6 best practices for SaaS billing

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As more companies switch to a pay-per-use (SaaS) business model, automated billing software is becoming an important financial tool - especially for the growing number of subscription-based companies who manage recurring billing.  

SaaS subscription billing revolution

In the past, the approach to software delivery was through a one-time purchase.  Now, companies are adopting a pay-per-use pricing strategy for their software services.  Rather than selling a single unit (which was a package of floppy disks or CD-ROMs), they sell a software license on a subscription basis that is centrally hosted.  This license or subscription is based on recurring billing, which can certainly be great for the bottom line, but can also become quite complex as companies acquire more customers and serve up more offerings.  

This pricing shift opened a large window of opportunity, especially for companies with a scalable business model. Moreover, the rapid growth of companies shifting towards a subscription-based pricing model has created great demand for billing automation and management.

Today, there are solutions to automatically manage your subscription billing.

A process that helps reduce billing errors, accurately track and predict revenue and more!

Download the Complete Guide to Subscription Billing
Complete Guide to Subscription Billing.

This guide will walk through the wide range of features required to automate your recurring billing, subscription management, and payment processes.

Free Download


How does SaaS subscription billing automation help?

Subscription billing automation helps companies that are struggling to efficiently invoice customers, and manage the overall billing process manually. Manual billing costs companies thousands of dollars in revenue every month due to billing errors, inefficient resource allocation, and late collections.  Here are a few of the ways subscription billing automation can help.

Refer to this article to differentiate between rating and billing.

1. Efficient Time Management

Many people believe that time is the most valuable commodity. Manual billing requires hours of work and the task is complex and understandably subject to human error. But with subscription billing automation, you will see a return on your investment instantly from time savings alone, allowing redeployment of resources spent on billing to other strategic focus areas.

2. Prevent Revenue Leakage

Many companies using manual billing processes experience revenue leakage. They provide a service but don’t get compensated for it. Reasons for this range from not having a process to remind customers about upcoming payments, delayed payment requests, checks and reminders about expired credit cards, notifications of declined credit cards etc.
An efficient dunning management system can recover 1-4% of leaked revenue

From a SaaS perspective, it is important to recognize that services offered by your company can include ongoing technical support and continuous access to web interfaces, API integrations, 3rd party vendors and data reporting.  It's easy to see how without automation these services become impossible to track effectively.

3. Gain Insight

High-level reporting and quick insights are important for every executive. With a subscription management system, the company is able to review and compare financial performance (week to week, month to month, year to year), access monthly recurring revenue analyses and cash-flow trends, monitor customer activity, or track lost payments or deferred revenue. Aside from subscription metrics, there are other SaaS metrics you should understand as they might be helpful to automate your reporting.  A modern subscription billing and management platform helps you by tracking all the relevant data and lets you make better business decisions in real-time.

4. Churn Rate Reduction

It is a well-known fact that it costs more to acquire a new customer than retain a customer. Unlike manual billing methods, an automated billing platform has the ability to provide notifications to recover revenue and identify churn risk in a timely manner to avoid customer cancellation.

5. Quick Pricing Changes

Product and service pricing can change for a variety of reasons. Companies that are growing tend to modify their pricing strategies more frequently and the process of price changing can be long and frustrating, especially if you are dealing with multiple currencies. Automated billing platforms enable you to build a new pricing catalog in 1-2 minutes, without breaking the backs of your finance team.  Being nimble enough to adapt to market changes and customer preference changes makes for a strong competitive advantage.



Fusebill_Pricing_Subscription_Billling.pngSimple pricing, no surprises

Fusebill's Full Feature Set across ALL plans allows you to scale your business with complete confidence through every stage of growth.




6. Accurate Revenue Recognition

Another important benefit of employing an automated billing system is that it will automatically handle your revenue recognition.  Revenue recognition becomes much more complex and difficult to manage for a recurring billing business. Earned and deferred revenue are important measurements of business performance and therefore are critical metrics to report on accurately and in real-time. To learn more about revenue recognition, refer to the Revenue Recognition datasheet.


Subscription billing management and automation are essential capabilities for SaaS businesses. The right SaaS billing and subscription management platform will allow you to focus on growing your business and bottom line, rather than struggle with spreadsheets and manual processes. 


Fusebill simplifies subscription and billing management by automating many manual accounting and financial processes and workflows. Our cloud-based platform gives companies the freedom to grow their businesses, the flexibility to capitalize on new product opportunities, and the agility to maintain a competitive edge.

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Tags: SaaS Subscription Billing

Fusebill Inc.

Fusebill simplifies subscription and billing management by automating many manual accounting and financial processes and workflows. Our cloud-based platform gives companies the freedom to grow their businesses, the flexibility to capitalize on new product opportunities, and the agility to maintain a competitive edge.

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The Complete Guide To Subscription Billing