As per rules, companies can invoice customers for products and services purchased regularly by using recurring billing software. There are many options in the market, so it becomes difficult to choose the right recurring billing solution for your needs.
What are the main factors to keep in mind while choosing recurring billing software?
Let’s start by identifying 12 key factors and asking you to ask before choosing a solution.
Key Factors for Choosing the Best Recurring Billing Software
Your business type, size, and usability criteria will determine which recurring billing software is best for you. Remember that what works for your partners, colleagues and competitors may not work for your business.
These are the key considerations to consider when selecting recurring billing software. Make sure you ask the right questions and get the answers from the vendors.
1. Pricing models
To rise above the competition, you need the ability to execute innovative pricing models quickly and accurately.
This will make it possible for your company to achieve its business goal.
Make sure you ask questions-
Does the recurring billing system support all pricing models? Including flat-rate pricing and tiered pricing as well as user/per-unit pricing, freemium, volume pricing, formula-based, time-based, demand-based, event-based pricing.
Other combinations that can be used for hybrid pricing may also be included. And, it is equally important to know whether a customer can cover multiple charges in one plan.
2. Billing cycles
Customers want and need the flexibility to make changes to their billing cycles easily.
Customers are locked into payment plans. What happens if customers wish to have multiple subscriptions that renew on different dates, but all of them continue on the same day? Customers with annual subscriptions can make mid-cycle changes to their quantity before the next renewal date. The recurring billing software can manage multiple terms and contracts within an account.
3. Invoice support
As one of the most crucial processes your business handles, the recurring billing software must support automated invoice processing. It would be best if you first asked the following questions:
- Is the software able to handle complex account hierarchies?
- Is it possible to create unlimited invoice templates by simply configuring and customizing the invoice template?
- Is it possible to invoice based on events?
- How are override rate calculations handled?
- Can the entire invoice process be automated to ensure accurate delivery and on-time delivery?
- What about delivery?
- Can invoices, credit memos, and supporting documentation be automated?
- Can it be delivered in different formats via a variety of channels?
4. Payment options
Customers love options, and the best recurring billing software provides your customers with what they want.
Customers can choose how they wish to pay – by using debit cards, credit cards, or checks. Is there a range of payment options available to the vendor?
5. Revenue recognition
You want and need to recognize revenue as soon as possible while remaining compliant with guidelines. It would be best if you first asked the following questions:
- Does the software combine revenue recognition and recurring billing?
- Can the software be used to comply with standards like IFRS 15 and ASC 606?
- Can you assign financial transactions in real-time and recognize revenue?
- Is the software able to track changes and audit them? Does the software allow for custom coding?
6. Dunning management
Automated collection and recovery of revenue is a way to reduce manual labor. Automating the entire process of dunning is necessary.
Also, make sure you have the following questions answered:
- Can messages be easily planned and tailored?
- Are there limits on the number of reminders that can be sent out?
- How do dunning messages get triggered?
7. Security and compliance
Since compliance requirements change frequently, your recurring billing software needs to be able to adapt quickly.
Security and compliance questions should include:
- Can the vendor guarantee that customer data is kept confidential and protected?
- Is their solution compliant with GDPR and CCPA?
- Are they compliant with the PCI security standard for credit cards payment processing and offer DKIM protocol to send emails from the platform?
- Finally, how can they ensure that customer data is only shared with those who really need it?
8. Open connectivity and integration
Recurring billing software should not be considered an isolated entity. Integration with other systems is essential to create a complete financial strategy.
There are two questions you need to ask:
- Are there robust application programming interfaces available for unlimited billing integration capabilities?
- How easy is it to integrate with third-party systems using enterprise connectors?
9. Multinational support
Going global shouldn’t be complex, and with the right recurring billing software, you can expand your business across borders with ease.
When evaluating recurring bill software, ask yourself if it allows for easy localization (languages, currencies, number fields, and tax providers, as well as payment providers). To meet regional requirements, How can the recurring billing software manage a complex portfolio?
10. Customer relationships
It’s not easy to attract new customers or build a loyal customer base. They expect personal service, prompt response, and 24/7 access to all the information they require.
Recurring billing software should be an asset to your customer relationships, not a hindrance. If you are looking at recurring billing software, ensure it offers a customer portal that allows customers to access their account information, invoices, make payments, or virtually serve themselves.
11. Business intelligence
Knowing your company’s financial health is key to making informed business decisions, so you need business metrics.
Be sure to ask before you partner with a recurring billing vendor
Do they offer in-depth reporting capabilities that can easily be cut and diced to provide you with the information you need?
Are they able to create customized reports as well as ready-to-use reports? Do they offer real-time dashboards?
12. Vendor assistance
Last but certainly not least, you need to evaluate the vendor and their overall solution. Questions you need to ask:
- Is it possible to try their recurring billing software before purchasing?
- How does the company handle transitioning from existing billing software to their recurring billing system?
- How long will the transition take? How do they offer ongoing support?
Get the Best Recurring Billing Software
You can’t let anything go when it comes to selecting recurring free billing software for pc. You could end up with a purchase that isn’t right for you or incurring additional expenses if you don’t do your research.
The best recurring billing software will streamline the entire process. It will help you reduce costs and accelerate revenue by allowing you to make more payments. It will help you reduce costs and accelerate revenue by allowing you to make more payments.