SaaS migration is one of those things that few companies can avoid in today’s day and age. A shift to this way of doing business requires accounting teams to embrace advanced recurring billing payment processing. Not only does complexity increase as more users sign up on different payment frequencies, but teams are often not equipped with best practices or tools to handle the growing number of transactions.
Effective collection of recurring payments requires adherence to global accounting standards like ASC 606 and IFRS 15, a dunning strategy, streamlining and automation across many processes and a plan to handle the complications of deferred and earned revenue.
Few companies have the luxury of choosing whether they want to deal with recurring payments or not. The fact is that flexible payment and billing options have become the standard expectation from customers. Optimizing your recurring payments is the new normal, so we put together this
9 best practices for recurring payments management
- Get up to speed on revenue recognition for different billing types
- Protect customer data and financial information with secure billing software
- Transparent payment policies are key to building customer trust
- Communicate tweaks to pricing no matter how minor they seem
- Create a solid dunning strategy to reduce revenue leakage
- Keep a close eye on reports and pay attention to churn metrics
- Make sure your customers have options when it comes to payment frequency
- Know your GAAP guidelines and be sure to adhere to them
- Invest in subscription management software for effective automation
For a thorough breakdown of each of these best practices,