Invoicing
Zoho Invoice: the complete independent guide
Zoho Invoice is free invoicing software for freelancers and small businesses: quotes, invoices, payment reminders and online payment. This guide explains what it does, what it leaves out, how to set it up in an hour and how to know when it is time to move to Zoho Books.
- Best for
- Freelancers and very small businesses that invoice clients
- Price
- Free, with limits on volume
- What it is not
- Accounting software: no ledger and no bank reconciliation
- Languages
- Invoices in English, French and many other languages
- Upgrade path
- Zoho Books, with your data carried over
What it is
Zoho Invoice does one job: getting you paid. You create a quote, turn it into an invoice when the client accepts, send it by email with a link to pay online, and let the system send reminders until the money arrives.
It also covers what surrounds invoicing for a small service business: tracking time on projects and billing it, recording expenses to rebill, recurring invoices for retainers and a portal where clients see everything they owe.
It is not accounting. There is no chart of accounts to maintain, no bank reconciliation and no balance sheet. Zoho gives it away because many of its users later grow into Zoho Books, which is the same engine with accounting added.
Who it fits
A good fit when
- You invoice from a word processor or a spreadsheet and lose track of who has paid.
- You want clients to pay by card or bank transfer from the invoice itself.
- You bill by the hour and need time tracking tied to invoices.
- Your accountant does the books elsewhere and only needs your invoices and expenses.
Look elsewhere when
- You want to see profit, reconcile your bank account or file sales tax from the same tool. Start with Zoho Books.
- You sell products from stock. You need inventory, which means Zoho Books or Zoho Inventory.
What it does well
- Quotes and invoices
- Templates in your colours, quotes that clients accept online, conversion to an invoice in one click and credit notes.
- Online payments and reminders
- Connect a payment gateway so clients pay from the invoice, and schedule automatic reminders before and after the due date.
- Recurring invoices
- Bill retainers and subscriptions on a schedule, with automatic charging where the gateway allows it.
- Time and expenses
- Track time by project with a timer, record billable expenses and add both to the next invoice.
- Client portal
- Clients see their quotes, invoices, payments and statements in one place.
Editions and pricing explained
Zoho Invoice has a single free plan. Zoho sets limits on volume, such as the number of invoices or customers per year, and these have changed over time. Check the current limits on Zoho's site.
| Edition | Made for | What it adds |
|---|---|---|
| Free | Freelancers and small businesses | The full invoicing feature set, with limits on yearly volume and on the number of users. |
When you reach the limits, or when you need accounting, the natural step is Zoho Books. Your customers, items and invoices move with you.
How to set it up properly
Enter your business and tax details
Legal name, address, tax registration numbers and the taxes you charge. In Canada, set up GST/HST and QST or PST as they apply to you.
Design one template
Logo, colours, payment terms and the legal mentions your jurisdiction requires. Create a French and an English version if you invoice in both.
Connect a payment gateway
Clients who can pay in two clicks pay sooner. Check the fees of the gateway before choosing.
Set reminders and import clients
A polite reminder a few days before the due date and firmer ones after it, then import your client list.
Rather have a specialist do it? Talk to TECHMA
Common problems and how to fix them
Invoices land in the client's spam folder
Send from your own domain with its authentication records set up, and tell new clients to expect the first invoice.
Wrong tax on an invoice
The tax is attached to the item or the client incorrectly. Set the default tax per client location and check one invoice per case.
You have outgrown it
If you are exporting invoices to rebuild your accounts elsewhere every month, move to Zoho Books and connect your bank.
Adding AI
For a freelancer, an assistant such as Claude or ChatGPT helps most with the words around invoicing: a clear quote from rough notes, a firm but polite reminder, or a summary of who owes what at month end.
Connected through Zoho's API, it can prepare invoices from your time entries for you to approve.
Questions people ask
Is Zoho Invoice really free?
Yes. Zoho Invoice is free, with limits on volume. Payment gateways charge their own transaction fees.
What is the difference between Zoho Invoice and Zoho Books?
Zoho Invoice handles quotes, invoices, payments, time and expenses. Zoho Books includes all of that plus full accounting: bank reconciliation, bills, sales tax reports and financial statements.
Can we move from Zoho Invoice to Zoho Books?
Yes. The upgrade keeps your customers, items and invoices, and adds the accounting features on top.
Can Zoho Invoice issue invoices in French?
Yes. Templates and client communications can be in French, and you can keep separate templates for each language.
Want it set up right the first time?
TECHMA implements Zoho for companies in Canada, the United States and abroad: setup, data migration, automation, AI and team training. The first call is free.
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