Billing is by no means a simple matter, especially when it comes to collecting and processing all the paperwork it involves. Managing all the payment collections, invoicing, and reminders manually
Automated billing can help
5 benefits of using automated billing software for your business
1. It helps keep the cash flowing
Cash flow problems are the main reason for small business failure, according to Business Insider. Billing automation software reduces the risk of developing these problems by streamlining the payment process.
Simply put, the solution automates all the invoicing and payment process. Therefore, it prevents you from losing revenue with late and error prone manual payment collection and invoicing.
Advanced billing software alerts the customer when their payment is late or has been declined. This is a tremendous benefit to your company and it’s a big time-saver for your accounting staff. As those emails go out, you will see your residuals decline. You will recover money that you might have otherwise missed.
Reminders about upcoming payments declined card notifications, card expiry dates warnings are all important facets of the payment collection and revenue recovery process that are difficult to process manually at scale.
2. It can categorize and recognize any type of revenue
One of the biggest advantages of using automated billing solutions is that they automate and simplify revenue recognition. You won’t have to work the complex formulas on your own and keep track of all earned revenue by hand. It is important to know that there is a difference between earned and unearned revenue.
Note that the advanced solutions available today can process revenue accurately. This includes recognizing what includes earned revenue and what is deferred revenue, which is essential for subscription businesses and rather complicated to keep track of. With this solution on hand, you won’t need to worry about missing something and getting into trouble down the line due to compliance issues.
3. Automated billing solutions save time
Billing is a time-consuming process, so automating it is beneficial by default because you get to free up all of that time. You can use it to work on improving your business and other important tasks.
It also needs to be noted that advanced billing solutions minimize the risk of errors. You should never forget that even a single error in your financial records might end up costing you a small fortune in fines. Invoicing errors can also lead to poor customer experience leading to lost customers.
4. Automated billing solutions add security
Top quality automated billing solutions available today have bank-grade encryption and a variety of built-in security features. In this day and age, when cybercrime costs businesses worldwide millions of dollars, electronic protection has become essential.
Automated billing software can also be used to help protect your business from fraud with PCI I level security.
5. Using automated billing solutions helps you be more transparent
Transparency is one of the leading qualities that consumers are looking for in a business today. When you use these solutions, you will be able to clearly show the customers the entire payment process and explain it step-by-step. Be sure to point out the security features of your chosen solution to make a better impression on your customers and prove to them that their payment and personal information are well protected.
Transparency and clarity are important for you as well because with your financial records neatly organized by the solution, you will be able to find any information fast. This will also help you save time when resolving any issues or performing regular audits.
All in all, an automated billing solution is a kind of software that any business needs today. Doing all the invoicing and payment processing by hand is too outdated an inefficient, as well as not very safe. This leads to a poor customer experience, bad collections, and business contraction.
However, remember that billing solutions available today vary greatly. You should compare them carefully to pick the one that will work most efficiently for your particular business.