Why B2B billing is hard

Billing in B2B companies, particularly those using usage-based pricing, is presented as a complex operational challenge involving customers, finance, sales, customer success, investors, and multiple software systems. Although businesses may begin with simple subscription plans, product evolution introduces increasingly difficult cases involving plan changes, credits, compensation, account consolidation, renegotiated contracts, multi-entity invoicing, and usage tracking. These needs also require reliable CRM, payment, ERP, revenue-recognition, reporting, and reconciliation integrations, while maintaining a consistent source of truth for billing data. The post argues that inflexible billing infrastructure can limit pricing experimentation, create manual work and support burdens, and divert engineering resources from product development, motivating Lago’s effort to build an open-source alternative to Stripe Billing.

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