Today, analysts and experts tell that the recurring billing business model is not new. Many businesses have been using this model for centuries, but they do not know. When SaaS recurring billing systems were introduced in the market, businesses formally started to take this as a business model. Even the businesses that were successfully working on other business models shifted to this model by finding the recurring needs of their customers. However, the success of recurring billing software is because of the fact that it resolved various challenges that the SaaS business industry was facing.
Billing Mistakes without a Recurring Billing System
When the SaaS-specific recurring billing solutions were not introduced in the market, SaaS companies were using miscellaneous software for billing. When the software is not specific for the billing, the chances of mistakes are there. SaaS billing solutions have resolved many issues and challenges that SaaS companies used to face in the past. For instance, the chances of mistakes are high when repetitive tasks are to be performed. Especially, when you perform these tasks manually, the chances of mistakes are high. A human can make mistakes in repetitive tasks. However, a SaaS billing platform helps in avoiding all such mistakes.
Poor Customer Experience
Billing is a complete experience in itself for the customers. And you need to make sure that you offer the best customer experience when they are billed. For billing, an invoice is generated, and as a SaaS business, you need a proper template for the invoice. The placement of the logo, the amount that the customer is liable to pay, marketing content, and other things should be placed properly. When the invoice is not proper, the customer gets a poor experience. Or if there is any mistake in the invoice, it means you failed to offer the best customer experience. However, when SaaS businesses use automated billing solutions, there are set templates that they can use for invoice generation.
When there are mistakes in the billing, it is for sure that your payment will be late. When there is a mistake in the billing, customers contact the customer care centre immediately. Then, the customer care representatives need time to comprehend the issue. Then more time is needed to resolve the issue. Thereafter, the stage of the payment comes. You see, you are prolonging the process to get paid yourself by making mistakes in the SaaS billing. You can avoid any mistake in the billing by opting for a recurring billing business solution.
Insecurity of the Data
When you are not using the specific SaaS recurring billing platform, you risk the security of your customer datasets. The best SaaS recurring billing platforms are integrated with the payment gateways. The function of the payment gateway is to ensure data security. They encrypt the account information that the customers are required to share. This encryption makes the information safe. Also, many SaaS billing platforms are cloud-based and the cloud has its own security system. So, the SaaS businesses that used to face the issue of data breaches and poor security, now, cater to the huge customer base without any worries regarding data security.
Last but not the least, customer management is a challenge that SaaS companies face. For startups and small businesses, it is probably not an issue to manage their small customer base, but when the number of customers increases, management of these customers becomes a headache. However, recurring billing systems for small businesses should be opted for because small businesses one day need to compete with large enterprises which are not possible without SaaS billing solutions.
Customer management involves various activities regarding customers. And a SaaS billing software manages all these activities. If you are looking for the best recurring billing platform, then SubscriptionFlow is the one. It is a subscription and recurring billing management software that can help you with all these challenges that have been mentioned in this article. There are many other challenges that SaaS businesses have to face when they are not using a SaaS billing platform. However, billing software is more like a panacea to all billing-related worries.
For beginners or small businesses, you could try and meddle with Excel or Google Sheets. However, this data is very sensitive and vital, thus managing it with Excel, if you plan on growing and expanding, will become tedious and colossally tricky in the future. It would be best if you had the proper software, dedicated to business accounting. you can also try the matt oliver different bookkeeping method to further enhance your bookkeeping management.
There are free software units, but to accurately track transactions, monitor monthly or quarterly expenses and to this sort of stuff, you have to find a pay-to-use software. Free options usually limit the possibilities for the accountant and have fewer nuances that help make the most of accounting.
You need to try a demo or hire an accountant that is knowledgeable about a particular platform. Alternatively, you could delegate this task to a firm that has its own tools and an established system.