3 min read

From Traditional Services Billing To A Proactive Process

Jan 26, 2021 2:30:00 PM

There is a good chance that billing is considered a routine job in your company, recurring after the end of each month. The process is reactive and consists of repetitive, execution-oriented tasks.

But what if you look at it differently? In this blog, we will explain what treasures you can find, if you transform your billing into a proactive process.

Financial plannig

Billing Efficiency Is Measured, But Are We Doing The Right Things?


The goal for billing is to have the correct invoice sent out in time. A successful billing cycle means quickness and avoiding errors and complaints. And this should be done efficiently.

Yet, many companies find themselves collecting and consolidating billing data manually at the end of each month. This consumes time and causes errors, customer complaints, and delayed payments that ultimately lead to customer dissatisfaction.

And further, many companies find that their customers are not satisfied with the information the invoice provides on, for example: What services are billed for? For what time period? Are the agreed price plans or rates used? How discounts are applied? What parts of the customer's organization have consumed these services? 

These billing problems also affect the reliability of financial planning. So how about proactive and transparent billing?

The Single Source Of Truth For The Company And The Customers

A modern billing solution complements ERP. It does for the recurring services business what the ERP has done for the product sale business.

Such a modern billing solution is the system of record in two ways:

  1. Throughout the lifecycle of each customer contract: Proactive billing digitally describes both the prevailing agreed  services and their pricing and billing, as well as the future, agreed or allowed changes.
  2. End-to-end from a billable item to contract/invoice: Transparent billing links each contract and invoice line item to the entitlement, service usage, and transactions and their prices.

Modern billing solution is proactive and transparent. It provides the single source of truth.

Cash Flow Projections Based On Billing Parameters

Proactive billing can offer transparency into the projected cash flow:

  1. In a smart billing system, if a billable item or event occurs, it can be displayed proactively as upcoming billing/revenue no matter when the actual billing.
  2. You will have accurate actual, deferred and upcoming billing data to steer on in your financial planning every day.
This data you can act on right now, not after the end of the month. How are we doing compared to last month? What do we need to do to achieve the target?

Proactive billing may be a very efficient tool to manage cash flow and be able to close a gap in a revenue target.

Compass In Uncertain Times, And Quick Insight Into The Impact Of Changes

A modern billing system can act as a compass for your financial decisions.

For example, recurring revenue is a good safeguard during uncertain times. During those times customers tend to drop the services they do not absolutely need. How to gain transparent data for monitoring and planning?

  1. Managing the entire contract portfolio effectively is key.
  2. For example: What are the recurring and one-off transactional revenues? What are the monthly recurring growth rates? Is there churn on some services, and do we need to change or tune the pricing model?

You will find quick insights from the data your billing system provides!

Beyond Traditional Billing: Good Sign'S AGILE Pricing, Billing, And Monetization

At Good Sign, we would love for you to see what treasures our agile pricing, billing, and monetization provides for! Good Sign Software allows for proactive, transparent billing as a vital part of the financial process.

Our flexible system can be integrated into your existing landscape to provide you the insights you need to enable optimal billing performance, better monetization insights, and ultimately happy customers paying earlier!

Take Us To The Test!

If you feel your billing needs will outgrow your current recurring revenue billing solution, or if you are just curious to learn how Good Sign helps do things differently, feel free to take us to the test!

We will gladly take on your challenge and prove to you it can be solved with lot's of benefits.

billing challenge draw

 

 

Good Sign

We help our customers solve existing pain points in monetizing service contracts and managing subscriptions and pay-per-use services. We help companies freely grow scalable services.

Feel free to contact us and let’s have a chat on how we can support your company.

Read more about financial planning:
https://www.goodsignsolutions.com/hs-search-results?term=financial+planning

 

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Petri Takala
Written by Petri Takala

Petri is the Vice President of Sales and Marketing. He also leads Good Sign’s solution evolution for selected industries. Petri is an experienced business leader with a strong background in business management systems within several industries.

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