What Is Recurring Billing and Subscription Management Software?
Recurring billing and subscription management software is a digital ERP solution. These tools may seem foreign to those who are not familiar with this type of accounting tool. However, these tools are generally easy to understand, easy to use, and can be of great value-add for your business.
These systems help companies charge a recurring fee to customers on a routine basis for any services or subscriptions that are rendered. This contrasts with the traditional pay-in-full or single transaction model.
Historically, customers would pay a single fee upfront. With a recurring billing and subscription management tool, customers pay smaller amounts over a longer period for associated assistance. The software automates the process making it easy for both the merchant and the consumer.
This model provides advantages for both the customer and the merchant. On the merchant side, this software allows companies to easily track payments, generate customer invoices, pull reports, process, and deliver refunds, and more.
What Does a Recurring Billing and Subscription Software Do?
A recurring billing and subscription software helps to automate a rather complex process, so your accounting efforts are more streamlined, efficient, and productive.
This type of system can be of significant value to those working in the accounting department of an agency or organization as it helps to streamline the financial process. Accountants may feel relieved to use this type of technology in their daily practice. Your business may also benefit in the long run by using this sort of tool.
Software like this can help:
- Attract more customers by offering a more affordable pricing structure
- Offer a predictable revenue stream
- Increase the retention rates of existing customers
- Grow your earning potential with opportunities to cross-sell or upsell
- Reduce unnecessary or late payments
- Avoid redundant client data entry
This list is by no means exhaustive but it provides a glimpse at what this software can do for you and your customers.
How We Rank the Software
We use a comprehensive rating methodology to evaluate and rank recurring billing and subscription management software. Our rating takes into account factors such as functionality, ease of use, customer support, and value for money. Each software is given an individual score, called a Genius Score, which ranges from 0 to 100 to allow for accurate evaluation.
Main Features of a Recurring Billing and Subscription Management Software
The main features of a recurring billing and subscription management program may include:
- Automated recurring billing
- Automated invoicing
- Product catalog
- Easy checkout
Automated Recurring Billing
Automated recurring billing can help your business save money, time, and manpower. This feature should be able to handle prorations, coupons and discount codes, calendar billing, and grandfathering.
Billing and invoicing work in tandem. A good system should allow you to customize, consolidate, and advance your invoices in an organized fashion.
A product catalog can help if your business has multiple product lines. Since each of those lines is likely to have its own pricing structure, the billing process can get messy. However, a product catalog helps to keep everything organized in one place.
Good software solutions will make it easy for your customers to complete their transactions with multiple payment gateways and payment methods.
Benefits of Using Recurring Billing and Subscription Management Software
Recurring billing and subscription management software helps streamline your accounting responsibilities and further satisfy your customers.
There are many advantages to using recurring billing and subscription management software. While this list is not exhaustive, some of the key benefits include:
- Saves time and money
- Helps to cut down on late payments
- Fosters strong customer relationships and increases retention
- Improves security and PCI compliance
- Predictable revenue
Saves Time and Money
Time and money are two valuable commodities when it comes to running a successful business. Luckily, a recurring billing and subscription management software can help you save on both.
Since this type of system helps to automate the billing process, it reduces the amount of time a person would need to manage everything manually and helps to cut down administrative costs. These products track subscriptions, organize payment information, and monitor schedules so that clients can be sent invoices, emails, and notifications, as needed, with little to no manual input.
Helps to Cut Down on Late Payments
Given that these products automate the accounting process, they help cut down on late or missed payments. This can be critical for businesses that are growing. The more customers a business has, the more difficult this can be to track and manage. Since the system does this automatically, it can be easy to flag which customers need follow-up.
Builds Strong Relationships with Customers and Increases Retention
Recurring billing and subscription management software can also help companies foster stronger relationships with customers and increase retention rates. Often, these products will have built-in features that enable you to examine customer behavior so you can enhance your service offerings to provide for the best client experience possible.
Satisfied customers are more likely to share information about your business with others. Referrals are a great way to build your client base. Happy clients are also more likely to continue investing in your products and services for years to come.
Improves Security and PCI Compliance
Safety and security are a top concern. Protecting customer data and maintaining compliance is critical. Constructing your security measures and attaining a Payment Card Industry (PCI) certificate, however, can be time-consuming and expensive.
Many recurring billing and subscription management systems have built-in security features that protect customer payment data and personal information and make it easy to stay compliant.
It can be difficult to run a business without knowing when or if payments are going to come in. Projecting costs can be challenging if customers do not make payments on time, as intended, or contribute at all. Since these products help to automate the accounting process, tracking funds is easier than ever. It is simple to see what money is coming in and going out at any given point in time. Built-in reporting features also allow you to predict and plan for future trends.
Who Should Use This Software?
Recurring billing and subscription management software can be beneficial for all different types of companies. From small to large, these products provide a range of offerings that can be advantageous for both the company and the customer.
Small businesses can benefit from investing in recurring billing and subscription management software. A small business may have limited resources. Accurate accounting can be more challenging with less manpower. This type of software helps automate the process which makes it easier for small businesses to stay focused on growth.
Medium-sized businesses can also benefit from purchasing this type of software. Companies of this size typically have more resources and are seeking new, fresh ways to engage their customers and increase revenue streams.
Recurring billing and subscription management software can impact the way large organizations run their business. Often, these companies have multiple product lines. Accounting for all these services can be challenging. This type of software helps to streamline the process, so it is more efficient and productive.
How Much Does It Cost?
The cost of services can vary depending on the product and how it is used. Most products are priced on a “per month” basis. Other typical cost models may include pay per user or volume-based pricing. Prices can range from as low as five dollars to $45 or more per month.
If a product is a premium or enterprise product, the cost will be higher. This is because these types of products offer enhanced accounting features.
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