BillingPlatform Blog
7 FOLLOWERS
BillingPlatform provides the power needed to automate enterprise-grade quote-to-cash processes. From subscriptions to sophisticated usage-based pricing models and everything in between, we meet the challenge of modern monetization. Read the latest blogs and thought-leadership articles available in the billing world here. Start learning more today!
BillingPlatform Blog
1M ago
Monthly recurring revenue (MRR) is the money you make every month from customers purchasing your products or services. This is the amount you can rely on receiving regularly. It is a key metric for businesses to track their financial performance. MRR helps businesses understand their revenue stream and plan for future growth. Subscription-based software-as-a-service (SaaS) companies commonly use it.
So why are monthly recurring revenue (MRR) metrics important to your business? First, let’s discuss how to calculate the different types of MRR. Then we can understand how these metrics help y ..read more
BillingPlatform Blog
2M ago
Given the more than 1,000 accounting and finance terms, it’s easy to understand why there may be some discrepancies. Although many of the terms are self-explanatory, others such as bookings vs billings vs revenue are frequently misunderstood and used interchangeably. Let’s demystify the terms, discuss their importance for B2B software-as-a-service (SaaS) organizations, establish when and how they are used, explain their impact on revenue and cash flow, and uncover real-world examples.
Cutting Through Financial Jargon
What exactly are bookings vs billings vs revenue? Let’s start with the defini ..read more
BillingPlatform Blog
2M ago
There are numerous billing frequencies available (bi-monthly, monthly, quarterly, etc.), subscription-based companies typically offer an annual subscription or monthly payment plan. Many will give customers a choice between the two, but have you given much thought as to which payment model is better for your business? While there’s not a definitive answer to this question, there are some basic tactics that will put you on track to long-term growth and profitability, while providing wide customer appeal.
Before walking through the pros and cons of annual vs. monthly billing cycles, let’s look a ..read more
BillingPlatform Blog
2M ago
Common among subscription-based software-as-a-service (SaaS) businesses, unbilled receivables is revenue the company has earned, with invoices sent in arrears. Simply put, unbilled receivables equates to the amount of revenue that is billable.
For subscription-based companies, revenue is received on a monthly, quarterly, or annual basis even if invoices have yet to be generated. Regardless of the business model, most companies encounter unbilled receivables – which is an asset account that represents the value of the products or services provided to the customer.
Why Companies Have Unbilled Re ..read more
BillingPlatform Blog
3M ago
On the surface billing is an easy concept to understand, however there are numerous independent applications that work in unison to create the billing system architecture. Each of these components provide the functionality required to create a billing system architecture that enables you to move beyond basic billing functionality to handle the complexities of today’s billing requirements.
Billing requirements may vary between industries and from company to company. However, there are certain billing components like the billing engine, rating engine, and payment processing that are core to ever ..read more
BillingPlatform Blog
4M ago
Depending on your needs, workflow can be simple or it can be extremely complex. However, one thing is certain – when it comes to workflow automation, there are some misconceptions. Take for instance workflow versus billing process management (BPM).
While the terms are frequently used interchangeably and both optimize and streamline repetitive tasks and processes, workflow is considered a component of BPM. BPM, on the other hand, is a broad and dynamic discipline that can consist of multiple workflows.
Companies can use workflow automation software to replace paper-based and manual processes an ..read more
BillingPlatform Blog
4M ago
Cloud services continue to evolve for businesses large and small (no matter the industry). This environment features many benefits like improved performance and high availability, business continuity, centralized data security, and cost savings. While the cloud has been adopted for many internal processes, billing and more specifically subscription management are only just beginning to embrace cloud-based subscription management and its benefits.
Why Cloud-Based Subscription Management?
From when a customer signs up to ‘subscribe’ until cancellation, subscription management encompasses all asp ..read more
BillingPlatform Blog
4M ago
The software-as-a service (SaaS) market is worth about $3 trillion and could reach $10 trillion by 2030 McKinsey estimates. With growth projections at extraordinary levels, getting your pricing strategy right is even more critical. SaaS pricing models rely on your offering’s perceived value, and that means striking the right balance between your offering’s value and its price so you can differentiate your business in this increasingly crowded market.
The Rise of SaaS Business Models
From its humble beginnings in the 1960’s when MIT developed the first Compatible Time-Sharing System (CTSS ..read more
BillingPlatform Blog
4M ago
By 2Q2023, consumer debt reached an eye-watering $16.84 trillion – an increase of 4.5% from the previous year. U.S. credit card debt and other types of revolving loans surpassed $1 trillion in August 2023, with outstanding balances on bank cards climbing to 18.1% above where they were in 2022. With inflation sticking around, the amount of money owed is leaving households and companies struggling to make payments. So whether you’re a small and medium-sized business (SMB) or a large enterprise, one thing is certain – collecting unpaid debt is time-consuming and filled with challenges. This is wh ..read more
BillingPlatform Blog
4M ago
The subscription economy is certainly a hot topic. But, what does the subscription economy really mean? What are its advantages and disadvantages, how do you win in this economy, and what does the future hold for this business model?
First let’s look back, the subscription business model itself has been around since the 17th century. As the world evolved and technology advanced, so did the appeal of anything-as-a-service (XaaS). Over the last few years, organizations have seen explosive growth for subscription-based services. This has prompted companies to make the transition from traditional ..read more