Most SMME owners have heard the term "subscription billing", but few make use of it or understand what advantages it can hold for their business. Let's begin with getting an exact idea of what recurring billing is and then move on to investigating how implementing it in your business can raise your cash-flow and save you money.
So, recurring billing, what is it? Subscription billing will charge an amount repeatedly to your credit card or bank account. The amount is usually the same and recurs on the same day each month. But subscription billing can also happen for varying amounts on any term or frequency on any date. Recurring billing is great for bills that never change in amount, for example: A monthly subscription to your favorite magazine.
Now that we know what recurring billing is, let's see how subscription billing can make your business better:
Keeping your cash-flow healthy
If like many other business owners and freelancers you think that recurring billing is solely for enterprise or corporate entities, you will be surprised to learn that subscription billing can work wonders for your SMME too. You can quite simply and very cost effectively implement subscription billing in your own small business.
Implementing recurring billing in your SMME means better cash-flow due to collection via debit order or automated monthly deduction. Most small businesses or freelancers allow their customers to pay via bank deposit or electronic funds transfer only. This means that your customers have the control over when they pay you. Sometimes resulting in haphazard small payments or even worse, late payments.
This means you are unsure of your cash-flow. This in turn leads to you not being able to plan ahead. Not being able to predict what your income will look like over the next few months will hinder you from being able to schedule your own debits and plan the growth of your business.
Don't forget to remember
Clients who neglect to pay their invoices on time can seriously affect your business. Waiting for late payment is very unproductive. Subscription billing eliminates the need to wait for late payment and because it happens automatically means the customer does not need to remember to actually pay you each month. It's a great way to collect hassle-free on time payments.
Reduce administration
Payment gateways that facilitate recurring payments usually offer automatic account reconciliation or provide bulk reconciliation files that allow simple and accurate resolution of client payments. This in turn translates to massive savings in time and money on your side. No need to employ a large amount of staff members to collect payment and effect reconciliation, save money. Your clients will also thank you for this because they save time. They don't have to worry about going through to the bank to make manual payment, recurring billing automatically takes care of their payment when it's required.
It all sounds excellent! How do you get going? We suggest you sign up for a payment facilitator that automates account recon and shop around for a payment gateway that enables your small business to charge recurrently.
So, recurring billing, what is it? Subscription billing will charge an amount repeatedly to your credit card or bank account. The amount is usually the same and recurs on the same day each month. But subscription billing can also happen for varying amounts on any term or frequency on any date. Recurring billing is great for bills that never change in amount, for example: A monthly subscription to your favorite magazine.
Now that we know what recurring billing is, let's see how subscription billing can make your business better:
Keeping your cash-flow healthy
If like many other business owners and freelancers you think that recurring billing is solely for enterprise or corporate entities, you will be surprised to learn that subscription billing can work wonders for your SMME too. You can quite simply and very cost effectively implement subscription billing in your own small business.
Implementing recurring billing in your SMME means better cash-flow due to collection via debit order or automated monthly deduction. Most small businesses or freelancers allow their customers to pay via bank deposit or electronic funds transfer only. This means that your customers have the control over when they pay you. Sometimes resulting in haphazard small payments or even worse, late payments.
This means you are unsure of your cash-flow. This in turn leads to you not being able to plan ahead. Not being able to predict what your income will look like over the next few months will hinder you from being able to schedule your own debits and plan the growth of your business.
Don't forget to remember
Clients who neglect to pay their invoices on time can seriously affect your business. Waiting for late payment is very unproductive. Subscription billing eliminates the need to wait for late payment and because it happens automatically means the customer does not need to remember to actually pay you each month. It's a great way to collect hassle-free on time payments.
Reduce administration
Payment gateways that facilitate recurring payments usually offer automatic account reconciliation or provide bulk reconciliation files that allow simple and accurate resolution of client payments. This in turn translates to massive savings in time and money on your side. No need to employ a large amount of staff members to collect payment and effect reconciliation, save money. Your clients will also thank you for this because they save time. They don't have to worry about going through to the bank to make manual payment, recurring billing automatically takes care of their payment when it's required.
It all sounds excellent! How do you get going? We suggest you sign up for a payment facilitator that automates account recon and shop around for a payment gateway that enables your small business to charge recurrently.
About the Author:
Susan Bapsnill is an expert at business billing. She suggests recurring billing to automate your billing procedures. Click here to try a recurring billing system for free.
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