So you’ve noticed your billing process is being hindered by inefficiencies. No, it’s not all in your head. There is a better way to be doing things.
Automated billing software all but eliminates the potential for human error, while speeding up processes and patching revenue leakage. Some may call it a business superpower.
Is your accounts receivable (AR) team constantly swamped with manual invoicing, billing, and revenue recognition tasks? Are you hemorrhaging money by paying them all overtime? Are they begging you to look into a tool that can help?
Don’t worry, this is a more common situation than you’d think. If this sounds like you, you’re in the right place. And we’re here to help.
I recently had room service delivered by a robot. And not just any old robot. This was no face-less assembly line machine. She–yes, she–had a name, was wearing a neck scarf, and presumably knew how to use an elevator.
While my run-in with artificial intelligence was both bemusing and slightly unnerving, it represents the innovative approaches that surround us. Automation is now a staple of organizations that provide services in the supply chain, health care, or air travel industries in many countries. Our global network relies on it. And so does the world of SaaS.
Losing customers (and revenue) to involuntary churn is a major bummer, and while crafting dunning communication isn't always fun, it can play a huge role in reducing your churn rate.
One of the most common causes of involuntary customer churn is failed payments. So, even though existing customers are happy with your service or product and otherwise would have continued their subscriptions, these customers churn because their payments don't go through. Sometimes they don't even realize it's happening.
Walking through the streets of ancient Mesopotamia, you would be justified in expecting few familiarities. And yet, if you were to stumble across an accounting document (you know how to read cuneiform, right?) you’d find the foundations of processes still used today.
When you implement automated billing software, you think you're just getting software that will automate your billing process, right?
Well, yes, but also…
The Accounting Standards Codification (ASC) 606 revenue recognition requirements made compliance significantly more complicated for subscription businesses when compared to the previous generally accepted accounting principles (GAAP). But don’t get discouraged—there are a few different ways you can simplify your subscription-based revenue recognition while complying with the ASC 606 guidelines.
Before we get into the simplification tips, however, let’s quickly review what ASC 606 actually is and how it affects revenue recognition models for SaaS subscription businesses.
