# What is the difference between invoice software and accounting software?
Invoice software focuses specifically on creating, sending, and tracking invoices and payments, while accounting software provides comprehensive financial management including invoicing, expense tracking, bank reconciliation, financial reporting, payroll, tax preparation, and general ledger. Invoice software is simpler and cheaper ($0-50/month), ideal for freelancers and very small businesses that just need to bill clients and track payments. Accounting software ($20-300+/month) is more comprehensive, suitable for growing businesses that need full bookkeeping, financial reporting, multi-user access, and tax compliance. Many accounting platforms (QuickBooks, Xero, FreshBooks) include robust invoicing features, so you get both in one system. For most businesses, integrated accounting software is the better choice as you grow beyond simple invoicing needs.
## Key Takeaways
- Invoice software focuses specifically on creating, sending, and tracking invoices and payments, while accounting software provides comprehensive financial management including invoicing, expense tracking, bank reconciliation, financial reporting, payroll, tax preparation, and general ledger.
- Invoice software is simpler and cheaper ($0-50/month), ideal for freelancers and very small businesses that just need to bill clients and track payments.
- Accounting software ($20-300+/month) is more comprehensive, suitable for growing businesses that need full bookkeeping, financial reporting, multi-user access, and tax compliance.
## Related Topics
- invoice vs accounting software
- invoice software
- accounting software
- invoicing platform