Am I doing recurring billing or subscription billing?

Whether you’ve considered NetSuite SuiteBilling or not, subscription billing and recurring billing are two terms that are mutually utilized as they hold a set of similarities. However, both billing options work as a system of automatic payments, store customers’ billing information and keep track of credit card payments from the customer in a timely manner.

The one aspect that sets them apart is the pricing plans. Subscription businesses deliver with several pricing plans, providing customers with the flexibility to upgrade or downgrade their subscription services at any time which were opted originally as per their business requirements. On the flip side, it is not essential to have various pricing tiers in recurring billing because ultimately the billing mechanism stays the same.

The Recurring billing engine is embraced extensively because of its advantages to benefit both business owners and customers.

A recurring billing system fosters customer retention and meets customer demands

In the world of recurring billing systems, the recurrent billing process of customers is automated end to end. Once the customer provides the payment details, the invoice creation is complete, and the payment cycle will also be set up to bill the customer with charges specific to the service chosen. After this stage, no further manual stepping-in is required to relieve customers from payment reminder headaches.

This automated or the “set it and forget it” billing cycle is a timesaver for customers and business owners also reducing the possibilities of non-payments and delayed payments

Recurring billing systems correspond to businesses with recurring revenue like SaaS (Software as a Service) companies, magazines, and fitness memberships that follow a subscription billing model. Subscription businesses like these dominate the ones that follow a common transactional model with more benefits. They range from reliable cash flow, customer satisfaction and long-lasting customer relationships to high business valuations. However, this model comes with its own challenges since they involve varied marketing tactics, dynamic sales plans and an entire assortment of new KPIs.

Recurring revenue for a subscription business also means more workload for the inventory management and accounts receivable team and not just consistent and predictable cash flow

In a recurring billing system, a customer only has to sign up and provide their payment methods once for the respective pricing plan and they are all set. A single customer sale in this model defines multiple transactions charged periodically in a fixed timeframe or billing schedule. Whereas in the traditional billing model a single sale only consists of a single transaction which is either charged all at once or in increments with added constraints.

Therefore, the billing frequency will be higher in a recurring billing management model than in the traditional one.

The pricing strategy developed by such recurring revenue businesses is complex in nature for the billing processes and accurate revenue recognition. This pricing model features multifaceted rate structures which might be usage/volume-based, customer-specific offerings and pricing tiers. This automatically demands extra efforts to make sure the billing for consumers is correct. Time or Usage-based billing and quantity-based billing pose a challenge because the billing charges could vary month after month. Apart from this, promotional discounts and free trials bring more complexity, as this payment model must indicate both the start and end of the billing dates.

Experience Automated NetSuite Suitebilling system and there’s no going back

Managing recurring billing effectively might be hindered by inefficient manual processes. It is time-consuming and laborious to review hundreds of customer accounts monthly and calculate and enter the correct fees. Companies hire more staff as more customers join because the additional billing volume naturally requires more staff. In a competitive labour market, this additional staffing increases operating costs.

Basic accounting software doesn’t allow you to track promotional intervals, apply different pricing models, or perform related tasks that are unique to recurring billing. Imagine if one could do so much with spreadsheets. A business leader can’t get real-time insights, or an accurate picture of financial performance when data is kept in spreadsheets rather than an accounting system.

Automating recurring billing is the most effective way to overcome these obstacles. By eliminating manual tracking and calculation of rates, automation simplifies the billing process, saving time and ensuring accuracy. The consolidation of customer data, pricing, and other critical information into an automated billing solution improves the quality of data and financial transparency.

Achieve billing automation and efficient billing operations with SuiteBilling

NetSuite transforms billing operations into something much more straightforward, and efficient and allows it to provide real-time visibility into financial and billing activity. Throughout the expanse of areas such as total contract value, monthly recurring revenue and customer churn. SuiteBilling prepares you with consolidated and accurate invoices, and automated rating procedures to support variable pricing models. It also promotes transparency across all billing scenarios. NetSuite also accommodates businesses with flexible preferences on billing schedule frequency according to one-time fees or recurring charges, either in advance payment or in overdue debts. Variable pricing models can also incorporate subscriptions with license count limits, activation fees and multiple pricing all in one system.

Unifying this simple subscription launch, maintenance and flexible pricing models would remarkably boost the billing process productivity. NetSuite customers are aware of the benefits involved when accounting tasks are automated. There is no harm in keeping the bar high for more efficiency with the addition of SuiteBilling even though the finance team already uses spreadsheets or other applications for recurring billing. Since SuiteBilling consumes lesser time even with complex billing scenarios by automation and improved visibility by having all crucial financial data in a centralized location.

With SuiteBilling ensure that your company’s subscription terms are met in a seamless manner so that the customers have a smooth journey according to the agreed-upon contract terms.

Partner with ERP Buddies, a NetSuite Solution Provider

Companies have seen at least a 45% increase in their profit margin after incorporating SuiteBilling for their recurring billing management needs with ERP Buddies. They have surpassed their standard sales going beyond their stage of growth and following industry standards at the same time.

We can’t wait to get in touch with you! 

ERP Buddies is a North American Official Oracle NetSuite Solution Provider with diverse experience in implementing and Supporting NetSuite ERP for many industries.

With operations in the U.S, Canada, Europe, India, and the Philippines, our Expert Team is accessible globally and makes it their priority to create a smooth and positive experience for clients. Our experts assist clients throughout the entire implementation process, with on-site support and consultation, along with additional assistance in customizing your system to guarantee it meets your business needs.

Method

Take challenges head on & provide the best solutions by seeing issues through multiple view points.

Method

Take challenges head on & provide the best solutions by seeing issues through multiple view points.

Practice

A strict procedure that keeps the clients throughout the whole process.

Practice

A strict procedure that keeps the clients throughout the whole process.

Implementation Process

Understand the business pipeline & create a detailed plan to asses issues & collect feedback.

Implementation Process

Understand the business pipeline & create a detailed plan to asses issues & collect feedback.

Expertise

Team full of subject experts packed with years of experience in streamlining business processes.

Expertise

Team full of subject experts packed with years of experience in streamlining business processes.