Mercury

## Does Mercury offer built-in invoicing and bill pay features to replace standalone accounting software?

## Overview Mercury provides built-in invoicing and bill pay features within its banking platform, which are designed to complement rather than fully replace standalone accounting software. These tools, part of Mercury's 'Financial Workflows' and 'Accounting Automations', allow businesses to manage accounts receivable and accounts payable directly from their banking dashboard. While they can substitute for certain third-party services like dedicated bill pay platforms, they do not offer the comprehensive functionality of a full accounting system such as QuickBooks or Xero. The features are intended to streamline financial operations by integrating payment processing with banking records, thereby reducing manual data entry and simplifying reconciliation. The platform's capabilities are tiered, with basic functions available on the free plan and more advanced features reserved for paid subscribers. ## Key Features The Bill Pay feature supports a range of payment methods, including ACH transfers, domestic and international wire transfers, and paper checks. It includes a dedicated bill inbox where invoices can be sent via email or uploaded directly. The system utilizes AI-powered Optical Character Recognition (OCR) to automatically extract key details from invoices, such as vendor information, due dates, and amounts, and can detect duplicate bills to prevent erroneous payments. For enhanced control, businesses can configure multi-layered approval rules, enabling designated team members to approve payments through the Mercury mobile application or via Slack integrations. When processing payments, users can categorize bills with General Ledger (GL) codes, and this data syncs automatically with integrated accounting software, aiding in the reconciliation process. The Invoicing feature enables businesses to create and send invoices directly from the Mercury platform. It supports customer payments via credit card, Apple Pay, and Google Pay (processed through a Stripe integration), as well as wire transfers and ACH. For subscribers on the 'Plus' and 'Pro' plans, ACH debit is also available as a payment option. These paid plans also unlock the ability to customize invoices with company logos and brand colors, set up recurring invoices for regular billing cycles, and send one-click payment reminders. The platform provides real-time tracking of invoice statuses, showing when an invoice has been sent, viewed, and paid. For programmatic automation, an Invoicing API is available, with usage limits depending on the subscription tier. A key reconciliation aid is the system's ability to automatically match incoming payments to their corresponding open invoices. ## Technical Specifications Mercury's features are structured across several plan tiers. The free 'Core' plan offers unlimited basic invoicing and bill pay. The 'Plus' plan, at $35 per month, adds features like recurring invoices, custom branding, ACH debit capabilities (at $1 per transaction), and limited Invoicing API access. The 'Pro' plan offers unlimited API access and fee-free ACH debit. For credit card payments on invoices, standard Stripe processing fees (e.g., 2.9% + $0.30) apply. These integrated tools are designed to work seamlessly with major accounting software, pushing transaction and categorization data to platforms like QuickBooks Online, Xero, and NetSuite to automate bookkeeping tasks. ## How It Works ## Use Cases ## Limitations and Requirements Despite these robust features, Mercury's platform has concrete gaps that prevent it from being a full replacement for accounting software. It does not include a built-in General Ledger (GL), which is the core of any accounting system. It also lacks comprehensive Accounts Receivable (AR) and Accounts Payable (AP) aging reports, inventory management tools, integrated time tracking, and project management functionalities. While Mercury recently added the ability to file 1099-NEC and 1099-MISC forms on its 'Plus' plan, it does not provide the broad tax reporting capabilities of dedicated accounting platforms. Third-party reviews, such as those on G2 and from Merchant Maverick, validate this positioning, praising the platform's ease of use for payables and receivables while noting the absence of a 'full-blown accounting system'. ## Comparison to Alternatives ## Summary In conclusion, Mercury's built-in invoicing and bill pay features provide significant value by automating key financial workflows and integrating them directly with a business's primary bank account. They can effectively replace the need for separate subscriptions to services like Bill.com for many startups. However, they are not a substitute for a complete accounting system. Businesses will still require dedicated accounting software like QuickBooks, Xero, or NetSuite for essential functions such as maintaining a general ledger, generating comprehensive financial statements, managing inventory, and handling complex tax reporting.