Murphy & Landrigan moved clients to direct debit using Rechargly to automate software subscription on-charging, reduce reconciliation time and prevent revenue leakage. Here’s the step-by-step rollout framework other practices can follow.

Alex Millar

Co-founder & CEO

In this article

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Software disbursements

How to Move Clients Onto Direct Debit for Software Subscriptions

For many accounting firms, oncharging software subscriptions such as Xero begins as a convenience. It centralises control, simplifies procurement and allows clients to access discounts. Over time, however, the billing process often becomes more complex than anticipated. Standing orders are set up and forgotten. Subscription prices change. Payments arrive on inconsistent dates. Reconciliation becomes a monthly administrative cycle.

Murphy & Landrigan reached a point where subscription billing was consuming disproportionate time and attention. The firm was processing roughly a thousand subscription-related transactions each month and a meaningful share required manual correction or follow-up

The workload had grown to the extent that hiring a full-time accounts person to manage subscription billing was becoming a serious consideration

Rather than expand headcount, the firm restructured its approach and moved clients onto direct debit for software subscriptions, using Rechargly to automate and manage the oncharging process. Within two months, more than 95% of clients had adopted the new system

Not every firm will operate at the same scale, and not every practice will experience the same level of friction. However, the structure behind their rollout provides a framework that other accounting firms can follow and adapt.

1. Define The Operational Problem

Direct debit should be introduced as a solution to a specific operational issue, not simply as a modern alternative to bank transfers.

In Murphy & Landrigan’s case, subscription billing had become increasingly inefficient. The firm was managing high transaction volume, corrections were common, and subscription leakage was a risk where software costs were not perfectly matched to client billing. The administrative burden was approaching the cost of an additional hire

Even if your firm is smaller, the questions to ask internally are similar:

How much time is spent reconciling subscription payments each month?
Are payments predictable and consistent in timing?
Is every software cost reliably on-billed without manual review?
Does the current system scale as your client base grows?

Once you can articulate the problem clearly, direct debit becomes a structural improvement rather than a payment preference.

2. Align The Change With Client Benefit

One of the strongest aspects of Murphy & Landrigan’s rollout was that direct debit was clearly positioned as beneficial to clients. The firm passed on the full Xero subscription discount and other available discounts to clients who adopted the direct debit system.

Clients who remained on the previous arrangement could continue as before, but without the discount. As Patrick explained, “It automatically became cheaper for them to do this than not to do this”

This alignment reframed the entire discussion. Direct debit was presented as:

The simplest way to manage software subscriptions
The most cost-effective option available
A way to avoid updating standing orders when pricing changes

You do not need to replicate the exact discount structure. However, you do need a clear answer to one question: why is this better for the client? If that answer is vague, adoption will slow.

3. Lead The Transition at a Strategic Level

Murphy & Landrigan did not treat this as an administrative tweak. The transition was led at the director level because it fundamentally changed how subscription billing was managed.

This matters more than it may appear. When clients sense that a change is intentional and part of a broader refinement of practice operations, it is easier to accept, if it appears reactive or fragmented, it invites questions.

If you are introducing direct debit for software subscriptions, position it as part of improving how your firm manages recurring revenue and billing control, not merely adjusting payment mechanics.

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4. Prepare Your Team

Before contacting clients, Murphy & Landrigan briefed the entire team in a structured session. Likely client concerns were discussed, and staff questions were incorporated into the client-facing Q&A document. All supporting material was made accessible internally.

An internal preparation phase should include:

A walkthrough of the new billing and direct debit process
Clarification of what is changing and what is not
Discussion of common client concerns, particularly around security
Clear guidance on how to respond consistently

Additionally, you can also share Rechargly material:

What communication comes from Rechargly
How clients can set up their agreement
Common issues with clients are prompted to pay using their mobile number

When every client-facing team member can explain the change calmly and confidently, the rollout feels controlled rather than uncertain.

5. Communicate Early and Structure Information Clearly

Clients were informed one month before direct debit agreements were issued. The initial communication was concise and supported by a structured question-and-answer document designed to anticipate common concerns.

A Q&A format works particularly well because it allows clients to locate specific answers quickly. Instead of long narrative explanations, consider structuring your communication around practical questions such as:

What exactly is changing?
Why is this change being introduced?
How does the direct debit process work?
Does this affect my accounting fees?
What should I expect to receive by email?

Clarity reduces uncertainty. Structure reduces friction.

6. Use the Interim Period to Reinforce the Message

The month between announcement and implementation was used actively. Staff referenced the upcoming change during routine client conversations. Many clients had not opened the initial email, and those discussions provided an opportunity to explain the change in context.

This reinforcement phase is critical. Direct debit adoption is rarely achieved through a single email. It requires repetition across normal interactions. When the message is consistently referenced in meetings and calls, it gradually becomes expected rather than surprising.

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7. Separate Billing Changes From Payment Authorisation

Murphy & Landrigan first transitioned their subscription billing workflow into Rechargly before issuing direct debit agreements. This staging allowed internal processes to stabilise before clients were asked to authorise new payment arrangements.

If you are introducing a tool to manage subscription on-charging, ensure that billing is functioning cleanly before layering on direct debit authorisations. Staging change reduces complexity and makes the transition easier to manage.

7. Anticipate Frequently Asked Questions

When direct debit agreements were about to be sent, reminder communications explained what the email would look like and how to complete the process. Even so, the most common client question was whether the email was legitimate.

This reaction is entirely predictable. Any request involving payment authority will raise caution.

To manage this effectively:

Explain in advance who the email will come from
Describe what the email will look like
Encourage clients to contact the firm if they are uncertain

Here’s an example of Rechargly’s proposed communication document with a FAQ section.

8. Monitor the First Billing Cycle Closely

In the first month after implementation, some clients forgot to cancel existing standing orders, resulting in duplicate payments. Murphy & Landrigan identified these instances and refunded the funds promptly. While this created short-term administrative work, it reinforced trust in the new system.

Expect minor transitional issues. Monitor the first cycle carefully, resolve discrepancies quickly and communicate clearly. The first month sets the tone for long-term confidence.

What This Approach Achieved

Within two months, more than 95% of Murphy & Landrigan’s clients were using direct debit for software subscriptions. Reconciliation time has been reduced significantly. Subscription revenue became more predictable. Profitability improved because subscription leakage was reduced. As Patrick summarised, “It’s given us efficiency. It’s given us cash flow. And we’re more profitable because we don’t have that leakage of subscription that we are paying for that we haven’t on-billed”.

Your firm may operate at a different scale, but the structure behind the rollout remains widely applicable. Define the operational issue clearly. Align the change with client benefit. Lead it visibly. Prepare your team thoroughly. Communicate early and consistently. Stage the rollout thoughtfully. Monitor the first cycle closely.

When implemented in this way, moving clients onto direct debit for software subscriptions becomes a disciplined improvement in billing control rather than a disruptive change in how clients pay.