Billed vs ZipBooks

Billed vs ZipBooks is a comparison that surfaces when freelancers and small business owners want a tool that can handle invoicing without the cost or complexity of enterprise accounting software. Both platforms offer free plans, both handle professional invoicing, and both aim to simplify financial workflows for people who would rather focus on client work than bookkeeping. The difference is in what each tool builds around that invoicing core.

ZipBooks started as a free accounting and invoicing platform that uses intelligent algorithms to automatically categorize transactions and calculate a business health score. It layers basic double-entry bookkeeping behind a clean, modern interface — giving small businesses a way to manage their finances without paying for QuickBooks or Xero. Billed started from the other direction: project-based billing. It combines invoicing with time tracking, project management, and team collaboration in a single workspace designed for service businesses, freelancers, and agencies.

This guide covers everything you need to compare the two — pricing, features, user experience, support, and the specific scenarios where one tool is the clear winner over the other.

Company Background and Target Audience

ZipBooks launched as an open-source accounting platform with the goal of making business financial management accessible to anyone, regardless of budget. The platform earned attention for its free Starter plan, which includes unlimited invoicing, basic accounting, and a business intelligence score that rates your financial health on a scale from A to F. ZipBooks targets solopreneurs, freelancers, and very small businesses who need accounting features but cannot justify paying $20 or more per month for traditional accounting software.

Billed is an invoicing and project management platform built for service businesses — consultants, designers, developers, marketing agencies, and similar professionals who bill clients for delivered work. Rather than starting with an accounting ledger, Billed starts with the billing workflow and adds project management, time tracking, and team collaboration around it.

The philosophical difference matters: ZipBooks wants to be your accounting system that happens to send invoices. Billed wants to be your billing and project hub that happens to track finances. If you already have an accountant, Billed removes features you do not need and replaces them with project tools you do. If you want free bookkeeping software and invoicing is secondary, ZipBooks fills that gap.

Pricing Comparison

ZipBooks: Free Starter plan. Smarter plan from $15/month. Sophisticated plan from $35/month.

Billed: Free plan available. Pro plan from $9/month. Business plan from $24/month.

ZipBooks' free Starter plan includes unlimited invoicing, basic accounting, a single user, and the business health score — genuinely useful for solopreneurs testing the waters. The $15/month Smarter plan adds intelligent categorization, time tracking, recurring invoices, and additional reporting. The $35/month Sophisticated plan includes advanced accounting, team collaboration, and priority support.

Billed's free plan includes unlimited invoices, unlimited clients, and core invoicing features with no credit card required. The $9/month Pro plan adds time tracking, project management, expense tracking, team collaboration, and reporting. The $24/month Business plan adds multiple business support and priority support.

Cost Comparison by Scenario

Solo freelancer sending invoices: Both are free. The decision comes down to whether you want basic accounting (ZipBooks) or more invoicing features with no accounting overhead (Billed).

Freelancer needing time tracking and project management: ZipBooks Smarter at $15/month vs. Billed Pro at $9/month. Annual savings with Billed: $72. Billed also includes project management, which ZipBooks does not offer at any tier.

Small team of 5: ZipBooks Sophisticated at $35/month plus potential per-user fees vs. Billed Business at $24/month with all team members included. Annual savings with Billed: at least $132.

Agency with 10+ team members: Billed's flat pricing stays at $24/month regardless of team size. The cost gap widens as your team grows because Billed does not charge per user.

Feature-by-Feature Breakdown

Invoicing

Both ZipBooks and Billed handle the invoicing essentials — create professional invoices, customize templates with your branding, set payment terms, and send them directly to clients via email. Both support recurring invoices for retainer clients and subscription billing. Both allow you to duplicate previous invoices for repeat engagements and add line items with descriptions, quantities, rates, and taxes.

Where the experience diverges is in automation depth and workflow integration. Billed connects invoicing directly to tracked time and project expenses, so creating an invoice from a completed project takes a few clicks rather than manual data entry. ZipBooks connects invoicing to its accounting ledger, meaning every invoice you send automatically populates your books — useful if you are managing your own bookkeeping and want financial statements generated from the same data you use for billing.

For day-to-day invoice creation speed and accuracy in project-based billing, Billed's project-to-invoice pipeline reduces friction. For keeping your accounting books updated automatically as invoices are sent and paid, ZipBooks has the structural advantage.

Payments

Both platforms support online payments so clients can pay digitally the moment they receive an invoice. ZipBooks integrates with Square, PayPal, and Stripe for payment processing. Billed integrates directly with Stripe and PayPal, giving you access to Stripe's full payment infrastructure including credit cards, ACH transfers, and international payment methods.

Billed's direct Stripe integration means you use your own Stripe account with transparent Stripe pricing rather than routing payments through an intermediary. For businesses processing significant payment volume, the ability to negotiate rates directly with Stripe and maintain full visibility in the Stripe dashboard is a practical advantage.

Both platforms embed payment links in invoice emails so clients can pay in a few clicks without creating an account. Both support automatic payment reminders for overdue invoices.

Time Tracking

ZipBooks added time tracking to its Smarter plan ($15/month) — log hours against clients and add them to invoices. The feature is functional for straightforward hourly billing but operates independently from any project context.

Billed includes time tracking on its Pro plan ($9/month) as part of a broader project management system. Start a timer from any task within a project, and tracked hours carry full context — which client, which project, which deliverable. When it is time to bill, select the hours you want to invoice and convert them into line items with descriptions, hours, and rates already populated.

For teams managing multiple client projects, Billed's task-level time tracking provides significantly better accuracy and auditability.

Expense Management

Both platforms let you log business expenses, categorize them, and track spending. ZipBooks includes automatic transaction categorization powered by its intelligent algorithms — connect your bank account, and ZipBooks categorizes incoming transactions with increasing accuracy over time. This automation is one of ZipBooks' strongest differentiators and reduces the manual effort of bookkeeping substantially.

Billed offers expense tracking with manual entry, categorization, and receipt attachment. Expenses can be linked to specific projects and clients, giving you a clear picture of the true cost and profitability of each engagement. Billed does not offer automatic bank feed imports or AI-powered categorization — it is designed for tracking project-related expenses rather than managing your full chart of accounts.

If automated expense categorization from bank feeds is central to your workflow, ZipBooks has a clear edge. If you need expense breakdowns per client or project, Billed's project-linked approach provides more actionable visibility.

Project Management

ZipBooks does not include project management at any pricing tier. If you use ZipBooks and need to organize client work into projects with tasks, deadlines, and team assignments, you need a separate tool alongside your invoicing platform.

Billed includes project management natively on its Pro and Business plans. Create projects, break them into tasks, assign tasks to team members, set deadlines, and track progress — all in the same workspace where you track time and send invoices. When projects, time tracking, and invoicing live in the same tool, you see the complete financial picture per engagement without switching between apps.

Accounting

ZipBooks includes genuine accounting features: double-entry bookkeeping, a chart of accounts, bank reconciliation, and financial statements including profit and loss reports and balance sheets. The business health score — a proprietary algorithm that rates your financial standing from A to F — is unique in the free invoicing space.

Billed is not an accounting platform. It does not include double-entry bookkeeping, bank reconciliation, or formal financial statement generation. Many Billed users pair it with a lightweight accounting tool or an accountant for year-end financials.

If you need free bookkeeping software, ZipBooks delivers value that Billed does not attempt to match. If accounting is handled elsewhere, Billed avoids the complexity overhead.

Reporting and Analytics

ZipBooks generates accounting-oriented reports: profit and loss statements, balance sheets, and transaction summaries. The business intelligence score adds automated financial analysis that most free-tier competitors lack.

Billed focuses on billing and project analytics: revenue by client, outstanding invoice aging, project profitability, and time utilization. ZipBooks answers questions about your overall financial position. Billed answers questions about billing efficiency and project profitability.

Integrations

ZipBooks integrates with Square, PayPal, Stripe, Slack, Gusto, Google Contacts, and Zapier. The Zapier connection opens up thousands of additional workflow automations. Billed integrates with Stripe, PayPal, and key business tools with a deeper direct Stripe connection.

User Experience

ZipBooks has one of the cleanest interfaces in the free accounting space. The dashboard is uncluttered, the business health score provides a visual financial snapshot, and the intelligent transaction categorization reduces bookkeeping effort over time. First-time setup takes about 10 to 15 minutes, including connecting a bank account. However, ZipBooks' development pace has slowed noticeably — feature updates are infrequent, and some users report the platform feels less actively maintained than alternatives.

Billed offers a modern, actively developed interface organized around clients and projects. Setup takes under five minutes. The dashboard surfaces active projects, pending invoices, and recent time entries. Creating an invoice takes under two minutes. Billed releases updates regularly, and the support team is responsive across all plans including the free tier.

Customer Support

ZipBooks offers email support, with response times varying by plan tier. Free plan users may experience longer wait times, and support documentation has not been updated as frequently as competitors.

Billed provides email and live chat support across all plans, including the free tier. Most inquiries receive a response within a few hours during business days. For a free or $9/month tool, the support accessibility is notably generous compared to competitors that gate live chat behind premium plans.

Mobile Experience

ZipBooks provides mobile access, though the mobile apps have not received the same refinement as the desktop experience. Billed offers mobile access for invoicing, time tracking, and expense capture. Neither platform is best-in-class for mobile, but both cover the basics — creating invoices, logging time, and managing client information from a phone.

When to Choose ZipBooks

ZipBooks is the right choice if free accounting software is your primary requirement and invoicing is a secondary need. The free Starter plan includes genuine double-entry bookkeeping, automatic transaction categorization, and a business health score that no competitor in the free tier matches. Solopreneurs and very small businesses who handle their own bookkeeping without a separate accountant benefit from having accounting and invoicing unified in one zero-cost platform. If you specifically need bank reconciliation, a chart of accounts, and financial statements generated automatically from the same tool you use for billing, ZipBooks delivers that at a price point — free — that is difficult to argue with. The intelligent categorization algorithms reduce manual bookkeeping effort over time, and the clean interface keeps the experience approachable even for users without an accounting background.

When to Choose Billed

Billed is the smarter choice when invoicing, time tracking, and project management are your daily workflows and you do not need built-in accounting. The free plan covers unlimited invoices and unlimited clients with no credit card required, making it genuinely risk-free to start. The $9/month Pro plan adds full project management with task assignments and deadlines, integrated time tracking with one-click invoice conversion, expense management, and team collaboration — capabilities that cost $15 or more on ZipBooks and still lack the project management layer entirely. Teams benefit significantly: Billed charges no per-user fees, so a growing team pays the same flat rate. Businesses managing multiple brands or entities can do so from a single Billed account. If you already work with an accountant or use a dedicated bookkeeping tool for year-end reporting, Billed removes the accounting complexity and lets you focus entirely on billing clients and managing project work.

Migration: Switching from ZipBooks to Billed

Export your ZipBooks data — clients, invoices, and transaction records — as CSV files from your ZipBooks dashboard under the export or reports section. Import the CSV files into Billed through Settings > Import and map your data fields during the process to ensure client names, amounts, dates, and categories transfer correctly. The migration typically takes 30 to 60 minutes for businesses with fewer than 500 invoices. Recreate any outstanding invoices in Billed so payment tracking continues without gaps. If you have recurring invoices set up in ZipBooks, recreate those schedules in Billed before canceling your ZipBooks subscription. Running both tools in parallel for one billing cycle is recommended to confirm everything transferred smoothly.

Frequently Asked Questions

Is ZipBooks really free?

ZipBooks offers a free Starter plan that includes unlimited invoicing, basic accounting, a chart of accounts, and the business health score. There are limitations — single user only, no recurring invoices, limited reporting, and no time tracking on the free tier. Billed also offers a free plan with unlimited invoices and unlimited clients. Compare each plan's specific restrictions to determine which free tier gives you more room to work.

Which is better for freelancers, ZipBooks or Billed?

It depends on your workflow. ZipBooks suits freelancers who want free bookkeeping alongside invoicing and manage their own accounting without a separate accountant. Billed suits freelancers who bill by the hour, manage multiple client projects, and want time tracking and project management integrated with invoicing. If your daily work revolves around projects and billable hours, Billed's workflow is a better fit.

Can I migrate from ZipBooks to Billed?

Yes. Export your ZipBooks data as CSV files and import them into Billed through Settings > Import. Map your data fields during the import process to ensure everything transfers correctly. Most small businesses complete the migration in under an hour without losing client history or outstanding invoice data.

Is Billed or ZipBooks better for small teams?

Billed is more cost-effective for teams because it does not charge per user on any plan. A team of five on Billed Business pays $24/month total. ZipBooks may charge per additional user or restrict collaboration features to higher-tier plans. Billed also includes project management and task assignment, which ZipBooks does not offer at any pricing level.

Can Billed replace ZipBooks for accounting?

No. Billed focuses on invoicing, time tracking, expense management, and project management — not accounting. If you need ZipBooks' accounting features like double-entry bookkeeping, bank reconciliation, or financial statements, you will need Billed alongside a lightweight accounting tool. Many businesses use Billed for daily billing and a separate tool or accountant for year-end financial reporting.

Do ZipBooks and Billed have mobile apps?

Both platforms offer mobile access for invoicing and basic features on the go. Neither is considered best-in-class for mobile compared to larger competitors, but both cover the essential workflows — creating invoices, logging time, and managing client information from a phone.

Does ZipBooks offer project management?

No. ZipBooks does not include project management at any pricing tier. If you need to organize client work into projects with tasks, assignments, and deadlines, you need a separate tool alongside ZipBooks. Billed includes project management natively on its Pro and Business plans, eliminating the need for an additional subscription.

How does ZipBooks' business health score work?

ZipBooks uses proprietary algorithms to analyze your financial data and assign a letter grade from A to F based on metrics like invoice aging, revenue consistency, and spending patterns. The score provides a quick financial health snapshot without requiring you to read traditional financial statements. No other free invoicing tool offers a comparable feature.

What payment methods do clients have with each platform?

ZipBooks clients can pay via credit card through Square, Stripe, or PayPal. Billed clients can pay via credit card, ACH bank transfer, and other methods through Stripe, or through PayPal. Both platforms embed payment links in invoice emails so clients can pay in a few clicks.

Is ZipBooks still actively maintained?

ZipBooks continues to operate, but its development pace has slowed compared to its earlier years. Feature updates are less frequent, and some users have noted that the platform feels less actively maintained than competitors. If long-term platform viability and regular feature updates are important to your decision, evaluate the most recent ZipBooks changelog before committing.

Can I use both ZipBooks and Billed together?

Yes. Some businesses use ZipBooks for accounting and bookkeeping while using Billed for day-to-day invoicing, time tracking, and project management. This hybrid approach gives you free accounting from ZipBooks and better billing and project workflows from Billed without paying for features you do not use in either tool.

How much can I save switching from ZipBooks to Billed?

A freelancer on ZipBooks Smarter ($15/month) switching to Billed Pro ($9/month) saves $72/year while gaining project management features that ZipBooks does not offer. A small team on ZipBooks Sophisticated ($35/month) switching to Billed Business ($24/month) saves at least $132/year. Savings increase further if ZipBooks charges per additional user.

The Bottom Line

ZipBooks and Billed both offer free plans and both handle invoicing competently. The difference is in what surrounds the invoice. ZipBooks wraps invoicing in accounting — double-entry bookkeeping, transaction categorization, financial statements, and a business health score. Billed wraps invoicing in project management — time tracking, task assignment, team collaboration, and project-level profitability tracking.

Choose ZipBooks if free accounting is your priority and you manage your own books. Choose Billed if billing, time tracking, and project management are your daily workflows and accounting is handled elsewhere. If you are not sure which approach fits, try both free plans — ZipBooks' Starter and Billed's Free tier. Spend 30 minutes in each and the right tool will be obvious.

Try Billed free today and see if it fits your workflow.