As a solo business owner, using QuickBooks Free can help streamline some of your bookkeeping tasks without incurring any additional business expense. The $0 version of the software only includes basic tools and puts limits on certain functions including its invoicing, however. QuickBooks Free users can send up to two invoices per month for free.

Depending on the type of business you have, this two-invoice limit could suffice. On the other hand, if you do the type of work that involves having to bill multiple clients on a regular basis, the two-invoice limit will leave you with a decision: either upgrade to a paid version of QuickBooks, or continue to send out your invoices manually. 

Here’s what you need to know about the QuickBooks Free two-invoice limit, and if that feature alone is enough reason to upgrade your account to a version of QuickBooks with more capabilities.  

What is QuickBooks Free?

QuickBooks Free is the zero-cost, entry-level version of the popular online accounting software that is aimed at solo business owners who are looking for basic bookkeeping tools. Among the features included in this plan level include the ability to track income and expenses, accept payments, and run three business reports (profit and loss, balance sheet, and an account quick report).

Users can also send up to two invoices per month, accept payments, track mileage on up to five trips per month, and capture two receipts per month.

What does the two-invoice limit mean, practically? 

QuickBooks Free allows users to send up to two invoices per month. This means that you can directly invoice two clients each month directly through the platform, and then track progress on those invoices, send out payment reminders, etc. 

If you try to send out a third invoice, however, the software will prompt you to upgrade to a paid version if you wish to continue. 

Types of business that might send out two or fewer invoices

Some types of self-employed people may get by with only having the ability to send out two or less invoices per month. Examples include:

• Rideshare or delivery drivers. These types of gig workers usually don’t have to send out invoices since the platforms they work with generate payment automatically. 
• Independent contractors. With some types of work, like marketing, public relations, or content creation, a solo business owner might only work with one or two clients at a time. In addition, some businesses that hire contractors may have their own preferred platforms and processes for payment in which the contractor may not have to generate their own invoice.
• Point-of-sale businesses. If you get paid on the spot by cash or card for services or merchandise sales rather than send out bills to be paid later, then you may not have the need for an invoicing tool.

What is the QuickBooks Invoice Generator?

When researching QuickBooks offerings, you may notice that there is a free Invoice Generator. This is a tool that anyone with a registered QuickBooks account can use to create an unlimited amount of invoices. However, this does not include the functionality of sending the invoices. 

The tool helps you to create a customized template, and also has some already created to give you a headstart. For example, there are templates for photographers, construction work, auto repair, and others. 

Once you choose your template, you can input the key details:

• Business name and contact information
• Invoice number 
• Date of completed service
• Description of services 
• Rate
• Taxes
• Total amount owed

After your invoice is completed, you can download the completed invoice into your format of choice (Microsoft Word, Microsoft Excel, Google Doc, Google Sheets or PDF) so you can send it manually to your client.

Your main options for sending invoices as a QuickBooks user

QuickBooks Free can be an excellent choice for getting started with bookkeeping software, and business owners who only work with one or two clients may determine they’re fine keeping this account level. But if you find you often need to send more invoices than the two-per-month cap will allow, you have essentially two main options to consider.

Option 1: Use QuickBooks Free and just send out your own invoices

If you don’t mind manually sending out your invoices and it’s not a headache to keep track of them, then the two-invoice limit won’t be a dealbreaker for you. You can still take advantage of QuickBooks Free’s other bookkeeping features and tools, but keep the invoicing part “in house.”

Option 2: Upgrade to QuickBooks Solopreneur Lite

If creating multiple invoices and wrangling payments is a pain point for you, then it could be worthwhile to consider upgrading your QuickBooks Free account to QuickBooks Solopreneur Lite. That account tier starts at $20 per month (with a current offer, as of this writing, for 50% off the first three months), and allows you to send and track unlimited invoices among other account features. 

At this account level, you will be able to send unlimited invoices online, accept payment online, track your invoice status and set up automated payment reminders. With everything centralized within your QuickBooks account, you won’t have to manually input your invoice data.

The Takeaway

QuickBooks Free is not meant to be a comprehensive accounting software. Instead, it offers a few basic features to help solo business owners simplify their expense and income tracking. One such feature is being able to send out up to two invoices per month. 

For businesses that don’t do a lot of invoicing, that can be a nice-to-have perk they may or may not need. However, if your type of business requires you to spend a lot of time manually sending out multiple invoices and tracking payments and you want to cut back on those tasks, then it could be worth upgrading to QuickBooks Solopreneur, which offers unlimited invoicing.

The decision of whether or not you can stay on the QuickBooks Free plan really comes down to the nature of your business and doing a cost/benefit analysis of upgrading. With invoicing specifically, think about your normal monthly volume and how important it is for you to be able to send and track invoices within your accounting software. 

For the occasional one-off invoice that may go over the monthly limit, it might not be worth an account upgrade unless you can maximize some of the other account level features. But if streamlining that aspect of your bookkeeping is a high priority, then it can make sense to move into a paid account tier.

Frequently asked questions

Can sending invoices with QuickBooks save you time?

If a digital tool can eliminate, reduce, or automate repetitive tasks that you do manually, such as sending invoices, then it can save significant time. How much time depends on your invoicing volume and how long it typically takes you to send, track and follow up on invoices.

Is QuickBooks Free good for invoicing?

QuickBooks Free is a helpful tool for creating invoices, but you can only use the software to send up to two invoices per month. If you send out multiple invoices per month, you might be better served by a paid version of QuickBooks, such as Solopreneur Lite.

What are the benefits of using QuickBooks for invoicing?

When you invoice clients with QuickBooks, you can include a “pay now” button to encourage them to pay you directly. Once you receive payment, it will be automatically reflected in your account so you don’t have to manually enter it. Other features (depending on your account level) may include setting up recurring invoices and automating payment reminders.

Can you run a business without invoicing?

With some types of solo businesses, you may never need to send invoices to customers. For example, if you sell goods or offer services that require upfront payment, you are paid on the spot and will not need to send an invoice.