Please note: To access Billing you must not be connected to Quickbooks Time under Settings > Connected Apps.
(Video) Set up Karbon Billing & Payments in 60 seconds
What is Billing
Karbon Billing allows you to simply invoice your clients for the billable time or fixed fee work you have completed in Karbon.
Following this, you can set up a payments account with Karbon Payments allowing your clients to pay these invoices to you via Karbon, streamlining the whole payment collection process.
The Billing feature is available to every Admin, to turn this feature on, head to your profile off of the main menu > scroll down to Permissions > click edit > scroll down to extras and click on Billing. Be sure to click save and it will then be enabled, you will notice a billing section will appear in the main menu.
Please keep in mind each Admin will need to turn this on for themselves to use the feature.
Turn on the ability to send and export invoices
To send and export invoices, you must have the permission turned on as well. To turn it on, open your Main Menu > click on your Profile (name) > click 'edit' on Permissions > Scroll down to Billing and turn on 'Send or Export Invoices and Billing Runs'.
Updating your Billing Details
Set up a Payments Account, Chart of Accounts, Tax Rates, Tax Identification Numbers, and Billing Templates. The information entered in these sections will then be applied to the Invoices created in Karbon.
To access your Accounts Billing Details, go into your Main Menu of Karbon and click on Settings > Billing.
1. Karbon Payments
If you are a Payments Admin, add a Payment Account if you would like to have your clients pay their invoices through Karbon. Karbon partners with Stripe Connect to ensure compliance and security of your client's payments.
You can choose to edit the currency first by clicking "Edit Settings". Click Add Payment which will take you to the Stripe Onboarding form to set up your Payment Account in Karbon. Please see our article on Karbon Payments for more information.
2. Chart of Accounts
The AR ledger records transactions against a set of different accounts - this includes accounts for recording Expenses, Payments and Sales Tax.
In order to align the accounts used in the Karbon AR ledger with the accounts in a firm's GL - a mapping needs to be created. Creating or updating an account mapping is done inside the Billing Settings (Settings > Billing).
Please keep in mind a Journal cannot be exported from the AR ledger until all of the accounts have been mapped!
If your account names or codes have changed, you can alter the account mapping by editing your Chart of Accounts as needed.
3. Accounting Period
Configure your Accounting Period to manage what gets included in your Journal exports.
To set up or update your Accounting period, navigate to your Billing Settings (Settings > Billing) and click 'Set Accounting Period'. Here it will allow you to set up your frequency of choice as well as of what date you'd like it to begin on.
You can further update your accounting periods by going into the Finance section under Billing on the Main Menu.
4. Tax Rates
Set up tax rates for your firm that will be used when preparing invoices in Karbon in the near future. To set a tax rate go into your Settings off of the main menu and select Billing. Based on your firm's country set in Account Settings, we have populated some core tax rates.
For the US and Canada, we have set Tax Exempt and No Tax Set core rates and for Australia, UK and New Zealand, GST and VAT rates have been set for you.
If you have clients that have different tax rate requirements, you can select a tax rate for those contacts by going to the Billing section on the Details tab. When invoices are created for that contact, the tax rate will be applied to all invoices by default.
5. Tax Identification Number
It is a requirement in many countries to display tax identification/registration numbers on invoices. Below the tax rate section in your Billing Settings, you can also set up tax identification numbers by clicking.
To set up a Tax Identification Number:
Click 'Add Tax Identification Number'
Enter the Identifier field (name displayed on Invoice )
Enter the Tax Identification Number
Select related Tax Rates
Select if the TIN will appear on the invoice. If 'don't show on invoices' is selected, when associated tax rates are applied, a TIN will not be applied to the invoice.
6. Billing Templates
You can view and customize your Invoice Templates for Ad-hoc Invoices and Recurring Billing Invoices, as well as your Email Template for sending the invoices under Billing Templates.
Ad-hoc Invoice Template
Customizing your Ad-hoc Invoice Template allows for the ability to remove the quantity, unit price, and amount column and the amount breakdown from the invoice. This can be set on the invoice template, which will then be applied to all new ad-hoc invoices and can also be overridden per invoice.
If you are not sending a tax invoice, you can change the field (below the 'to' field) that appears on the invoice from tax invoice to invoice. This can also be set on the invoice template or per invoice.
You are able to select a default payment term (Net 7, 14, 30, or 45) and add payment instructions. When invoices are created, the payment term and payment instructions will default to those set on the Invoice Template.
On the template, you can also see how the Invoice will be presented to clients including the logo and branding color chosen in Branding off of the Main Menu.
Recurring Invoice Template
Most of the same options for your Ad-hoc Invoice Template also are available for the Recurring Invoice Template. Additionally, you have a Payment Due option of due On Receipt, along with the other Net 7, 14, 30, or 45 options.
The Recurring Invoice Template removes the option for customizing between Individual/Summarized time entries, as it uses the Billing Plan description set in the Recurring Billing Plan details.
In customizing your invoice email template, you have the option to change the default wording that gets sent to your clients when sending an invoice. You can also add additional placeholders that become populated with unique information about your customers and the invoice. The available placeholders are listed below the Email Body field.
Once set, all future invoices sent to your client will use this email template.
Please keep in mind there is a 3,000-character limit.
Setting up Branding and Firm Details
Personalize your communication to ensure it reflects your brand. Navigate to your Settings and select Branding, add a logo and choose a branding color. .
The logo will be applied to all invoices and the branding color will be used on the total and due dollar amounts on the invoice.
Also make sure to update your Firm's address information to ensure that you can send out invoices. Navigate to your Settings and select Account Settings.
Excellent! Now that you have Billing set up, please proceed to our Using Billing help article which will cover everything regarding using Billing to raise Invoices and bill your clients with Karbon.