13 May, 2022

How NetSuite Simplifies Recurring Billing

Businesses such as software as a service or subscription that generate recurring revenue. They offer more benefits than the usual transactional sales model. They incorporate steady cash flow, long-term relationships with customers, and greater company values.  

However, in addition to the benefits, there are distinct challenges also. These models need various marketing plans, modified sales strategies, and an entirely new set of Key Performance Indicators (KPIs). Repeated revenue also affects billing, causing trouble for accounting personnel.

Frequency, Complexity, Inefficiency 

Conventionally, a sale includes a single transaction, billed altogether or gradually as deliverables. But in a repeated revenue operation, a single sale reflects multiple transactions.  

One can bill these transactions at constantly recurring periods over a certain time span. You can bill buyers more often with this model. This happens monthly usually. This maximizes the whole billing volume, and results in extra work for accounts receivable (AR).    

The rating method of recurring revenue business also mixes up the billing procedures and revenue recognition. Certain strategies represent inconsistent price structures.  

Volume, tier or customer-centric rating are the basis of these strategies. You need to make an additional effort to provide customer pricing at the exact rate. Billing buyers for time or usage is difficult as both the quantity utilized, and the price paid can alter monthly. As billing requires to represent beginning and end dates, the marketing discounts and offers add more difficulties.      

Ineffective manual operations may be the greatest hindrance for managing recurring billing efficiently. Analyzing numerous customer accounts each month further, computing and entering the exact price is time-consuming and tedious. Companies receiving more customers must add more workers to manage the extra billing volume. This hiring raises functioning costs and will not be able to sustain in a competing labor market.    

Laborers must do much of their work with the help of spreadsheets. This is because the basic accounting system does not support tracing promotional periods. It neither supports the application of various pricing models, nor carries out other operations distinct from recurring billing. Business leaders do not get an exact and instantaneous view of financial operations if the data is in spreadsheets.  

The best technique to beat these challenges is to automate the recurring billing. Automation streamlines the billing operations, saving time and ensuring accuracy through removing manual tracing and rate calculations. An automated solution also stores customer data, rating, and other vital information together, enhancing data quality and financial visibility.

Automate Recurring Billing with NetSuite 

NetSuite makes billing processes simpler and more effective. It offers instantaneous visibility into billing and financial operations over areas like monthly revenue, complete contract value and customer attrition.  

SuiteBilling offers visibility into every billing process. Flexible choices allow businesses to bill subscriptions via one-time fees or recurring fees. You can do it in advance or in installments.  

With numerous pricing models, businesses can make subscriptions. They can capture arranging fees, license counts and flexible consumption in a single process. The blend of effortless subscription set up and safekeeping, and varying pricing models remarkably enhances billing operation efficiency.   

NetSuite customers already realized the productivity of automating standard accounting processes. The integration of SuiteBilling with NetSuite prevents time loss by automating extra processes. It increases transparency by handling important financial data in a single place.   

If you wish to know more about automated recurring billing with NetSuite, meet our experts at Jobin & Jismi for any NetSuite-related enquiries.