5 Best Billing Systems for a SaaS Business

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When starting a SaaS business, one of the most important decisions you’ll make is which billing system to use. There are many different options out there, so it can be tough to decide which is the best for your business.

In this article, we’ll take a look at five of the most popular SaaS billing systems discuss the pros and cons of each one. By the end of this post, you should better understand which SaaS billing system is right for you.


1. Use Your SaaS Product


There’s no doubt that this is the easiest billing system to set up. After all, you already have a product that handles payments, so it only makes sense to use it for your SaaS business as well. Plus, this gives you full control over how billing works and allows you to customize the experience for your customers easily.

Below are the steps you need to take if you want to use your SaaS product for billing:

  • Set up payment methods. This is the simplest way to do billing, but it’s also the least flexible. It’s best for companies with small customers that do not want to worry about collecting payments through different channels (like Stripe or PayPal) at scale.
  • Set up billing. If you can handle it, this may be your best option because it provides the most control over how your customers are billed and what they’re charged for-including taxes and recurring payments.
  • Set up invoices: Invoicing software like Zoho Invoice help businesses manage their receipts, manage accounts payable, track payments, generate reports on financial performance and send invoices automatically through email or mail merge templates-all while keeping all customer data in one central place so you can easily stay organized with all your important information in one place (and not scattered across several spreadsheets).
  • Setup taxes: You’ll need someone who knows how tax laws work in each country where your business operates if you want to make sure that everything is done correctly from an accounting perspective, too-otherwise, things could get messy later down the road when trying figure out whether or not there were any errors made because someone did not know what they were doing when calculating deductions due back/forth between two different countries’ fiscal agencies.”

However, this system does have some downsides. For one thing, you’ll need to spend time and resources developing a billing module for your product. Additionally, keeping your product up-to-date with the latest features can be time-consuming and resource-intensive.

If you’re looking for an easy way to set up a billing system for your SaaS business, using your product is definitely the way to go. However, if you’re looking for a more robust solution, you may want to consider one of the other options on this list.


2. Use Your Own Custom Payment System


If you want to use your own payment system, then you need to create one. This can be done with the help of a developer who is familiar with building custom API’s and integrations. It’s also advisable that they have experience working with Magento and Shopify.

The key point here is that many components make up a complete billing system:

  • A payment gateway (Stripe, Authorize.net): This is what actually processes the credit card payments.
  • A payment processor (Braintree or PayPal): This is what actually handles the settlement of funds and makes sure that the money ends up in your account.
  • A shopping cart (Magento, Shopify, etc.): This is what allows your customers actually to purchase your products or services.
  • A gateway plugin for Magento or Shopify: This allows you to integrate your payment gateway with one of these popular e-commerce platforms.
  • An invoicing system: This is what generates the invoices that you’ll send to your customers each month.
  • A customer relationship management (CRM) system: This is what allows you to keep tabs on all of your customers and contacts, as well as manage their accounts.

Additionally, you’ll also want to consider the tax implications of using your product for billing purposes; you’ll likely need to work with an accountant or tax professional to make sure that everything is done correctly and according to the latest laws and regulations.


3. Use a Customizable Billing System


A customizable billing system allows you to use your own code and integrate it into your SaaS product. You have the flexibility to design your own billing system or customize an existing one.

You can build a fully customized billing system from scratch, or you can use an existing system that has been built for you. A customizable billing system will allow you to get up and running with the minimal development effort.

Though a customizable billing system may sound like the perfect solution for a SaaS business, there are a few potential downsides to consider.

First, a customized system can be more expensive to develop and maintain than a standard system.

Second, it may be more difficult to train staff on a custom system, and customers may also have difficulty understanding a complex billing structure.

Finally, a custom system may be less compatible with other software applications, making it more difficult to integrate with existing systems.

While a customizable billing system may have some advantages, businesses should weigh the pros and cons carefully before deciding if it is the right solution for them.


4. Use a Subscription Management Platform


A subscription management platform is a service that allows you to manage your billing, invoicing, and payment processing. It’s similar to a billing system but with one key difference: the ability to integrate with other systems.

There are many benefits of using a subscription management platform:

First, you don’t need to worry about all the technical details of integrating multiple applications together because it’s all taken care of for you by the service provider. All you have to do is provide your credentials, so they can access your data in real-time and send out invoices automatically at predetermined intervals (e.g., monthly).

Secondly, you’ll also be able to choose from different payment gateways (PayPal, Stripe billing system) or even set up your own–all without having to build anything yourself! This will save you time in the long run since there won’t be any issues with technology failing due to outdated components being used on older systems.

Instead, they’ll be replaced automatically as soon as new ones come out on top-of-the-line technology platforms like Zuora and Chargify that offer 24/7 support via phone or chat if something goes wrong during the setup process–and sometimes even before set up begins depending on how quickly someone answers their emails during business hours.

Nevertheless, a subscription management platform also has its own disadvantages as follows:

  • While it automates many of the technical aspects of running a billing system, it can be expensive and may not be necessary for smaller businesses that don’t have many customers and contacts.
  • You may not be able to fully customize the platform or integrate it with other applications, which could limit the functionality of your SaaS product and make it difficult to adapt as your business grows.


5. Use a Non-Customizable Billing System


One of the great things about this option is that it’s often more affordable than other billing systems, and can be a great option for new SaaS companies. Another benefit is that you don’t need to hire developers to customize your product.

If you’re a small business or your needs are pretty basic (e.g., subscription pricing only), then this type of system might be ideal for you. However, non-customizable options usually offer fewer features such as recurring billing and more specialized integrations with other services like accounting software or payroll providers. So if those are critical to your business model, keep looking!

Here are some examples of non-customizable billing systems:




If you’re looking for a billing system that’s easy to use and doesn’t require any customization, BillingPlatform is a great option. The software is designed to be user-friendly, so you can get started right away without worrying about learning any new programming languages or complicated software. And because its system is non-customizable, you’ll never have to worry about making changes to fit your specific business needs – it will always work the way you need it to.

Plus, its customer support team is always available to answer any questions you might have. So if you’re looking for a simple, straightforward billing system, BillingPlatform is a perfect choice.




Recurly is a great recurring billing software for companies that need to manage their finances and recurring revenue. It’s easy to use and provides many features, such as the ability to set up custom pricing tiers, offer discounts, and track your customer’s subscription data.




You can use Chargebee to create invoices, manage customer payments, and track your payment history. Chargebee also offers a built-in payment gateway so you can accept credit card payments. There’s no need to worry about PCI compliance or security risks.

And because Chargebee is a cloud-based system, you can access your account from anywhere in the world. Whether you’re a small business or a large enterprise, Chargebee can save you time and money.

On the flip side, non-customizable billing systems have disadvantages.

One is that they do not offer as many features as some of the other options on this list. For example, some do not allow you to set up custom pricing tiers or offer discounts. Hence, you may want to consider another option if these features are important to your business model.

Additionally, because the systems are non-customizable, you won’t be able to add new features or make changes to its software. So if your business needs are constantly evolving, you might find that non-customizable billing systems do not offer the flexibility you need to keep up with your changing needs. Hence, if your business needs are constantly changing or you need more features and flexibility in your SaaS billing software, you may want to consider another option.


Best Billing System Options


Whether you’re starting a new SaaS company or thinking about switching billing systems, here are some of the best options available today.

Payment gateways: Your gateway is how your customers pay for their subscriptions. It can be integrated with a payment provider like Stripe or PayPal, and will often facilitate invoicing, recurring payments and refunds as well. Some gateways also offer customer support features to help you manage customer relationships better.

SaaS payment gateways: These are specifically designed to support subscription businesses and come with an array of features including recurring billing (which automatically charges customers based on their subscription plan), invoicing functionality (so you don’t have to send out invoices each month manually), automatic invoice reminders when it’s time for a customer’s next payment date, debt collection tools if any payments go missing etc. The most popular SaaS payment gateways are Stripe and Recurly.

B2B billing: This is a type of billing system that targets a business-to-business (B2B) audience. It typically supports the billing needs of large enterprises, such as helping them manage their billing process and streamline the invoicing and payment processes. This type of billing software is typically customizable so that you can integrate your business systems and processes with it. The most popular B2B billing software options are SAP and Oracle.

Cloud-based billing: This type of billing system is hosted on the cloud, so you can access it from anywhere in the world with an internet connection. It’s a great option for businesses with employees working in different locations or for companies that need to quickly scale their billing process. The most popular cloud-based billing software options are Zuora, Chargebee and Recurly.

When choosing a billing system for your business, it’s important to consider the features you need and whether the system is customizable to meet your specific business requirements. It’s also important to think about whether you need a cloud-based solution or if a traditional, on-premises solution would be a better fit for your business.


Final Thoughts


Finally, you should also consider the price of the billing system and whether it is within your budget. While there are many great options available today, you’ll want to choose one that offers the best value for money.

For more tips on running your SaaS business successfully, don’t forget to check out our blog posts regularly.​

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Ken Moo