Accounting Software: What It Is and Why It Matters
Recurring billing and subscription management software has become a popular option for businesses. Companies are transitioning from a single purchase model to a subscription service because it is more efficient and productive.
With many programs to choose from, selecting the best one can feel overwhelming. Available information can be difficult to decipher.
The Top Recurring Billing and Subscription Management Software of 2022
The following sections will showcase the top picks for 2022 and provide a comprehensive overview of the selection process so you can choose the best software for your business needs.
Our Ranking Methodology: Understanding How This List Was Created
To curate, we:
- Sorted the top 50-100 programs based on Multiple Software Ranking services.
- Reviewed product write-ups for “Top Features” and “Key Metadata.”
- Watched product demonstrations.
- Evaluated product US/UI design and usability.
- Analyzed data from Google and Social Listening Tools.
- Determined set ranking score.
The Results of Our Analysis
Upon review, it is clear to see which products rank at the top of the list for best recurring billing and subscription management software in 2022. Over 100 programs were reviewed in our assessment and only the most superior programs were selected for sharing.
Business owners should feel confident selecting a product from our list knowing a stringent selection methodology was used. Essential program components were carefully analyzed to accurately project the best options for your needs. Our goal was to make the selection process quicker and more efficient for you and your team.
Identifying the best program will hinge largely on your specific needs and details. There is no “one-size-fits-all” approach. Additional research is always recommended.
If you still need some additional support after narrowing down the contenders, it may be wise to secure a free trial or product demo, if applicable. Testing a program to see how it supports your business goals and initiatives is the best way to make the most appropriate selection.
Demos and free product trials provide you an opportunity to better navigate and understand the ins and outs of the software before you commit to purchase. Seeing how the solution operates within the context of your business is a great way to support the decision-making process.
Now that we have provided a list of the best recurring billing and subscription management software for 2022, we’ll take a closer look at these tools so you can better understand the many positive implications for your company.
Best Recurring Billing and Subscription Management Software Overview
There are many factors to consider when selecting the best software for your company’s needs. In the following section, we’ll explore what a recurring billing and subscription management system is, how it works, prospective cost ranges, and what benefit it can provide your business both now and in the future.
What Is a Recurring Billing and Subscription Management System?
A recurring billing and subscription management product 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 Service 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 provides a glimpse at what this software can do for you and your customers.
Recurring Billing and Subscription Management Software Meaning
As you conduct further research, you may notice that some product designers use different terminology. Regardless of what variety of words is used, the terms mean the same thing.
Essentially, recurring billing and subscription management software help your company bill customers on a recurring basis and accurately manage customer subscriptions.
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.
Automated Invoicing
Billing and invoicing work in tandem. A good system should allow you to customize, consolidate, and advance your invoices in an organized fashion.
Product Catalog
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.
Easy Checkout
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.
Predictable Revenue
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.
Which Companies Should Buy Recurring Billing and Subscription Management 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
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 Businesses
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.
Large Corporations
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.
What Does Recurring Billing and Subscription Management Software 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.
Types of Recurring Billing and Subscription Management Software
There are a few types of recurring billing and subscription management software. Each variation comes with its own unique advantages and disadvantages. Before purchasing, it can be helpful to think about which type would suit your business needs best.
Out-of-the-Box Solutions
These types of products are new to the market and are a good choice for those looking to set up a recurring billing and subscription management service quickly and with little hassle.
API-Only Solutions
An API refers to a set of instructions that allows developers to integrate different applications, so they cohesively communicate with one another. An API-only solution can be a great option for companies looking to craft custom use cases.
SaaS Subscriptions-First Solutions
These products are some of the most mature and time-tested products on the market. Constructed for the digital offerings of SaaS companies, these systems can integrate many different payment options, which makes them an attractive solution for customers seeking multiple and varied ways to pay.
Custom-Built Solutions
Businesses can also elect to custom-build a solution that best suits their needs. While this can be advantageous from a design perspective, ample resources and time are needed for this type of construction.
Trends in Recurring Billing and Subscription Management Software
When it comes to recurring billing and subscription management software, there are a few key trends you’ll want to think about prior to making your selection.
Work-from-Home Capacity
One such trend is a work-from-home capacity. Considering the recent pandemic, many businesses shifted from brick and mortar to a work-from-home operation. Even though the pandemic is coming to an end, work-from-home opportunities are here to stay, and your software should accommodate this if it is the reality of your situation.
All Businesses Can Be Subscription Businesses
Nowadays, any business can be in the subscription business. This is another key trend. Many different and unique business models are utilizing this type of software to streamline operations, increase revenue streams, and provide enhanced support for clients.
Payment Flexibility
With substantial growth in the market and an increased demand for more flexible payment options, this is another recent trend to think about. Customers want new and different ways to pay. Choosing software that provides many payment options for your clients is critical.
Increased Innovation
As customer needs continue to expand, you can expect new and different offerings from many recurring billing and subscription management software companies. Buy now, pay later options, and crypto payments, for example, provide additional solutions for your clients.
Cybersecurity
Cybersecurity has always been a hot topic. As customer offerings continue to grow, enhanced security measures are being implemented. This is an important thing to consider when selecting the best recurring billing and subscription management software.
Which Is the Best Recurring Billing and Subscription Management Software?
There are many types of available products to choose from. Selecting the best one can seem difficult. The best way to approach this is to test as many of them as you can before purchase. The list above can be a great place to start should you need some inspiration.
How to Choose the Right Recurring Billing and Subscription Management Service
Choosing the best service does not have to be overwhelming. We are here to help make the process less stressful and more productive.
When selecting a system, it is important to consider your needs and the needs of your customers. Which software provides you the functions needed to efficiently collect revenue and keep your clients happy?
Many merchants offer free trials and product demos. We encourage you to take advantage of these so you can explore different product features. Among many other considerations, this is a great way to secure the software that is going to work best for you.
Summary
Recurring billing and subscription management software can help grow your business and make it run more smoothly. These systems provide ample benefits for your customers, as well. Satisfied clients mean more opportunities for new revenue streams and retention. On all fronts, it’s a wise investment for all your accounting needs.