As a SaaS company, having the right billing and subscription management system in place is mission-critical. Your revenue operations hinge on the ability to accurately track and invoice customers, manage complex pricing models, automate revenue recognition, and deliver seamless customer experiences.
With so many SaaS billing software options on the market, how do you choose the right one for your business? In this comprehensive guide, we’ll explore the top players, key considerations, and expert tips to help you make an informed decision.
The Best SaaS Billing Software in 2024
While the SaaS billing software landscape is crowded, a few names consistently rise to the top as industry leaders. Let’s take a closer look at the “Big 4” and what sets each one apart.
1. Stripe Billing
Stripe needs no introduction as the juggernaut in the online payments space. Its billing solution is a go-to choice for many product-led growth (PLG) companies and those with straightforward B2C or month-to-month SaaS models. Developers rave about Stripe’s robust APIs, thorough documentation, and powerful integration capabilities.
However, Stripe’s rigidity and relatively basic UI can be a drawback for more complex billing needs. As your business scales and pricing structures become more intricate, you may outgrow Stripe’s limited specialized functionality.
2. Chargebee
Chargebee strikes a balance between Stripe’s robust architecture and more advanced billing capabilities. Like Stripe, it offers strong APIs and a better user experience through a modern, streamlined UI. Where Chargebee shines is in its ability to handle high data volumes while providing greater flexibility in billing workflows.
Chargebee’s simple invoicing structure caters well to companies with a traditional subscription and recurring payment model. Its pricing can get expensive as your needs escalate, and some users find the reporting features lacking. But for teams that need Stripe-like functionality with a more user-friendly interface, Chargebee could be the sweet spot.
3. Ordway
Relatively new to the SaaS billing scene, Ordway has quickly earned a reputation for tackling even the most complex billing challenges. Its APIs and ability to manage intricate upsells, contract changes, and pricing models are unmatched.
Ordway was built from the ground up with SaaS in mind, addressing pain points that traditional billing platforms often overlook. The potential downside? As a newer player, Ordway’s longevity and long-term support remain to be seen. But early adopters rave about finally finding a solution without “buyer’s remorse.”
4. Maxio (SaaSOptics and Chargify)
In 2022, long-standing SaaS billing vendors SaaSOptics and Chargify joined forces to become Maxio. This union aimed to combine the customization and flexibility of traditional SaaS billing tools with the advanced APIs and integration capabilities of more modern platforms.
Maxio excels at handling complex enterprise deals with multi-year contracts, pricing step-ups, and other nuances. It also offers more control over critical metrics like monthly recurring revenue (MRR) than many competitors. However, Maxio may be overkill for companies with simpler, lower-volume billing needs.
| Criteria | Stripe Billing | Chargebee | Ordway | Maxio (SaaSOptics and Chargify) |
|---|---|---|---|---|
| Customization and Flexibility | Limited customization for complex needs | Offers flexibility for various workflows | Highly adaptable to intricate requirements | Highly customizable for enterprise needs |
| SaaS Reporting and Analytics | Basic reporting features | Some users find reporting lacking | Deep insights into key metrics | Granular insights into financial metrics |
| Integration Capabilities | Powerful integration capabilities | Seamless integration options | Robust APIs for tech ecosystem efficiency | Integration with various systems |
| Pricing and Packaging | Competitive pricing for basic needs | Pricing can escalate with advanced features | Custom pricing for enterprise solutions | Additional costs for advanced modules |
Important Considerations When Choosing SaaS Billing Software
While the “Big 4” dominate the SaaS billing software market, no one-size-fits-all solution exists. Your specific business requirements should guide your decision. Here are four key considerations:
- Customization and Flexibility
As your SaaS business grows, so will the complexity of your billing processes. From tiered pricing and per-seat models to usage-based structures and multi-currency offerings, you’ll need a system that can adapt and automate even your most intricate workflows. Evaluate each platform’s customization capabilities and flexibility to accommodate your evolving needs. - SaaS Reporting and Analytics
Understanding your MRR is critical, but most billing software falls short in providing granular, trustworthy insights into this key metric. As you evaluate options, dig deep into their reporting and analytics features. Can they seamlessly connect billing data to your finance and accounting processes? How easily can you extract actionable intelligence from the numbers? - Integration Capabilities
In today’s SaaS landscape, it’s common to employ a hybrid approach—one system for self-serve products, another for enterprise invoicing. If you rely on a complex stack of disparate tools, prioritize vendors with robust APIs and seamless integration options. This will streamline communication across your tech ecosystem and drive operational efficiency. - Pricing and Packaging
Top SaaS billing platforms often offer an array of add-on modules to support niche requirements, from payment processing to revenue recognition. Before committing, clearly understand what’s included in the base package versus what will incur additional costs. The right balance of functionality and value will vary for each business.
While no billing system is perfect, choosing the right one can mean the difference between a smooth operation and a constant struggle against inadequate or misaligned functionality.
The Importance of Billing Data Integration
Even the most sophisticated SaaS billing software has limitations when it comes to making sense of your billing data from an MRR perspective. Billing systems are inherently rigid, struggling to provide the context and flexibility needed for robust financial planning and analysis (FP&A) workflows.
This is where third-party billing data integration solutions like Mosaic come into play. By taking a standardized approach to mapping your transaction-level billing data to company-wide metric definitions (including intricate MRR calculations), Mosaic fills critical knowledge gaps.
More than just another subscription management tool, Mosaic consolidates your billing data with other essential sources—CRM, ERP, HRIS, data warehouses—into a centralized hub. This holistic view provides the context finance teams need to understand and leverage billing data for strategic planning, analysis, and decision-making.
As Joel Blachman, finance and business operations lead at Amper, explains, “I realized that tools like Chargebee and SaaSOptics were only part of the picture…Mosaic integrates your billing data with your other critical source systems to provide a holistic view of financial and operational data.”
Frequently Asked Questions
Why do SaaS companies need specialized billing software?
The recurring revenue model and complex subscription requirements of SaaS businesses make specialized billing platforms a necessity. Features like recurring billing, usage-based pricing, automated discounts and upsells, and revenue recognition quickly become unmanageable without purpose-built software.
What’s the difference between billing and subscription management software?
While closely related, billing software and subscription management platforms serve distinct purposes. Billing software handles invoicing, payments, and revenue operations. Subscription management tools focus on the customer lifecycle—signups, cancellations, account changes, and overall subscriber data.
Can’t I just use QuickBooks or a generic invoicing tool?
Generic accounting software and invoicing tools lack the specialized functionality required for efficient SaaS billing and revenue operations. Their limited capabilities around recurring payments, complex pricing models, and revenue recognition make them inadequate for scalable SaaS businesses.
How much does SaaS billing software typically cost?
Pricing varies widely based on the software’s capabilities, your business needs, and revenue scale. Basic plans can start around $50-$100 per month, while robust enterprise solutions may run $1,000+ per month. Many vendors also offer usage-based and revenue-share pricing models.
Conclusion
In the fast-paced world of SaaS, having the right billing and subscription management software is table stakes. From streamlining revenue operations to delivering exceptional customer experiences, your billing platform is mission-critical.
While the “Big 4” SaaS billing vendors—Stripe, Chargebee, Ordway, and Maxio—lead the pack, your specific business requirements should drive your selection process. Prioritize customization, robust reporting, integration capabilities, and holistic pricing that aligns with your needs.
Don’t stop at implementing a world-class billing system, though. Ensure you have a strategy for making sense of your billing data within the broader context of your financial and operational metrics. Solutions like Mosaic can bridge this gap, providing finance teams with the holistic intelligence needed for strategic planning and data-driven decision-making.
In the rapidly evolving SaaS landscape, the right billing software partnership can be the catalyst for sustainable growth and long-term success. Choose wisely, integrate deeply, and let your billing processes become a competitive advantage.