5 Best Invoice Software for Contractors

Invoice software for contractors is a specialized tool built to handle the unique billing challenges of construction, plumbing, electrical, and other trades. Unlike generic invoicing apps, it helps you create detailed, job-based invoices that include labor hours, materials, subcontractor costs, and progress payments. 

It tracks estimates, change orders, and partial payments across multiple projects, so every dollar of work is accounted for. The right software also integrates with your accounting tools, automates reminders for overdue payments, and gives you a clear view of your financials in real time.

Key Takeaways

• Invoice software for contractors simplifies job-based billing, ensuring every labor hour, material, and milestone is accurately tracked.
• Specialized contractor invoicing tools improve cash flow and automates reminders, online payments, and recurring billing.
• Mobile access and estimate-to-invoice conversion allow contractors to create and send invoices directly from the field.
• Integrations with accounting and CRM systems reduce manual data entry and provide a clear view of financial health.
• DepositFix stands out as the top choice for service-based contractors thanks to its automation, workflow integration, and professional invoice customization.

What Is an Invoice Software for Contractors

An invoice software for contractors is a digital solution designed specifically to help trade professionals manage the financial side of their projects with accuracy and ease. Unlike general invoicing tools, contractor-focused platforms are built to handle the complexities of job-based billing, where every project involves different materials, labor costs, subcontractors, and payment schedules. 

These tools allow contractors to create detailed, professional invoices that break down charges by task, phase, or project, ensuring complete transparency for clients. They also support features like progress billing, where payments are made in stages as work is completed, along with automated tax calculations, expense tracking, and integration with accounting systems. Many also include time tracking, estimate-to-invoice conversion, and mobile access, so contractors can generate and send invoices directly from the field.

Why Contractors Need a Specialized Invoice Software

Managing invoices as a contractor is more complex than sending a simple bill. Each project involves multiple jobs, materials, and milestones that require accurate tracking and clear documentation. In a 2025 national study of U.S. contractors, 70% reported experiencing payment delays, and 76% said they’d offer a discount for faster payment. A specialized invoice software is built to handle these industry-specific needs and simplify financial management from start to finish.

Here’s why contractors benefit from using dedicated invoicing software:

• Handles complex project billing – Contractor projects often involve multiple stages, change orders, and partial payments. Specialized invoicing software supports progress billing, retainers, and milestone payments. It ensures that every phase of the job is accurately documented and billed without confusion.
• Tracks labor and materials accurately – Manually calculating costs for hours worked, subcontractors, and materials can lead to costly errors. Contractor invoicing tools automatically pull data from timesheets, purchase orders, and expense records, giving you precise, itemized billing that reflects actual work performed and resources used.
• Improves cash flow – Late or missed payments are a common struggle for contractors. With automated payment reminders, recurring invoices, and online payment options, invoicing software helps you get paid faster and maintain steady cash flow. Some tools even let clients pay directly from the invoice with credit card or ACH transfer.
• Saves time on admin tasks – Instead of spending hours on manual data entry, contractors can generate invoices directly from estimates or timesheets with just a few clicks. This automation not only saves valuable time but also minimizes errors and frees you to focus more on project work than on paperwork.
• Ensures professionalism – A clean, branded invoice communicates reliability and competence. Contractor invoice software lets you add your logo, customize invoice templates, and include detailed project descriptions, helping you present a polished image that builds client trust and confidence.
• Integrates with accounting tools – Many contractor invoicing solutions connect directly with accounting platforms like QuickBooks, Xero, or FreshBooks. This integration ensures all financial data stays in sync, reducing duplicate entry and keeping your books accurate for tax season or audits.
• Provides financial visibility – Beyond sending invoices, these tools give you valuable insights into your business’s financial health. You can monitor unpaid invoices, track revenue by project or client, and generate real-time reports to see where your profits come from and where you can cut costs. This data-driven visibility supports smarter business decisions and long-term growth.

5 Best Invoice Software for Contractors

Let’s take a look at the 5 best invoice software for contractors.

DepositFix

DepositFix is an invoicing and billing automation platform designed for service-based businesses such as contractors, consultants, agencies, and membership providers. It helps streamline the entire invoicing workflow, from automatically generating invoices based on project milestones or CRM events to tracking payments and managing client accounts. Unlike basic invoicing tools, DepositFix integrates tightly with other systems, like HubSpot, Monday, QuickBooks, and project management platforms, allowing businesses to connect their invoicing directly to client activity. Its focus on workflow automation, branded invoices, and real-time tracking makes it an ideal choice for contractors who want an invoicing process that runs smoothly without manual effort.

Key Features:

1. Automated invoice generation triggered by CRM or project workflows to save time and reduce manual errors.
2. Customizable, branded invoice templates with built-in options for online payments.
3. Real-time tracking of invoices with reminders for unpaid or overdue bills.
4. Support for recurring billing and progress billing for ongoing or phased projects.
5. Seamless integration with popular tools like HubSpot, Monday, and QuickBooks for full workflow visibility.

Why Choose It: DepositFix is perfect for contractors and service-based professionals who want more than just basic billing. It connects your invoicing to your client management system, automates repetitive tasks, and gives you a clear picture of your financials, all while maintaining a professional and streamlined client experience.

Joist

Joist is a mobile-first invoicing and estimating app designed specifically for trade contractors such as electricians, plumbers, and general builders. It helps professionals create quotes and invoices on-site, send them instantly, and track client approvals and payments, all from a smartphone or tablet.

Key Features:

1. Create professional estimates and convert them into invoices directly on mobile devices.
2. Customize invoices with branding, logos, and attachments for a professional look.
3. Accept online payments and deposits to get paid faster.
4. Sync with QuickBooks Online for accurate bookkeeping and reduced double entry.
5. Manage clients and jobs from one dashboard, including job history and client communication tracking.

Why Choose It: Joist is ideal for contractors who work on the go and want a simple, mobile-based invoicing and estimating tool that speeds up job approvals and payments.

Tradify

Tradify is a job management and invoicing platform built for trade professionals. It helps contractors track quotes, jobs, timesheets, and invoices in one place. Tradify connects the financial side of your business with job scheduling, time tracking, and staff coordination.

Key Features:

1. Create quotes and invoices quickly from mobile or desktop, including materials and labor costs.
2. Handle progress invoicing, deposits, and partial payments with ease.
3. Built-in time tracking to record hours worked and convert them into billable items.
4. Job scheduling tools to assign tasks and manage multiple projects simultaneously.
5. Integrations with accounting systems like QuickBooks and Xero for streamlined bookkeeping.

Why Choose It: Tradify is a great choice for contractors managing multiple projects or teams, offering a balance of job management, scheduling, and invoicing in one intuitive system.

Knowify

Knowify is a job costing and invoicing software designed for contractors, construction professionals, and subcontractors who need detailed financial tracking. It supports end-to-end project management, from estimating and contract management to progress billing and profitability reporting.

Key Features:

1. Create detailed estimates, invoices, and change orders specific to each project.
2. Track labor, materials, and subcontractor costs to maintain accurate job costing.
3. Manage contract changes and retainage with full visibility across project phases.
4. Mobile access for field workers to log time, expenses, and progress updates.
5. Integration with major accounting software for automatic syncing and reporting.

Why Choose It: Knowify is best for contractors managing larger or more complex projects that require close cost tracking, change order management, and profitability analysis.

Xero

Xero is a cloud-based accounting platform that includes robust invoicing features ideal for contractors who want their billing integrated with full financial management. It combines professional invoicing, expense tracking, and cash flow reporting in a single interface.

Key Features:

1. Create and send custom-branded invoices with online payment links.
2. Track invoice status, overdue payments, and send automatic reminders.
3. Manage expenses, job costs, and time tracking directly within projects.
4. Access full accounting reports and cash flow insights for business planning.
5. Connect to hundreds of third-party apps for project management, payroll, and CRM integration.

Why Choose It: Xero is ideal for contractors who need complete financial oversight, not just invoicing. It’s perfect if you want one platform to manage both day-to-day billing and overall accounting.

What Features to Look for When Choosing an Invoice Software for Contractors

Choosing the right invoice software for your contracting business can make the difference between smooth cash flow and constant billing headaches. The best solutions go beyond sending invoices; they help you manage projects, track costs, and stay organized from quote to payment.

Here are the key features to look for when choosing invoice software for contractors:

• Project-based invoicing – This means the software lets you tie each invoice to a specific job, task, or project phase. For contractors, projects often involve multiple parts (labor, materials, subcontractors, change orders) and they may span weeks or months. With project-based invoicing you can clearly associate each charge with the right job, ensure nothing slips through the cracks, reduce confusion on the client side, and maintain accurate cost tracking for every project.
• Progress and milestone billing – Many contracting jobs don’t get paid in one lump sum; instead, you may collect an upfront deposit, interim payments after major milestones (e.g., completion of framing, rough-in, finishing), and then a final payment on completion. Good invoice software supports these staged payments so you can invoice “when” work is completed, maintain steady cash flow, reduce your financial risk, and keep your clients aligned and committed.
• Estimate-to-invoice conversion – Often you start with an estimate or quote, your client approves it, work begins, and then you invoice. Instead of having to re-key the estimate or start the invoice from scratch, the software lets you flip that approved estimate into an invoice with one click. This reduces duplication, avoids data entry errors, shortens the time between approval and invoicing, and helps you appear more professional and responsive.
• Time and expense tracking – Contractors bill not only for materials, but for labor hours, equipment usage, subcontractor costs, and miscellaneous job-related expenses. When your invoicing system includes built-in or connected time tracking (for labor) and expense logging (for materials, parts, travel, etc.), you capture all billable items precisely and ensure your invoices reflect actual work done. This helps reduce under-billing, improves profitability, and provides documentation in case a client questions the charges.
• Automated payment reminders – Late payments are a common cash-flow problem for contracting businesses. Having your invoice software automatically send payment reminders and overdue notifications means you don’t have to rely on memory or manual follow-up. It increases the chances of getting paid on time, reduces the administrative burden of chasing payments, and helps maintain smoother cash flow and better client relationships.
• Online payment options – The faster you make it for a client to pay, the faster you’ll actually be paid. Invoicing software that lets clients pay directly from the invoice via credit card, bank transfer, ACH, or other digital payment methods removes friction. When the payment method is built into the billing process, you reduce delays, reduce excuses, and make it easier for your clients, which in turn reduces your waiting time.
• Mobile access – As a contractor you’re often out in the field, not always at a desk. Having a mobile-friendly invoicing tool (apps or responsive web) means you can create estimates, send invoices, track payment status and capture expenses right from the job site, van, or wherever you are. This immediate access keeps your billing up to date, prevents backlog of admin work, and allows you to respond quickly to client needs.
• Accounting integrations – Your invoicing doesn’t exist in isolation, it must tie into your books, payroll, tax management, job costing and overall financial picture. When your invoice software integrates with your accounting system (for example QuickBooks, Xero, etc.), you avoid duplicate data entry, reduce errors, sync invoices and payments automatically, and maintain a clean financial record. This makes tax time, auditing, and financial decision-making far easier.
• Custom branding – Though it might seem like a “nice to have,” branding on your invoices (company logo, consistent design, professional layout, clear payment terms) plays a role in how your clients perceive you. A polished, well-presented invoice builds trust, reduces confusion, and helps you appear more reliable and business-like, which can sometimes make a difference in how responsibly clients treat payments and how you win referrals.
• Reporting and analytics – Beyond simply sending invoices, you need insight into your business: Which projects are profitable? Which clients or types of jobs are causing delays in payment? How much is outstanding? How is your cash flow trending? The right software gives you dashboards and reports so you can see outstanding invoices, aging receivables, revenue by job/client, cost vs budget, and more. These insights inform better decisions, let you identify trouble spots early, and guide your pricing, bidding and service strategy.

Why DepositFix Is Considered the Best Invoice Software for Contractors

DepositFix stands out as one of the best invoicing solutions for contractors because it simplifies the entire payment process, from sending professional invoices to collecting payments seamlessly online. Built to integrate effortlessly with CRMs like Monday.com, it enables contractors to manage clients, projects, and payments all in one place. What truly makes DepositFix shine is its flexibility and automation, helping contractors save time, reduce manual work, and get paid faster without switching between tools.

Here’s why contractors choose DepositFix:

• Integrated Payments: Accept credit cards and ACH payments directly from your invoices, with instant sync to your CRM.
• Custom Branding: Personalize invoices with your logo, project details, and client-specific fields for a professional look.
• Automated Reminders: Send automatic payment reminders and confirmations to eliminate late payments and follow-ups.
• Subscription & Retainer Billing: Perfect for contractors with ongoing service agreements or milestone-based work.
• Real-Time Tracking: Monitor invoice status, pending payments, and transaction history from one intuitive dashboard.
• White-Label Option: Keep your business identity front and center with fully branded payment pages and communications.

With DepositFix, contractors don’t just send invoices, they manage client relationships, track progress, and accelerate cash flow through an integrated, branded, and automated payment experience.

Ready to see how DepositFix can streamline your invoicing and get you paid faster? Book a demo today and experience it in action!

Conclusion

Specialized invoicing tools, like DepositFix, Joist, Tradify, Knowify, and Xero, go beyond basic billing and support job-based invoicing, progress payments, time and expense tracking, and seamless accounting integration. They save time on administrative tasks, reduce errors, and provide clear visibility into your financials, empowering contractors to make smarter business decisions and focus on delivering quality work. 

Among these options, DepositFix stands out for its automation, CRM integration, and flexibility, making it the ideal choice for service-based contractors seeking a smooth, professional, and efficient invoicing workflow.

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