A billing system for a business that sells on account is four records kept in step: the customer and their terms, the invoices issued, the payments and credits applied against them, and the balance that results. Everything else a billing management system is sold with, subscription plans, usage metering, tax engines for fifty states, is built for a different business. This page is about what a small business billing system actually has to do, why a cloud based billing system is the right shape for a team that shares the record, and how to tell b2b billing software built for the account from invoicing software built for one job.
The four records a billing management system keeps, and the two documents
Customer, invoice, payment, balance. From those the system produces the two documents the customer gets: the invoice at the sale and the statement of the period, carrying the opening balance, the period's invoices, the payments and credits and the closing balance due. A billing system that cannot print the statement from the record is an invoice printer, and the statement is what a customer on account pays from.
Why a cloud based billing system, and what it must not lose
Cloud billing software puts the record where the office, the owner and the bookkeeper all see the same balance, and where the customer can pay from a link. What it must not lose is the audit of who applied which payment to which invoice and when, because that history is what settles the dispute in March about January. Judge cloud based billing software by whether that history is kept and exportable, not by the dashboard.
Electronic billing software versus the account record
Electronic billing software that sends the invoice by email is the delivery layer. The billing management system underneath is the account. Buy the account first: if the payment can be applied against the named invoice and the statement writes itself, the delivery is easy to add; if not, no amount of delivery makes the balance true. The electronic billing guide on this site covers the delivery side.
B2b billing software for a small seller
Business customers pay on terms, from statements, often by remittance that names several invoices at once. B2b billing software has to apply one payment across several invoices, carry credits, and show the customer's account as they see it. E billing systems priced per invoice or per user are shaped for volume the small seller does not have; one price for the account is the shape that fits, and the paid record on this site is priced that way.
Questions people ask about billing system
What should e billing systems do for a small business?
Keep customers and terms, issue invoices, apply payments and credits to named invoices, carry the balance, and print the statement of the period. Export for the accountant. Everything else is optional.
What is the difference between a billing system and invoicing software?
Invoicing software prints the invoice for one job. A billing system keeps the account the invoices sit on, so the statement and the outstanding figure come from the record.
Is cloud based billing software necessary for a small seller?
For a team that shares the record and customers who pay from a link, yes. For one person issuing a few invoices a month, the free statement and tracker on this site do the arithmetic without one.
How is the paid record priced?
One price for the account rather than per invoice or per user. The proforma, statement and tracker stay free.