ($29 billed annually). Elite: $59/month ($49 billed annually, 3-user minimum) | Standard: 3 users, bank feeds, up to 5,000 invoices a year. Professional: $50/month ($40 billed annually), 5 users, multi-currency, up to 10,000 invoices a year | Growing: $59/month, no invoice or bill limit listed. Established: $97/month, adds multi-currency and project time tracking |
| Free plan or trial | 30-day free trial, no credit card required, according to FreshBooks. No permanent free plan listed. Introductory discounts were advertised (for example $1/month for the first year on Lite); they change often and are not the standard price | 7-day free trial. No free plan listed | A free plan (while under the revenue threshold) plus a 14-day free trial of paid plans | No free plan listed. The page we checked advertised the new-customer discount and a one-month-free banner without clear terms, so check current offers |
| Payment reminders | Automated late-payment reminders are listed on every plan, including Lite | Per Bonsai’s help center, automatic reminders are on by default (a week before, a day before, a week after, and again once more than two weeks overdue) and can be changed per project or invoice. The article does not say which plans include them | “Automate payment reminders” is listed on every plan, including Free | Xero’s invoicing page describes automated reminders before and after the due date, but the pricing page does not say which plans include them. Confirm for the Early plan |
| Client-management features | Client portal, estimates, recurring invoices and time tracking listed on every plan; proposals start on Plus | Client portal, proposals and contracts, forms, scheduling and expense tracking are listed from Essentials | Customer portal and recurring invoices listed on Free; time billing and project profitability are listed from Professional | Quotes, bank reconciliation and no per-user fees. A client portal is not described on the pricing page |
| Payment processing | Online card and bank payments available. FreshBooks’ FAQ lists cards at 2.9% + $0.30 and bank transfers (ACH) at 1%, and an Advanced Payments add-on is listed at $20/month. Read the fine print before relying on these figures | Bonsai Payments (US, UK, Canada, Australia): cards 2.9% + $0.30, American Express 3.25% + $0.30, ACH 1% (minimum $1). A 2.5% currency-conversion fee applies to invoices paid internationally. Offline methods such as a wire or check carry no Bonsai fee, but you mark the invoice paid yourself | Accepts online payments through payment gateways, which Zoho does not name on the pricing page. Fees depend on the gateway you choose | Online invoice payments are included, but payment fees apply. The amount depends on the payment service you connect |
| May not suit you if | You expect to bill more than five clients on the entry plan, or you need several team members | You only want to send invoices, or many of your clients pay from other countries through Bonsai Payments | You expect to pass the free revenue threshold soon, or you only need simple invoices and find accounting software heavy | You send more than 20 invoices a month and do not want to pay for the next plan, or you want a built-in client portal and proposals |
| Where we checked | FreshBooks pricing page (opens in a new tab) | Bonsai pricing page (opens in a new tab) | Zoho Books pricing page (opens in a new tab) | Xero pricing page (opens in a new tab) |
Where the limits bite
A low starting price is only useful if the plan fits your work. These are the four limits most likely to change the real cost, all from the vendors' own pages.
- Client count (FreshBooks). The entry plan, Lite, is listed at up to five billable clients. If you bill six, the next plan listed, Plus, is $43 a month for up to 50 clients. For a freelancer with two or three retainers, Lite may be plenty. For someone with a steady flow of small projects, count your clients over a year before you choose.
- Features by plan (Bonsai). The lowest plan, Basic, lists time tracking, tasks and a CRM but not invoices, proposals or contracts. Those start at Essentials. Compare Essentials, not Basic, with the other tools. Pricing is also per user, which matters only if you add people.
- Revenue threshold (Zoho Books). The free plan is available while your revenue for the financial year stays under $50K, with limits on invoices, expenses, users and bank feeds. If your income is heading past that, plan for the Standard plan.
- Monthly invoice cap (Xero). The Early plan is limited to 20 invoices and quotes and 5 bills a month, and Xero says the invoice limit applies to both approving and sending. Someone sending a handful of large invoices will not notice. Someone invoicing per session or per order may hit it quickly.
Payment processing: the cost outside the subscription
Most of these tools let clients pay invoices online, and that is where processing fees come in. They are separate from the subscription and are charged by the payment service, not by the software company's plan price.
Here is what Bonsai publishes for Bonsai Payments in the US: 2.9% + $0.30 on cards (3.25% + $0.30 on American Express), 1% on ACH bank transfers (with a $1 minimum), and an extra 2.5% currency-conversion fee on invoices paid internationally. FreshBooks' FAQ lists cards at 2.9% + $0.30 and bank transfers at 1%. Xero and Zoho Books work with payment gateways, so the fee depends on the provider you connect.
None of this is unusual. Card processing generally carries fees of this size, and the fees are published, not hidden. The point is to include them when you compare. If most of your clients pay by bank transfer, or you can invoice in the client's currency, the costs look very different from a client who pays a large invoice by card from abroad.
How to choose: start with your situation
Choose by what you need most
- "I mostly need to send invoices and get paid." Look first at invoicing-led tools such as FreshBooks (opens in a new tab). Check the client limit on the plan that fits your budget.
- "I want proposals, agreements and invoices in one system." Bonsai (opens in a new tab) is built around that service-business workflow. Check whether you will use the extra features, since unused ones are clutter, and price Essentials, not Basic.
- "I want real accounting, and I might work with an accountant." Xero (opens in a new tab) and Zoho Books (opens in a new tab) are accounting products first. Ask your accountant which they prefer, since compatibility with your bookkeeper often matters more than any feature list.
- "I want to start free." Zoho Books (opens in a new tab) lists a free plan while revenue is under $50K. Read its limits before building on it. If you are very small, our free invoice tracker might be all you need.
Choose by your situation
| Your situation | What to prioritize | Worth checking |
|---|---|---|
| Just starting, a few clients | Low cost, easy invoicing, a free plan or trial | Client limits on entry plans; Zoho's revenue threshold |
| Retainers and recurring work | Recurring invoices and automatic reminders | Whether reminders are customizable |
| Proposal-heavy work (design, consulting, marketing) | Proposals and agreements alongside invoices | Whether the plan that includes them fits your budget |
| Sales tax, VAT or multiple currencies | Tax handling and multi-currency support | Edition for your country; which plan unlocks multi-currency |
| Working with a bookkeeper or accountant | Accountant access, bank feeds, clean exports | What your accountant already uses |
| Invoicing many small jobs each month | Volume limits | Xero Early's monthly invoice cap |
| Planning to scale into a team | User permissions and integrations | Per-user pricing as you grow |
Questions every solo should ask any vendor
- What does it cost at my volume, including payment processing fees and any promotional price ending, not only the headline subscription?
- What happens if I outgrow the plan? Is the next tier a small step or a big jump?
- How easily can I export all my data? Test this during the trial.
- Does it support my country, currency and tax needs? Editions and features can differ.
- Which of my other tools does it connect to? Check your actual apps. A marketplace of integrations is not the same as your integration.
- What does support look like when something breaks? Look at hours, channels and documentation.
A 30-minute trial plan
Do not evaluate software by clicking around. Run the same real scenario in each product you are considering, and compare.
- Create one real client with a billing contact and, if relevant, a PO number field.
- Build one real invoice with three line items, a deposit or partial payment if you use them, and your payment terms.
- Send it to yourself and look at it as your client would. Is it clear? Is paying easy?
- Set a reminder rule for before and after the due date. How flexible is it?
- Record a payment and see how the status updates.
- Run a report or export that your accountant or tax preparer would want.
- Try it on your phone. Can you invoice from your phone if you work on the move?
- Note the friction. Which product made you think the least?
The product that wins is not the one with the most features. It is the one you will still be using, without resentment, in six months.
What we have not covered
We have not covered payroll, inventory depth, country-specific compliance, tax features, or integrations with your particular apps. Those vary too much to state responsibly, and they are where you should focus your own research. Prices here are US prices in US dollars, and we have not covered other regions. We also have not included other worthwhile tools. This is a focused comparison, not a market survey.
Frequently asked questions
Which is cheapest?
On sticker price, Zoho Books is free while your revenue is under $50K, and its paid plans start at $20 a month ($15 billed annually). Among the others, FreshBooks Lite is $23 a month, Xero Early is $27 a month, and Bonsai's invoicing plan, Essentials, is $25 a month per user ($19 billed annually). Those are standard prices as of October 8, 2026. The cheapest one for you depends on your client count, invoice volume, currency and how clients pay.
What happens when I get a sixth client on FreshBooks Lite?
FreshBooks lists Lite as limited to five billable clients. The next plan up, Plus, is listed at $43 a month for up to 50 clients. Check how FreshBooks defines a billable client and what happens at the limit before you rely on the entry plan.
Does Bonsai's cheapest plan include invoicing?
Based on its pricing page, no. Basic lists time tracking, tasks, a CRM and unlimited clients and projects. Invoices and payments, proposals and contracts start at Essentials.
Is Zoho Books really free?
Zoho lists a free plan that is available as long as your revenue for the financial year does not exceed $50K. It has limits, including up to 1,000 invoices and 1,000 expenses a year and one user plus one accountant, and it does not list bank feeds. Confirm the eligibility terms for your country on Zoho's pricing page.
Does Xero's lowest plan limit invoices?
On the US pricing page we checked, Early is limited to 20 invoices and quotes and 5 bills a month. The other plans list no such cap. Check the current limits for your country.
Do I need accounting software or just invoicing software?
If your goal is sending invoices and seeing who owes you, invoicing features are enough. If you also want to reconcile your bank account, track expenses and generate tax-ready reports, accounting software does more. See Do you actually need invoicing software?.
Can I switch later?
Usually yes, but moving history between tools takes effort. Check export options up front, and consider keeping your own backup of invoices.
Are these tools legal or tax advice?
No. They record and organize financial data. They do not replace an accountant, and features like tax estimates depend on your location and situation.
Why do you mention commissions?
Because it is the honest thing to do. We may earn a commission from some links, at no extra cost to you. We tell you before you click, and we write the comparison the same way either way.
Sources and verification
- FreshBooks pricing (US)
- Bonsai pricing
- Bonsai help center, what it costs to get paid via Bonsai
- Bonsai help center, automated reminders for invoices
- Zoho Books pricing (US)
- Xero pricing (US)
- Xero invoicing (US)
Product details were checked against each company’s own website on October 8, 2026. Features and pricing change often, so confirm current details before you buy. We have not hands-on tested these products. This is general information, not legal, tax or financial advice. Spot an error? Tell us and we’ll correct it. See our editorial standards.