In this era of automation and digital workflow, automated billing solution is a necessity for your business growth.
The examples are live in front of you- look at any leading or growing business, billing automation is there.
Let’s give you a glimpse-
According to the latest report by Statista, some of the 100 largest companies in the world are-
Apple (United States)
Microsoft (United States)
Amazon (United States)
Alibaba Group (China) etc.
And these all have adopted automated billing systems decades ago.
Even look at Netflix, Xbox, LinkedIn, Hulu etc. and you won’t find any single leading online business without an automated billing system.
But, what’s the deal?
Understanding Billing Automation
Let’s start with an example. You are shopping on Amazon- once you add your products to cart there are several steps- choosing the preferred payment method or payment gateway, completing the transaction securely, getting the invoice with unique order id and other purchase details, and others. Now, this entire process involving multiple complex steps such as processing the payment related data securely, generating the invoice based on the purchase and other user details, taking necessary action for payment failure etc. is carried out by an automated billing system. This implies, each and every step is automated and streamlined which otherwise would be too tiresome and error-prone to accomplish manually.
Similarly, when you take a subscription of Netflix, you can choose your payment method, upgrade or downgrade your subscription plans etc. This is another use case of billing automation.
Simply put, billing automation is the process of executing and managing various billing cycles and billing related activities automatically.
Billing Automation for Business Growth
There are multiple ways billing automation can help business growth, like-
1. Experimenting with New Business and Pricing Models
Experimenting with various pricing or monetization models and business models is an integral part of scaling your business up. And an automated billing system can easily handle such changes in billing models and supports your new business model as well. For instance, if you have opened an OTT store and want to incorporate bundle services to reach out to a wider audience, you can easily integrate this new pricing model in your existing billing system.
2. Automating Revenue Recognition
Billing automation lets you create and manage rules to standardize revenue recognition which plays a vital role in your business growth. This also helps you manage multiple billing models at the same time such as purchase or usage based billing, subscription based billing, bundle services, pay per view, and others. Furthermore, it simplifies the audit trail, regulatory compliance, tax configuration, servicee fees etc. which are pivotal for scaling up or globalizing your business smoothly!
3. Reduced Repetitive Tasks
With a myriad of billing systems and tools available in the market, you don’t need to engage your time and money in the repetitive tasks associated with billing such as manually processing transactions, collecting related data, making invoices, keeping track of user billing cycles etc. This not only slows down your business growth but the time and money associated with such repetitive tasks keep getting multiplied when you upgrade your billing models or add new plans.
An automated billing software streamlines all these activities and drastically reduces the time and money spent on the manual repetitive tasks. This in turn, widens the growth scope for your business.
4. Fast & Smooth Cash Flow
Do you know, automated billing speeds up the billing process by more than 60%? The result is- fast and smooth flow of cash in your business. The more automated and advanced your billing system is, the faster and smoother will be the payment collection and getting paid. Without automation, your staff will spend hours in entering and checking figures, generating bills, keeping track of missed or delayed payments, and the list goes on. And even after all the investment behind additional personnel and resources, you can’t assure 0 errors! So, billing automation is the way out if you want to increase your ROI and grow your business. Furthermore, it ensures that you don’t miss any payments, and can automatically take action for delayed payments or other payment related issues.
A recent study by Fundbox revealed that nearly 70% of the companies receiving late payments, experience cash flow problems. And this often comes in the way of business growth.
5. Centralized Data
The billing of your business involves various components and unlimited data including the confidential and sensitive information related to your customers, their payment methods, and many more. You may end up needing multiple tools and applications to store, manage, and handle all such data securely and efficiently. This will not only cost you money but additional overhead. A comprehensive billing system can easily replace all such tools and lets you have a single place for managing all the centralized data in a hassle-free way! Such data includes customer lifetime value, recurring revenue, average revenue per customer etc. These are often the key metrics to assess your business growth and let you adopt strategies accordingly.
6. Business Insights
In order to grow your business, you must get insights of how your business is doing. And no doubt that your billing related activities are a reflection to that. Opting for a quality recurring billing system will give you the perks of getting analytics and insights on your monthly revenue, customer lifecycle values, subscription churn or acquisition, purchased subscription plans, customer billing cycles, and others. This will help you in planning for your business growth.
7. Multiple Options for Wider Audience
Targeting larger audiences is a preliminary step to expand your business. But is your billing system ready to support that? A sound automated billing system will offer you-
- Multiple payment gateways
- Multiple payment options
- Multi-language support
- Multi-currency support
which will aid in your business globalization.
The Impact of COVID-19
The outbreak of the pandemic has changed the business landscape since 2020, making the business leaders reassess and remodel their business plans, pricing systems, and strategic approaches. While most of the businesses have adopted automated tools more than ever, the competition to sustain and grow is getting fiercer which tends to remain in the post-pandemic years as well. Billing being one of the key components of a business is getting automated more than ever to cater to the business needs.
Introducing Muvi Billing
Muvi Billing, the monetization engine for websites and apps, provides automated solution for complex billing process, varied schedules, recurring revenue streams, and tax-compliant billing! Muvi Billing’s built-in infrastructure includes 40+ payment gateways, multi-language, multi-currency, 24x7x365 Support, analytics & insights, and many more!
Try Muvi Billing for free here!