FreshBooks handles:
Invoicing-both one-time and recurring
Cost estimating
Expense tracking
Time tracking
Online payment options for your clients via your merchant
Paper bills sent out with the click of a button
Reporting
It is very easy to set up and is very easy to use.
If you haven't tried it out, and are looking for a painless accounting solution, give it a shot! You can use it for up to 3 clients free and upgrade when you are ready to!
Here's a comment from one of our clients:
Holy crap that is much easier to pay that way! Very nice!
You can also follow them on Twitter! http://twitter.com/freshbooks