Cheap invoicing options

A solo contractor can now pick between three very different invoicing bets: Wave charges $0 for its starter tier, Xero’s United States “Early” plan lists at $25 a month, and FreshBooks’ “Premium” plan lists at $21 a month, with temporary discounts splashed across both paid sites. (waveapps.com) (xero.com) (freshbooks.com) The first split is simple: Wave is selling free entry, while Xero and FreshBooks are selling more accounting structure from day one. Wave’s starter tier includes unlimited estimates, invoices, bills, and bookkeeping records, which is enough for a one-person business that mainly needs to send bills and get paid. (waveapps.com) FreshBooks is taking the opposite angle and charging for a package that bundles invoicing with more service-business tools. Its pricing page shows online card and digital wallet payments, recurring invoices, late fees, reminders, proposals, retainers, time tracking, and expense tracking inside its paid plans. (freshbooks.com) Xero sits closer to accounting software that happens to invoice well. Its United States pricing pages say every plan includes bank connections, reporting, sales tax, purchase orders, files, analytics, and app access, and Xero Central says all plans also include unlimited users. (xero.com) (central.xero.com) That unlimited-user point changes the math if a contractor expects to add a bookkeeper or partner. FreshBooks charges $11 a month per extra team member, while Xero says it does not charge per-user license fees. (freshbooks.com) (xero.com) The fine print matters more than the headline price on Xero. Xero Central says the Early plan is capped at 20 invoices and quotes and 5 bills each month, so a freelancer with a handful of clients may fit, but a busy agency can hit the ceiling fast. (central.xero.com) Wave’s free plan also has a catch, but it shows up when money moves instead of when invoices are sent. Wave says online card payments cost 2.9% plus 60 cents per transaction, and American Express costs 3.4% plus 60 cents, so the software can be free while collections still take a cut. (waveapps.com) FreshBooks does the same kind of upsell in a different place. Its pricing page lists add-ons like Advanced Payments for $20 a month and Payroll starting at $40 a month plus $6 per user, which means the advertised monthly price is only the base layer if you want more back-office tools. (freshbooks.com) So the real choice is less about a $0, $21, or $25 sticker and more about what kind of business you already are. A designer sending a few invoices can live inside Wave, a consultant billing time and retainers may prefer FreshBooks, and a contractor who wants bank feeds, reports, tax features, and extra logins without per-seat fees may end up in Xero. (waveapps.com) (freshbooks.com) (xero.com)