The purpose of subscription billing is to allow business owners to streamline their accounts receivable process through a digital platform; however, subscription billing may be difficult if business owners don’t take the time to figure out the steps involved in tracking revenue, performing collections and generating reports. The information below provides details on how to overcome challenges businesses may encounter using subscription billing systems.
Payment reminder notices should be sent out to customers to alert them when their account will be deducted. Consider sending out the notices at least five to 10 days in advance so that the customers can ensure the money is available on the due date. The notification sent should contain information on the total amount due, as well as any other fees that were added during the month. If the transaction is in excess of the authorized amount, the notification will also serve as a reminder to the customer that there are also additional fees due.
Setup account email reminders so that customer payments are received on time through the recurring billing option. The account reminders will alleviate the challenges faced by business owners as a result of customers being charged without their knowledge. The immediate availability of cash is a hassle-free way for businesses to manage their accounts receivables. Subscription billing will provide business owners with a steady stream of readily available cash. The immediate access to cash flow also enables business owners to reinvest in their companies and better control their accounts payable.
Customers prefer flexible payments for their subscription billing accounts. The convenience of scheduling payments on an annual, monthly or weekly basis gives customers more control of when to make their payments. The flexible billing service option may increase efficiency for business owners since invoicing and sending out paper bills in not necessary. The flexibility of accepting payments can streamline the accounts receivable process for business owners. Customers have a variety of options available for subscription billing services, such as eCheck payments, credit card payments and debit card payments.
Subscription billing decreases overhead costs due to the nearly paperless process. Offering paperless billing options can save a business both time and money; however, it is essential that business owners have their customers opt-in for the paperless billing option. Providing customers with the option to select paperless billing lets them know up-front whether the bill will come through the postal service or to their email account. Customers will also have the option to access their accounts online to view bills when necessary, alleviating the unnecessary worry caused by losing or misplacing a paper bill.
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