When we talk about billing, it’s mostly about billing processes. These processes mean complex and time-consuming processes for many companies.
And What Does Billing Mean for a Company?
The business process of invoicing is usually associated with the English term billing. Billing covers a wide range of different tasks, including creating and sending the invoice. For every company, whether start-up, small or medium-sized enterprise or large corporation, this topic is of great importance.
What Goes into Billing?
- Customer data collection
- Creation of the invoice
- receiving the money
- Booking to the appropriate account
In order to master this comprehensive process, all data should be recorded electronically from the start. With our subscription management , this process is effective and time-saving. You can use our cloud product online.
The 2 Most Important Points That Companies Need to Consider when Introducing Billing
1. A billing system must be straightforward.
This means that it must be easy to integrate into the company’s existing IT infrastructure. In addition, existing content management systems as well as price and product catalogs should be able to be connected without any problems.
2. Use a Centrally Controlled Management System.
To ensure that notifications and invoice documents can be sent without any problems, good billing software should include a centrally controlled document and communication management system.
The 4 Types of Billing
For companies from different industries, a look at the different types of billing helps to find the right billing model for the corporate strategy.
This form of billing is a combination of usage-based and fixed models. Hybrid models are an interesting solution for companies. Because they usually generate higher sales and better customer satisfaction than traditional subscriptions. Car sharing is an example of this. The customer pays a fixed monthly basic fee and an additional statement is created for each kilometer driven or accrued minute.
Usage Based Billing is particularly flexible.
Individual price models can be used here. And billing is based on customer usage.
Driving services such as Uber offer this model. Passengers are only billed for the one-off distance or duration of the journey. And they do not have to pay any further regular contributions.
The term “dynamic” indicates
that this type of billing or invoicing suits companies that offer products or services whose demand or willingness to pay can change on a daily basis.
This variant is used when prices are more expensive or cheaper depending on demand. So they can change regardless of the time of day.
With subscription billing , you can integrate billing processes very well into your company.
The advantage of this model is that you set the booking intervals individually. This means that you can determine whether bookings should be made daily, monthly or only annually.
Especially streaming services like Netflix or beauty box providers use this model.