Do you still use manual accounting processes for your business, such as spreadsheets?
Then you know how error-prone and labor-intensive such a system is. These errors then have an impact on cash flow and business processes, and therefore on the profits of the business. Especially if you offer a subscription model, the complex pricing models can be a huge workload and slow down the growth of the business.
But that doesn't have to be the case. Automated billing eliminates the problems associated with manual billing.
Automated billing - what does that actually mean?
Automated billing is a process by which companies create, manage and process invoices and statements using automated systems and software solutions. This approach aims to minimize or eliminate manual tasks related to billing in order to save time, reduce errors and increase efficiency.
What advantages do automated invoice processing systems offer?
Automated invoice processing systems can be used in a variety of industries, from retail stores and service companies to corporations. They help to reduce the administrative burden and increase the accuracy and transparency of financial transactions.
Companies that successfully establish themselves on the market will sooner or later grow and offer new goods and services. And they will be confronted with a growing customer base, which will also significantly increase the number of internal processes.
Company growth therefore leads to an increased number of tasks that need to be managed. These include back-office tasks such as creating invoices, managing various accounts and projects, etc. The increase in administrative tasks in particular can lead to more errors and reduced productivity in day-to-day work. In this case, automating various processes can be the solution.
Switching to an automated billing tool, or automated billing software, offers numerous benefits for companies looking to optimize their billing processes and increase efficiency. Here are some of the key benefits:
- Continuous and predictable income
- Stronger customer relationships and increased customer loyalty
- Opportunities for upselling and cross-selling
Automated billing gives you more flexibility for your business. For example, you can easily change business processes and experiment with pricing and sales models, or react to a sudden increase in transaction volumes.
A company that can adapt quickly and effectively to changes in the market will assert itself in its sector and prevail over the competition.
3 good reasons for automated billing
1. improve the accuracy and efficiency of business processes with automated systems
The automated system makes manual data entry superfluous. This significantly reduces the error rate, such as incorrectly entered credit card information. Operating costs can also be reduced. This is because automated invoicing allows operating processes to be organized more efficiently.
With flexible billing software, not only can invoices be created and sent automatically, but credit cards and accounts can also be debited on schedule and refunds can be arranged in good time.
And if the billing process is optimized, you can concentrate on your company's core competencies.
Automated processes can save costs and time that can be invested in other projects. In this way, you can make your company even more efficient and achieve higher profits.
2. use automated billing to strengthen customer loyalty and prevent churn
In companies that are constantly growing, processing all the data is a huge effort and involves a lot of resources and finances. Among all the different tasks, it becomes extremely difficult, for example, to track down late invoices and remind customers of their late payments. Especially when it has to be done manually. But it is precisely this kind of attention to customers that is important to maintain customer loyalty.
Automated systems give you a much faster overview of your end customers' data and you can send payment reminders promptly and automatically. On the one hand, this saves valuable resources, money and time; on the other, it demonstrates the professionalism and reliability of your company to your customers.
If you can offer your customers a familiar and consistent billing routine, this increases trust in your company and helps you to build long-term customer relationships.
Example: Customers with a credit card:
The payment of a customer with a credit card on file has not been made. Not every error with credit cards is due to a lack of funds. It can also be because the credit card has expired or the limit for the card has been reached. Or the credit card has been frozen due to suspicious activity. Sometimes customers do not know that the credit card no longer works. In such cases, you could ask the customer. And with a small customer base, this may also be feasible. But with a larger customer base, this additional effort would be very expensive and time-consuming for a company.
An automated billing system can help in such a situation. Because it can:
- Customers are notified when their credit card expires
- other payment methods are offered if the credit card does not work
- invoices are sent again in the event of payment defaults
3. you can easily introduce new products and offers
When new products, special offers or discounts are introduced, a new pricing model is often introduced for customers. With the automated billing system, the systems can be adapted and the new ideas easily integrated. This makes it easier to market new services and products and reduces the time spent on back-end tasks.
This flexibility is indispensable, especially for companies that are growing and frequently change their product range.
Global growth should also be mapped using the right automated billing tool. After all, thanks to digital solutions, sales markets are also possible outside your own national borders. The billing system should therefore not only be able to handle larger transaction volumes, but also process different currencies, taxes and languages.
With the right automated billing system, you can achieve your business goals.
The nexnet solution
Our solution provides you with a smart, automated billing system. Not only can you create large databases of your customers, products and services, you can also easily change tariffs, set up credit notes and special discounts and set up other customer loyalty measures.
Our nexnet platform also gives you an overview of the terms and you can extend or shorten them as you wish. Just as your customer needs or the offer requires. The payment methods can also be adjusted in no time at all.
As we at nexnet have been active in the global billing sector for over 20 years, we are familiar with various taxes, currencies and languages, and you benefit from this knowledge when you use our cloud solution.
And even if you conduct your business globally, you can always rely on the German security standard for your sensitive data. Because our cloud runs on our own German server system. This means that we can offer you not only a high standard of security but also GDPR compliance.
Are you still unsure and don't know exactly whether our solution is right for you? Then arrange an appointment with our experts.
Need more features? We offer an enterprise solution for all individual requirements. Together with our experts, we can create a product that is specifically tailored to the needs of your business model.
In summary, this is what you should know about automated billing:
- Invoicing: Automated systems generate invoices based on predefined criteria. This can be, for example, the billing of products or services for customers.
- Schedule and deadlines: With the right digital invoicing software, payment deadlines and billing cycles can be monitored to ensure that invoices are created and sent on time.
- Customer communication: Automated billing systems can also send email notifications to customers to inform them of outstanding payments or invoice details.
- Incoming payments: Automated billing can track incoming payments and compare them with the invoices issued. Automated reminders can be generated in the event of delays or outstanding payments.
- Reporting and analysis: Invoice management often provides reporting and analysis capabilities that enable companies to gain insight into their financial performance and customer relationships.
- Reduction of errors: Automation minimizes human error as data does not have to be entered manually.
- Increased efficiency: Digital processing leads to more efficient billing, which saves time and resources and relieves employees of time-consuming, repetitive tasks.
