For many early stage companies, the primary focus over the first few years is to develop a great product and bring a new vision to the marketplace.
This growth through creativity phase is a natural stage for any new enterprise. It brings a tremendous excitement and innovation. When companies focus their development efforts on fresh ideas they typically produce a stronger product and an increased chance at a successful launch.
But success can often bring its own challenges. From the financial perspective, companies face billing concerns and the necessary mechanics to consistently and accurately invoice their customers, which can lead to a billing automation crises.
It is common that such financial factors are given little consideration in the early stages. Early clients are often charged manually or some of the collections are not followed up on. And frequently, these early adopters are providing important feedback on the product and their contribution to the financial bottom line is considered secondary.
As the customer base grows some emergency measures are put into place in a desperate attempt to provide a quick fix on collection all of the new offerings. This can take the form of manual spreadsheets or multiple accounting and invoicing platforms. The end result can be a complex structure of billing procedures, with knowledge concentrated in the hands of a few billing clerks, who desperately struggle every month to provide accurate financial results to the senior staff.
The Common Billing Approach
With luck and determination, a company will transcend the formative stages and begin to look forward to a steady growth phase. It is often at this time that internal billing procedures are first looked at from the perspective of their ability to scale to the desired levels required by the sales and marketing teams.
Decision makers can be shocked to discover that a fully functional in-house billing solution can take years to properly test and develop. In addition, their internal billing systems will also require permanent IT staff dedicated to managing and troubleshooting billing issues. Finding technical staff that also possess strong financial backgrounds can be difficult and expensive and there is always the high risk that internally coded systems will not meet the accounting and payment card industry (PCI) regulation demands of most modern industries.
Complete Guide to Subscription Billing.
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Billing Services Options
Considering the benefits of partnering with an automated billing service platform will come down to a cost-benefit analysis.
The company can decide to remain in the early creativity phase for an additional unknown period of time and attempt to build up in-house solutions to their billing scalability challenges. If so, they need to be realistic about the calculating both the development and staffing costs.
Or, the company can overcome their crisis of automation by partnering with an automated billing service platform. Through powerful integrations with billing providers like Fusebill, companies can continue to focus on their main priorities and let specialists handle the complexities of large-scale recurring billing. Integrations frequently take up only a fraction of development costs and all of the necessary accounting functions needed to manage customer lifecycles are already in place.
Product Architect, Fusebill
If your company is struggling through a crisis of automation, let us show you what our automated recurring billing platform can do to get you past the hurdles and support your company growth.
How to solve your billing automation problems?
Learn how you can spend 80% less time on billing with billing automation. Fusebill simplifies subscription and billing management by automating many manual accounting and financial processes and workflows.