With the evolution of business models simplifying every process, you don’t need to do anything manually. You can achieve 100% accuracy and acquire personalized results no matter how big the size of your data is.
Recurring billing allows business owners to offer prices to their customers according to predetermined intervals. Ultimately, you will be able to charge your customers more smoothly and faster.
Introduction to Recurring Billing
Recurring billing is part of almost every business today. And, well, the recurring revenue business models, such as SaaS and more subscriptions, are more profitable than the conventional sales models. They cater to a continuous cash flow and long-term client relationships. In addition, they include more increased company valuations.
However, it isn’t as easy as it sounds. Such software comes with a set of challenging features too. They call for varying strategies, renewed KPIs, flexible sales plans, and more. As a whole, recurring revenue also influences customer billing, which can cause significant concerns for the accounts receivable managers.
Automating Recurring Billing with NetSuite
Without a shadow of a doubt, NetSuite has simplified the sales processes for a gazillion businesses over the globe. It brings the most valuable and practical breakthroughs for the sales processes and ensures accuracy with them. It serves real-time visibility into the financial activity of businesses by supporting various pricing models.
Suitebilling clarifies all your billing activities by providing the ease of flexible payment periods and customized amounts. You can categorize your payments as one-time charges or recurring amounts, be they in amounts or arrears.
Moreover, you can have the option of using a wide range of rating models. Businesses can create subscriptions that only record setup fees, variable consumption, and license counts in one step. The consolidation of setup and maintenance is made supremely easy with NetSuite Recurring Billing. Alongside this, rating models enhance your billing efficiency as well.
Quite predictably, you will find NetSuite customers extremely content with this tool. They understand and take advantage of the automated standard accounting tasks. There are still many ways to boost efficiency when the finance team operates on spreadsheets or some other application to work on recurring billing.
Not to mention, SuiteBilling saves much time for the billing teams. It involves automating additional processes and enhancing visibility by managing all the critical financial data in one place.
Managing Recurring Billing in NetSuite
NetSuite is the hub of all the handiest tools that help your business in the most versatile ways. It serves various tools that can provide a better direction to your operations. Also, it offers extra benefits in terms of combing all the data in a single place. That too, synched with the general ledger in real time.
Businesses using NetSuite can choose between three options to get their work done at a smooth pace. Here are the three possibilities NetSuite presents at their disposal.
Recurring Billing
If you are looking for a simple method to satisfy your diversified billing needs, the NetSuite Recurring Billing method is best for you. It offers a wide range of features to fulfill all your requirements in the most accurate and timely manner.
It starts when you create a sales order in the system, and the billing terms are decided. Once the total of the order is finalized and calculated over the predecided duration of the contract, your order will show a total. It will display a section showing the ‘billing schedule’, which contains all the invoices you need to prepare, and that too at particular dates and amounts.
For a clearer picture, the billing schedule is the master record of all the bills yet to come. And well, here’s where the tool will take charge of the primary process now. The system will handle all the billing till the contract term ends. You won’t need to invest additional money, time, or effort regularly, as the system will manage it all easily for you.
While some businesses have complex recurring/billing solutions, others prefer a simple one that involves taking care of just a few aspects, including renewal dates, billing dates, customer balances, payment information, and more essential data.
Contract Renewals
What comes next is Software Vertical Contract Renewals. It is a module that gives you flexibility in its supremely functional features related to contract upsells and downsells, changes in orders, and more impressive ones.
It is a tool that offers easy customization, automation, and an organized solution built to manage a massive number of transactions simultaneously. However, NetSuite has more for businesses whose billing structure does not fit well enough into the contract renewals module. It is sure to satisfy all your billing requirements adequately.
NetSuite Billing
Moving towards the latest module of NetSuite, SuiteBilling is something you must know about. It is a platform that provides the most comprehensive solution to meet your need to maintain a uniform recurring billing process. That, too, is in full compliance with revenue recognition requirements.
Suitebilling is a feature that accumulates multiple functions in its armory. It includes automated contract renewals, consolidated invoicing, flexible pricing, discount management, and automated rating processes supported by Financial Modules and NetSuite Advanced Revenue Management.
Moreover, it offers multiple features that benefit businesses in the most productive ways. From subscription management to usage tracking and billing metrics, SuiteBilling gives serves the best features under one umbrella. Not to forget, it gives you a clear view of the most significant figures, includes
- Total contract value
- ARR (Annual recurring revenue)
- Churn rate
- Annual contract value
- CAC payback period
- Active subscriptions value
- CAC (Customer acquisition costs)
- MRR (Monthly recurring revenue)
- CAC payback period
Summary
When it comes to billing is a significant part of every organization’s operations. And well, automation helps bring straightforwardness, ease, and accuracy to it. It is a tool that allows small to large businesses to manage their billing with NetSuite CPQ and is proving to be a game-changer for many. Indeed, it is a tool you can rely on for your business today, tomorrow, and for a long time to come.
