Basic Thinking, 28.07.2021: Billing processes are often costly and time-consuming. Depending on the sector or service model, additional challenges can also arise. We explain what lies behind the term billing and how billing processes can be automated.
Billing is not just about creating and sending bills, but the whole billing and invoicing process. In accounting, this is understood to include the whole procedure from the creation of the invoice to the posting of the purchase order.
Billing is thus a holistic process: recording customer data, creation of invoices, receipt of the money, posting into the appropriate account, and much more. To ensure that this process runs smoothly, all of the data should be recorded electronically from the start – ideally in an automated way.
One of the most important points is that the billing system is uncomplicated and can be integrated into the company’s existing IT system. For example, companies should be able to connect a content management system to the existing price and product catalogue without any problems.
It also makes good sense to have central documentation- and communications management systems, which play a major role in the sending of notifications and billing documentation. The billing system has become one of the major components for in the billing process for companies.
With nexnet you will find all of the billing types you can choose for your company: hybrid, usage based, dynamic, and subscription billing.
- Hybrid billing can best be described as a combination of usage based and fixed models. From a business point of view, hybrid models often generate more sales and lead to a greater level of customer satisfaction than traditional or pure subscription models.
- For example, car sharing with a fixed monthly basic fee and additional billing according to kilometres/minutes driven.
- Usage based billing is characterized by its great flexibility. This enable customized pricing models to be used and billing to be carried out on the basis of what customers actually use.
- Usage based billing is typically employed in ride-hailing services such as Uber. Passengers are billed according to the distance or duration of their ride, but don’t pay any regular fees.
- Subscription billing is a simple way of integrating billing into your company. You gain all of the possibilities for any type of business model with recurring payments, while being able to set the intervals completely as you see fit – whether amounts are posted on a daily, weekly, monthly or daily basis is entirely up to you.
- Think of everyday subscriptions: from streaming services like Netflix, to beauty- or food boxes – any such services are examples of subscription billing.
Tip: Offer your customers various payment methods in order to raise the conversion rate. Whether payments are made by bank transfer, purchase on account, credit card payment or PayPal – nexnet supports over 25 payment service providers. This allows you to increase the likelihood that your customers will conclude the ordering process. nexnet’s billing platform also enables quick product- or price adjustments.
Billing is one of the most important components when it comes to optimizing processes in companies. nexnet is the right partner for you, answering all of your questions on the individual processes and introduction of a billing system. Find out more yourself and set up a professional billing in your company.