Billing software evaluation checklist for accounting firms
A structured checklist for evaluating time tracking and billing software — covering time capture, invoice workflows, realization tracking, and export options.
Contents
- 1.Time capture
- 2.Invoice generation
- 3.Reporting and visibility
- 4.Controls and compliance
- 5.Priority order
- 6.Disclosure
- 7.What is the single most important feature in billing software?
- 8.How important is payment processing integration?
- 9.Should we track non-billable time too?
- 10.What is the minimum reporting we need from billing software?
Time capture
- ✓Timer and manual entry options available
- ✓ Time entry accessible from within the task or engagement being worked on
- ✓ Mobile time capture works for staff away from their desk
- ✓ Rate configuration supports per-staff, per-client, and per-service rates
- ✓ Entries include fields for notes, descriptions, and billing codes
- ✓ Capturing time during interruptions is quick — under 10 seconds to switch
Invoice generation
- ✓Invoices pull from approved time entries without re-entry
- ✓ Invoice templates are customizable with your firm branding
- ✓ Line items can be edited, grouped, and annotated before sending
- ✓ Batch invoicing is available for monthly billing cycles
- ✓ Payment terms, due dates, and late fees are configurable
- ✓ Invoices can be sent via email or portal with online payment options
Reporting and visibility
- ✓Realization reporting shows worked vs billed vs collected amounts
- ✓ Write-off tracking with categorization
- ✓ Utilization reports by staff member and time period
- ✓ Aging reports for outstanding invoices
- ✓ Profitability analysis by client or engagement type
- ✓ Data exports in CSV or Excel for further analysis
Controls and compliance
- ✓Permissions for who can approve time entries and finalize invoices
- ✓ Audit trail for entry edits and invoice changes
- ✓ Bulk export capability for time, invoices, and payments
- ✓ Integration with accounting software for revenue recognition
- ✓ Support for multiple billing models (hourly, fixed, hybrid)
Priority order
If you have to choose, prioritize time capture ease over reporting sophistication. The best reports are useless if your team does not enter time consistently. Solve the input problem first.
Disclosure
Some links on this page may be referral links. If you choose a tool through one of these links, it may support this site at no extra cost to you. We only include tools we would evaluate ourselves.
What is the single most important feature in billing software?
+Speed of time capture. If capturing time takes more than a few seconds, staff will defer it, accuracy drops, and write-offs increase. Everything downstream — invoices, reports, realization — depends on consistent time entry.
How important is payment processing integration?
+Increasingly important. Firms that include a 'Pay Now' button on invoices collect faster and reduce accounts receivable. Processing fees (typically 2.5-3.5% for credit cards) are usually offset by faster collection. ACH payments with lower fees are a good alternative for larger invoices.
Should we track non-billable time too?
+Yes, but with less granularity. Tracking non-billable time helps you understand true capacity and identifies overhead that might be reducible. Use broad categories (admin, training, business development) rather than detailed entries.
What is the minimum reporting we need from billing software?
+Three reports: realization rate by client, aging report for outstanding invoices, and utilization by staff member. These three metrics cover the essential questions: are we billing what we earn, are clients paying on time, and is our team capacity allocated well?