Recurring billing software helps businesses to complete repetitive tasks such as billing and invoicing automatically. These systems come in handy for subscription businesses, such as SaaS providers. With recurring billing software, you do not have to bill your customers manually every month, so it improves the efficiency, accuracy, and speed of your invoicing system.
What Are the Benefits Of Recurring Billing Software?
1. Improves Your Business's Revenue Recovery
Your business may lose revenue due to errors or card expirations. Recurring billing software helps you recover your revenue in full and retain your customers thanks to automated email reminders and smart payment retries.
2. Improves Customer Retention
Customers experience the quality and timely services with inbuilt features, such as variable billing cycles, prorated billing, coupon management, and diverse payment methods.
3. Improves Billing Operations Efficiency
Automating your billing operations helps your business calculate taxes accurately and saves you time in handling repetitive tasks.
4. Minimizes Revenue Leakage
Recurring billing software manages automated invoicing. Your business will no longer experience late or missed payments. You can now receive payments 24/7 through various billing options and track any collections issues in real-time for effective follow-up.
How to Choose the Best Billing Software for Your Business
The following are six factors to consider to help your subscription business select the best recurring billing software.
1. The Payment Options Available
When choosing billing software, consider the payment options that are convenient for you. Does your business accept ACH payments, credit cards, debit cards, wire transfers, or PayPal? Choose software that allows multiple payment options.
2. Security and Compliance
Compliance systems such as PSD2 and SCA change every year. Good billing software should quickly adapt to these changes. Ensure the software you choose is SOC-1, PCI, and SOC-2 compliant.
3. High Volumes of Invoicing
Choose a billing software that can handle a large number of invoices for both online and offline payments. It should process the customized and consolidated invoices with detailed tax particulars and line items. Ensure your invoice can handle different functions such as creating credit notes, processing excess payments, removing payments, writing off invoices, processing refunds, and voiding invoices.
4. Dunning Management
Dunning management is the process of retrying payment failures and communicating with customers to achieve successful collections. At least 10% of recurring revenue payments fail due to payment failure, which can be caused by network downtime, credit card failure, or insufficient money to make payments. Choose billing software with effective dunning management capabilities that enable you to collect and recover lost revenue automatically.
5. Accounting and Taxes
Get software that will automatically calculate tax based on your country tax laws. Additionally, the billing software should integrate with your accounting systems to automatically manage and account for discounts, add-ons, credit notes, coupons, ad-hoc charges, and revenue recognition.
6. Reporting and Analytics
Since your business is collecting revenue, you should also receive thorough analytics and reporting. Therefore, you need software that can critically analyze your important business metrics, such as ARR, MRR, deferred revenue reports, and churn.
Conclusion
Good billing software will help you scale your business to higher revenue and greater customer retention. It gives your customers a safe and user-friendly billing platform. And it handles complex tax calculations, billing cycles, and prorations that are hard to work on manually. Choose software that can automate and manage the complex aspects of your billing process.
billing concept -DepositPhotos
