How can subscription billing software give your Saas business an accounting advantage?Featured • January 06, 2020
What does a business mean to a customer – A product or a service!
What does a business mean to the owner – A vision or a brand!
What does a business mean to an accountant – Numbers and Ledgers!
Before the rise of the digital era and computers, accountants all over the globe would help businesses sort their accounts. They use ledgers and sort them in the balance sheet and income statements.
The saving grace is the accounting rule that is almost the same for every business. Hence maintaining these standards can help a business try to move from local to national to international markets.
While earlier there weren’t that many transactions, now the modern accountant will be troubled handling millions of them. An error might take place. This error might be caught during an audit can bring shame to your business.
This is where there became a need for billing accounting software. This software can capture millions of transactions error-free and ensure the accounting books are clean.
Now there are 2 major ways a Saas business can try – Manual billing or subscription billing software. Let’s deep dive into both!
Manual accounting and billing:
Manual accounting and billing are the act of maintaining books of accounts in a ledger. All the entries will be entered manually by the business accountant. The books will be tallied and checked by the accountant.
Issues faced in manual accounting:
- Handling millions of transactions - Now a business that’s running in today’s market experiences millions of transactions. Accountants doing the manual work have the tedious never-ending task of capturing all these entries.
- Taking Shortcuts - More than once, they either might miss out on a few entries or end up using a short-cut method. This shortcut leads to entries that might end up with the business not being to back up their claim on how a specific amount was earned.
- Auditors will place you at risk - While internally your business might be okay with shortcuts and a few manual errors, an auditor will sniff out the truth and this might affect your business. With the IRS behind your back and your books unclean, it gives your business a bad image.
What is subscription billing software?
Subscription billing is considered the best solution for recurring payment and accounting. This software automates your billing duties and ensures your books stay clean.
Advantages of subscription billing software for accounting:
There are numerous advantages of subscription billing software when it comes to matters of recurring payment and accounting. Here are some listed advantages:
- Subscription billing software breaks down relevant data in such a manner that it meets GAAP compliance and accounting remains clean.
- With the help of this software, numbers are handled accurately and simultaneously fed into reports that you will need in month-end or quarterly meets. This reduces the time you would waste creating customized reports.
- The following compliance allows investors to easily review financial statements that can help them make an investment decision quickly.
- Finally, it’s not just the investors who benefit. You as a business benefit as you gain key insights into your accounting performance and you minimize the risk of error-filled financial reporting.
Importance of billing right for your Saas business:
Accounting compliance is a necessity for every Saas business today. The importance of billing is not just to maintain error-free books of accounts. There are a lot more things that a business can benefit from. Here are a few points on how billing right is important for your business:
- Accountants get a breather - As there is barely manual work, your accountants can oversee the software for entries and get a breather. The free time can be utilized on better tasks and improving your accounting books.
- Your business accounts get clean - Imagine catching an error or a mistake at the earliest of stages. Doing so can not only save your brand image but also help you save revenue that would be lost during damage control.
- Avoiding revenue leakage gets easier - Subscription billing software helps your business recover lost revenue and also avoids any leakage in revenue. Even if a customer cancels a subscription mid-way, the software helps you sort the refund so you don’t lose any money.
How can my subscription business maintain the right billing and accounting measures?
There are multiple options for businesses such as manual spreadsheets, basic software, and finally a subscription billing software. But the best subscription billing software that can sort all your billing and accounting issues is ChargeMonk.
What is ChargeMonk?
ChargeMonk is a subscription billing software that helps recurring business models to manage their accounts and billing minus any hassle.
How can ChargeMonk help your subscription business model?
Over the years, ChargeMonk has understood industry trends and all the daily problems that a subscription business can face. Keeping these in mind, we came up with the best subscription management software. This is an all-in-one solution for your subscription business that will help you save time, effort, and money!
If this is what you want for your secure subscription business, do connect with us today and get a FREE TRIAL! Click here for more details!