This popularity can be attributed to recurring revenue. Subscription businesses bill customers regularly every month or annually, which gives them some predictability in their revenue streams.
Subscription billing becomes more complicated as businesses grow. Consider all the subscription billing options, including upgrades, downgrades and pausing or activating subscriptions—these billing systems, whether legacy or home-grown, are not designed for this level of complexity.
Automated subscription billing systems that consider the different subscription pricing models can simplify complex billing processes without any effort.
- Automated Recurring Payments
It is essential to have a seamless billing process. Automatic recurring billing will save you thousands of hours and plug revenue leaks into your subscription workflows.
What happens if a customer changes their subscription during their billing cycle? Customers are only charged for the period that is still available. Prorations adjust your bill amount to reflect plan changes.
Coupons and Discounts
Automated recurring billing allows you to add discount coupons to your subscriptions without changing any workflows. The invoice will reflect the discount automatically.
Subscriptions offer users a lot more flexibility, such as choosing a billing date that best suits their financial cycles. In this case, calendar billing allows customers to modify their billing dates and automatically aligns all upcoming subscriptions to that new date.
As your business grows, pricing changes will be inevitable. You can keep older customers at their old prices and charge new fees.
- Automated Invoicing
Invoicing and billing go hand-in-hand. Billing software should automatically generate recurring invoices for you and sync your invoice information with Quickbooks or Xero. These are the features that subscription billing software should offer to make regular invoicing simple:
Invoices are a vital part of the billing process and can increase brand recall among your customers. Invoicing and automated billing allows you to customize your invoices with your brand identity. You can also add or remove fields from the customized invoice template according to your needs.
Customers might make multiple purchases in one period. Invoicing traditional software creates various invoices for each purchase, proving tedious for both the customer and your company.
It can be challenging to manage multiple product lines or products in your business. Each one will have its pricing plan, add-ons, recurring/nonrecurring charges, billing frequencies, and currencies, adding another level of complexity. You can manage all product lines and projects from one product catalogue.
A scalable product catalogue will save you time and effort in managing complex logs. You can launch new pricing plans or experiment with your product at the touch of a button and get your offering to market quicker.
Seamless checkout is crucial to provide a seamless checkout experience. If there is any friction, customers will abandon their carts. You should be able to offer a seamless and frictionless checkout experience with multiple payment gateways, payment options, and currencies.
Try out Acquisition Channels
Subscriber service providers may need to combine subscription fees with nonrecurring charges. It could be for ecommerce businesses. It could include add-ons, nonrecurring charges or ad-hoc fees for SaaS companies. All of these scenarios should be handled at the checkout by your subscription billing software.
- Efficient Collection
It is the ultimate goal of every business. Billing software should simplify collections by offering multiple payment options for users. It will reduce manual work and time spent chasing late payments.t
Flexible Payment Options
You can surprise your customers with multiple payment options. These include online payments, card payments and offline payments. Your billing software should support international transaction gateways like Stripe and Paypal if your business is globally based.
- Effortless Accounting
Accounting and bookkeeping can be a tedious monthly tasks for small business owners. They involve a million spreadsheets and thousands of hours of manual labour. It can lead to mistakes and discrepancies. ERP accounting software is essential as the business grows. SaaS accounting and subscription accounting have added complexity. You must be ready to deal with tax compliance and rules if your business is global.
- One Source of Truth
Your billing software must not only be able to bill and invoice but also seamlessly integrate with other solutions such as ERP Accounting & Finance and Customer Relationship Management (CRM).
Your CRM stores customer data, while invoices and payments are stored in accounting systems. Order fulfilment data can find on your ecommerce platform. Your billing system must integrate with the rest of the tech stack.
- Subscription Analytics
Each subscription business tracks critical metrics like monthly revenue (MRR), Churn and Customer acquisition cost (CAC), to name just a few. You can learn a lot from your subscription data to help you improve and align your growing business. Subscriber analytics provide you with all the insights you need in one dashboard that gives you a 360-degree view of your revenue.
Your subscription billing software should allow you to tap into this wealth of information. It will enable you to view your revenue from many perspectives, including product, sales, finance, retention. To learn more about subscription analytics, click here.
Billing software is an umbrella that covers subscription businesses. It offers multiple functions like subscription management and billing, invoicing, accounting, and payment processing. These functions are essential to ensure that the company runs smoothly and grows.
The correct billing software is an essential step in your growth. This comprehensive guide will assist you in finding a suitable billing launchpad.