Any agency aiming for success needs reliable billing software. However, there’s more to billing software than meets the eye. Of course, it can send out invoices and let you watch the money roll in. But it also helps you juggle numbers, keep clients happy, and makes being an accountant easier.
Agency accountants have to juggle invoices, time sheets, and payment reminders. Historically, all this had to be done by hand, with books, ledgers, and a keen eye. While billing software doesn't replace the need for careful attention to detail, it does make everything more streamlined and less error-prone.
Every agency project is different, and time is always of the essence. For that reason, billing software that suits an agency must track the hours the team puts into projects, make detailed invoices that don't miss anything, and quickly handle payments.
While billing software is primarily about charging clients and getting paid, it includes many other related features. For example, it can analyze your financial data to give you insights that help you steer the agency to more profitable projects. It shows you where you're making great profits and where you might be lagging behind.
With the basics of billing software out of the way, let's dig into why it can make such a big difference for an agency. With the increase in workflow and ever-evolving digitization, this type of software has become a survival kit for agencies and similar businesses.
Here are the top 5 billing software that can do all this and more.
Bonsai is an all-in-one software for managing projects, tracking time, managing resources and bill clients.
Bonsai is one of the best billing software because it does so much with so little effort. It has a user-friendly interface and features that benefit most agencies. In some ways, it replaces a personal financial assistant.
It also comes with a private client portal where you can securely share files with the clients and collaborate. This makes it an excellent pick for fostering client trust and continuous support.
The software can create and maintain thorough task lists collaboratively and track billing times accurately. Therefore, it's a robust and powerful tool for agencies that demand precision and efficiency, which is to say – all of them.
Bonsai is fairly flexible regarding payment options. There are three billing plans, each billable either per month or annually. The first is the starter plan that costs $21 per month when billed annually. It's perfect for freelancers who are just starting out. It includes basic features like invoicing, time tracking, client CRM, and expense tracking.
A step above basic is the professional plan, costing $32 per month if billed annually. Growing businesses will get the most out of this option. It includes everything already in the starter plan, plus extra features like workflow automation, a branded client portal, and integrating with QuickBooks, Calendly, and Zapier.
Finally, there's the business plan, which is for $66 per month if billed annually. This plan is great for small businesses and agencies that have already found their footing. It includes all the professional features, as well as subcontractor management, hiring agreement templates, and unlimited subcontractors.
Try Bonsai for free now or book a demo to know more.
QuickBooks is another billing software with quite a reputation. There are several features that make it appealing, but also a few drawbacks.
Firstly, QuickBooks lets you make custom invoices and manage payments. It's easy and efficient, requiring no more than a few clicks once you get started.
You can also easily track and categorize business expenses and automate other bookkeeping tasks. Track business mileage, inventory, and project profitability to report on expenses or identify and manage tax deductions. QuickBooks lets you do all that and more. Plus, it works with multiple currencies.
QuickBooks is feature-rich, but that can be a double-edged sword in some cases. The wealth of features might overwhelm some beginners or those whose expectations and needs are simpler. Furthermore, the service is cloud-based, so it needs a stable internet connection to keep everything in order.
There are four primary pricing plans for QuickBooks: Simple Start, Essentials, Plus, and Advanced. Simple Start costs $15 per month (50% off for three months) and includes basic features like invoicing, expense tracking, and receipt capture. Essentials costs $30 per month (also with a 50% discount for the first three months) and adds billing management, time tracking, and multi-user support to the basic features. Plus, the plan costs $45 per month and includes everything in Essentials, plus inventory tracking and project profitability. Finally, advanced costs $100 per month but includes powerful reporting, custom access control, and automation for up to 25 users.
Stripe has changed the way agencies handle online transactions. Here’s a breakdown of some of its features.
Stripe's main feature is the embeddable checkout form that you can add to a website with just JavaScript. You can create and send invoices with built-in payment and charge your clients in over 135 currencies using various local payment methods. It's fast and secure, and lets you keep track of everything.
While Stripe has many advantages, it's not without its flaws. For one, it has policies in place regarding types of businesses, products, and industries that can or can't use it. This could be restrictive for some. Furthermore, its rate limits on the number of API requests may be somewhat limiting. For most APIs, Stripe allows for up to 100 reads per second and 100 writes per second. Finally, its structure might not be the most straightforward or cost-effective for B2B transactions.
Stripe's payment methods are fairly straightforward. There's the standard plan for 2.9% + 30¢ per successful charge for domestic cards. Then, there's the custom pricing plan for companies with large payments or unusual business models.
PayPal is a well-known name in invoicing and billing. Let's see why.
PayPal offers cash back from many brands, which makes them attractive for buyers and, by extension, sellers. This program also includes a MasterCard virtual card without an annual fee. It's a safe and fast platform that operates in most of the world and can handle many currencies. It also includes payment options like "Buy Now, Pay Later."
PayPal charges fees for some transactions and these fees can sometimes be higher than with other similar services. The service can also impose limitations on the account depending on certain activities which aren't always transparent. Unfortunately, disputes are said to be time-consuming and not always fruitful. Another possible limitation is the existence of additional fees for some international transactions.
PayPal doesn't have monthly fees and, therefore, no payment plans. Instead, it charges transaction fees, which depend on the type of transaction. It's convenient for agencies that like pay-per-transaction pricing.
Xero is another cloud-based accounting tool that is gaining traction with agencies. Let's see what it has to offer.
Its best feature is the all-in-one paperless record keeping. It's safe and secure, centralizing finances on the cloud. It automates reconciling bank transactions and sending invoice reminders.
Not just for record-keeping, Xero can also give you trend analysis and customizable reporting. It can even pull bills and receipts automatically with Hubdoc.
Some users who use Xero with large data files or high transaction volumes may encounter some slowdowns or lagginess at times. Furthermore, lower-tier plans may not cover everything a smaller agency or a freelancer is looking for. Lower plans also might not have bulk bank reconciliation.
There are three main pricing plans for Xero. The Starter plan costs $29 per month for basic features. The standard plan costs $46 per month, while the Premium plan costs $62.
Now you know what billing software does and what it does for you, the natural question to ask is, "How do you pick one?" To select the right software, you want it to fit your expectations and deliver quality results.
Here’s what you should look for:
Discover essential time tracking best practices for teams and individuals to boost productivity and efficiency. Learn how to organize tasks, prioritize effectively, and achieve goals on time.
Learn the story points in Agile quantify the effort to complete tasks, considering complexity and uncertainty. Explore the key estimation technique and best practices.
Discover how the Takt Time formula is a fundamental concept in lean manufacturing and process management.
