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When finding the right solution for your subscription billing needs, many face the dilemma of whether they should build or buy. A quick Google will give you multiple takes on the pros and cons of each, often leaning more heavily towards the “buy” answer. However, each approach has good reasons, and what works for one company won’t always be the best solution for the next. In this blog, we will focus on the nuances of the dilemma, addressing the core challenges that face companies where billing efficiency is critical to overall performance.

 

What to consider when deciding whether to build vs buy billing software

 

1. Gain a comprehensive understanding of what subscription billing solutions can achieve

One of the critical steps in making the right choice for your company is to gain a comprehensive understanding of what a subscription billing solution can do. What are the features your company needs to make operations run smoother? And even, do features you don’t know about exist that can make your team’s life easier? Many companies are surprised at the sheer depth of modern billing solutions and their effectiveness in removing bottlenecks and facilitating best practices. If you want to get a complete overview of what a subscription billing system should be able to do, check out our ultimate checklist for subscription billing solutions. It provides an exhaustive list of features that might help you successfully navigate the decision about whether it’s better to build vs. buy recurring billing software.

 

2. Consider the time required for full implementation

Consider the time required for full implementation when deciding between building or buying a subscription billing solution. Building a custom solution from scratch can be a time-consuming process, involving development, testing, and debugging. Depending on the complexity of your requirements, it could take several months or even longer to complete.

On the other hand, purchasing a pre-built solution typically offers faster implementation, as the software is already developed and ready to deploy. This can significantly reduce the time it takes to get your billing system up and running, allowing you to start realizing benefits sooner. However, it’s essential to weigh the trade-offs between time to market and customization options to ensure the chosen solution aligns with your company’s needs and timeline.

 

3. Assess each option in line with business requirements to determine what’s feature bloat and what’s necessity

When assessing each option in line with business requirements, it’s crucial to distinguish between feature bloat and essential features. Feature bloat refers to unnecessary functionalities that may complicate the system without adding significant value to your business operations. On the other hand, identifying necessary features ensures that your subscription billing solution meets your specific needs and supports your core business processes effectively.

To determine what constitutes feature bloat versus necessity, engage stakeholders across departments to understand their workflows and pain points. This collaborative approach can help prioritize features that streamline operations, enhance efficiency, and contribute to overall business success. Additionally, consider scalability and flexibility, as the chosen solution should be able to adapt to future growth and evolving business requirements without unnecessary complexity. Once you have a clear picture of what you’re looking for, it’s time to build a roadmap to help with the migration to a new solution.

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4. Tailoring a solution to meet unique requirements

Tailoring an existing subscription billing solution to meet unique business requirements is essential for maximizing its effectiveness. While pre-built solutions offer a range of features, they may not perfectly align with every company’s specific needs. Building a custom solution provides the opportunity to incorporate tailored functionalities that address unique challenges and support distinctive business processes.

By working closely with developers and stakeholders at the solution provider’s company, it’s possible to build workflows that are customized to fit exact requirements, resulting in a more efficient and seamless billing process. Additionally, customization allows for greater flexibility and scalability, enabling the system to adapt to changing business demands over time. However, it’s essential to balance customization with considerations of development time, cost, and ongoing maintenance to achieve the optimal solution for your organization.

 

5. When can you expect to see an ROI

Determining when you can expect to see a return on investment (ROI) from your subscription billing solution is crucial for making an informed decision. The timeline for ROI realization can vary depending on factors such as the cost of implementation, the efficiency gains achieved, and the overall impact on business operations. With a pre-built solution, ROI may be realized relatively quickly due to faster implementation and immediate access to essential features.

Conversely, building a custom solution may involve a longer initial investment of time and resources but could lead to greater long-term ROI by precisely addressing your unique business needs. Factors such as increased efficiency in billing processes, reduced error rates, improved customer satisfaction, and the ability to scale operations can contribute to ROI over time. By conducting a thorough cost-benefit analysis and considering both short-term and long-term impacts, you can better understand when to expect ROI from your chosen subscription billing solution.

 

6. Consider how you will maintain the system and processes

Considering how you will maintain the subscription billing system and associated processes is vital for long-term success. Whether you build or buy a solution, ongoing maintenance is necessary to ensure the system remains efficient, reliable, and aligned with evolving business needs. With a pre-built solution, maintenance typically involves regular updates and patches provided by the software vendor. It’s essential to stay informed about these updates and implement them promptly to keep the system secure and up to date.

Additionally, training staff on any new features or changes to processes is crucial for maximizing efficiency and minimizing disruptions. For a custom-built solution, maintenance may involve monitoring system performance, addressing any issues or bugs, and implementing enhancements or updates as needed. Establishing clear maintenance protocols and allocating resources for ongoing support and development will help ensure the continued success of your subscription billing system in the long run.

 

7. Security should be central to your conversation

Security should be at the forefront of discussions when considering a subscription billing solution. Whether building or buying, ensuring the security of sensitive customer data and financial information is paramount to maintaining trust and compliance with regulatory requirements. When evaluating options, inquire about the security measures implemented by the software provider or development team.

This includes encryption protocols, access controls, data storage practices, and compliance with industry standards such as PCI DSS (Payment Card Industry Data Security Standard). Additionally, consider factors such as vulnerability management, regular security audits, and incident response procedures to mitigate risks effectively. Prioritizing security in your decision-making process will help safeguard your business and customer data from potential threats and breaches, enhancing overall trust and credibility in your subscription billing operations.

Complete guide to subscription management 2

Binary Stream Software is proud to collaborate with Progressus, a dynamic project management solution, to introduce the new Progressus Project Multicompany solution. This innovative partnership aims to empower businesses with effortless multi-company management capabilities, revolutionizing the way transactions and financial oversight are handled across entities.

This project introduces a range of benefit-driven features designed to simplify complex accounting tasks, enhance financial oversight, and improve organizational efficiency.

“Simplified financial management is crucial for businesses operating across multiple entities,” says Lak Chahal, CEO at Binary Stream Software. “Together, we’re providing businesses with a comprehensive solution that streamlines multi-company management, allowing for efficient processing of transactions like timesheets and expense reports across entities from one entry point.”
Key features of the solution include:

Businesses can seamlessly manage multiple entities within Dynamics 365 Business Central, ensuring a unified management experience. With Progressus Project Multicompany, companies can streamline transactions across entities through a single entry point for timesheets, expense reports, and more, saving valuable time and reducing operational complexity.

“Together, we’re providing businesses with a unified and efficient management experience, simplifying transactions, and enhancing operational efficiency,” says Lak Chahal.

This integration also optimizes front-end and back-end operations, enabling businesses to streamline customer-facing and administrative tasks for improved operational efficiency. For more information about Progressus Project Multicompany and how it can revolutionize multi-company management for your business, please visit this website.

Subscription billing software continues to grow as a market, as recurring revenue strategies take precedence across many industries. It’s become clear that SaaS pricing models are no longer confined to the software world; many industries, from healthcare to automobiles, are migrating to a more customer-centric billing approach. As a direct result, invoicing and payment management have increased in complexity.

Expectations regarding customer service are at an all-time high, and those who fail to provide adequate subscriber billing and payment processes are becoming obsolete. It doesn’t matter what industry you’re in. Customers anticipate a seamless billing cycle with maximum flexibility. This sets a standard that few companies are equipped to meet without investing in subscription billing software that can lighten the load. Below we’re going to walk you through the core product features you need to handle the complexity of modern billing.

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What is subscription management or subscription billing software?

Subscription management software (or recurring billing software) allows companies to implement complex subscription billing models effectively. This type of software has a wide range of features that enable companies to scale their subscription services through automating billing and invoicing, managing subscriber contracts, and facilitating comprehensive reporting and audits. It allows you to effectively manage your subscribers’ journey through the entire customer lifecycle, reducing bottlenecks, human error, and improving the overall billing experience for all involved.

 

With so many subscription billing solutions, how do you choose?

Software companies have jumped at the opportunity to build solutions to help manage this complexity. Still, not all solutions are created equal, and many lack the features you will require to scale and grow your subscriber base sustainably. Ensure you get the most value and efficiency for your money and understand the variability between solutions by asking the right questions and looking for key features.

If you’re in the market for a solution, this blog provides a comprehensive list of features (organized by functionality area) you should look for when investing in streamlining your billing processes.

 

The ultimate checklist for subscription billing software

Subscription billing software goes beyond the accounting team, affecting every facet of a company, from customer care to product development. A robust solution offers valuable data and clarity, empowering businesses to make strategic, informed decisions. This checklist aims to provide companies with the clarity required to navigate the intricacies of modern billing, helping them find a tailored solution that meets their unique needs and fosters unprecedented growth.

 

1. Features for streamlining subscription billing processes

From customizable billing options to automated renewals and the flexibility to support both free trials and intricate discounts, each feature contributes to a holistic and efficient subscription billing system. Below is a short list of the most critical features you need to look for in solutions:

8 essential subscription management software features

2. Features for comprehensive revenue recognition

One of the most complex aspects of subscription management is revenue recognition and deferrals. It’s essential to invest in software that can automate these processes across all contracts so that your team doesn’t sink time into managing these manually. For a comprehensive guide to revenue recognition for subscription billing, read this blog.

 

3. Features to support modern pricing models and strategies

Customers have come to expect options when paying for their subscriptions. To remain competitive, companies need to implement both annual and monthly billing options. You may also find yourself experimenting with different pricing models until you find the right fit for your product. The software you select should be flexible when it comes to managing recurring billing and pricing management, so that your team can tweak strategies to best serve your subscribers.

Complete guide to subscription management

4. Features to handle dunning and revenue leakage

Recurring billing faces challenges, like losing about 2% of customers monthly due to expired credit cards. Other issues, like failed payments from spending limits or cancelled cards, add to this problem. Dunning management is the way to recover these losses by communicating with customers. Despite its negative image, modern dunning can improve customer experience and boost monthly revenue. Not only that, but dunning can be automated, preventing revenue leakage without using any valuable resources.

 

5. Features for optimal payment portal experience

With modern subscription billing, payment gateways play a pivotal role in ensuring a seamless and secure recurring revenue experience. To maximize the benefits of subscription-based models, businesses must prioritize certain features in their payment portals. From PCI-DSS compliance to user-friendly interfaces. Automation of payments, easy subscriber information updates, effective dunning features, and the flexibility to transact in preferred currencies round out the key elements for an optimal payment portal experience, providing your subscribers with the peace of mind they seek.

 

6. Features to enable audit-friendly reporting and compliance

Not all software is created equal, and one of the significant differentiators you should look out for is features that enable compliance. No solution can guarantee compliance with accounting standards like ASC 606, but they should provide the tools you need to facilitate compliance with accounting standards. It’s likely that the list of features will mention revenue recognition, ASC 606, or otherwise indicated awareness of tax and compliance requirements. If you do not see this mentioned in the list of features, it’s unlikely that the software will be audit friendly.

 

customizable billing options for unique customers and scenarios

 

7. Features to ensure full integration with existing systems

The integration of software systems is paramount to the efficient functioning of a business. Ensuring a seamless flow of subscriber data and financial insights is critical for maintaining a healthy bottom line. The features required for optimal integration with existing systems go beyond user interfaces and cloud-based reporting; they delve into the very backbone of a company’s operations. From compatibility with existing ERPs and a user-friendly interface to proven integration history and expert support, the checklist for full integration aims to provide a comprehensive overview of support you will require for a smooth transition to using subscription billing software.

 

8. Comprehensive implementation support and training

Comprehensive implementation support and training are pivotal elements in ensuring the seamless integration of subscription billing tools into the heart of a business. Ongoing training and support, coupled with access to learning tools and user guides, empower users to harness the full potential of the software.

CTA for ASC 606 for SaaS companies

Binary Stream is thrilled to announce its recognition as one of BC’s Top Employers for the third consecutive year. Now in its 19th year, this prestigious accolade is a testament to the commitment to creating an outstanding workplace environment and fostering a culture of excellence.

The BC’s Top Employers competition evaluates organizations based on a comprehensive set of criteria, ranging from the physical workplace to community involvement. Binary Stream‘s dedication to providing a positive work atmosphere, competitive benefits, and a commitment to employee growth and development has earned the company a well-deserved place on the esteemed list.

Lak Chahal, CEO of Binary Stream, expressed his pride in the achievement, stating, “We’re proud to receive this recognition for the third year running and strive to constantly improve so that we can continue to be one of BC’s Top Employers. It’s especially rewarding given the wide range of criteria used to assess companies and is an important achievement in our year.”

The competition evaluates companies using eight different criteria: 

Binary Stream’s commitment to these criteria and its emphasis on values such as growth, innovation, and team has set the company apart in the highly competitive business landscape.

Chahal continued, “Our people work hard to live our values of growth, innovation, and team. I want to thank every person for making Binary Stream one of BC’s Top Employers.”

In addition to this prestigious recognition, Binary Stream has been honoured with several other workplace awards, including the recent certification as a Great Place to Work for the fourth consecutive year, and recognition for Excellence in Company Culture by the BC Tech Association. These accolades underscore the company’s consistent efforts to provide employees with a progressive and forward-thinking workplace.
To learn more about why Binary Stream is consistently ranked as one of BC’s Top Employers or to explore career opportunities with the company, please visit our career page.

In the dynamic business landscape, safeguarding your revenue is paramount for long-term success. Revenue leakage, the subtle but significant loss of income, can erode profits and hinder growth if left unchecked. In our ever-connected world, understanding the importance of preventing revenue leakage is crucial.

In our previous blog on revenue leakage, we delved into the fundamentals—defining revenue leakage, exploring its root causes, and providing a straightforward tool for calculating your profit drain. Building on that foundation, this installment focuses on actionable steps. We’ll guide you through the process of conducting a targeted audit to identify specific types of revenue leakage affecting your bottom line. Moreover, we’ll present practical solutions to plug those leaks and initiate measures to prevent any further profit drain. Let’s embark on a journey to safeguard your revenue and fortify your financial well-being.

core causes of revenue leakage image (1)

5 steps you can take to start preventing revenue leakage today

1. Rank your leaks by economic value and resource drain

When searching for revenue leaks in your company, it’s like solving a puzzle – there are leaks in various departments, and it can be overwhelming. To simplify the process, start by estimating areas where the leaks might be originating. While it’s common to focus on the top accounts, it’s crucial to involve those closest to the revenue generation process for a comprehensive understanding.

Once you consolidate your ideas about where the leakage occurs, rank the leaks by economic value (including time and other resources spent). Prioritize those causing the most significant financial impact, directing your attention to the major contributors before tackling smaller issues. For instance, if a substantial leak costs $4,500 per month while seven minor leaks add up to $1,030, address the big hitting one first.

Finally, test your theories through a thorough audit, involving the finance team and those responsible for revenue generation. This audit should scrutinize data, processes, and retrace steps related to key revenue moments to ensure accuracy in identifying and addressing the leaks. Here’s a short questionnaire to help you give your finance function a health check.

Possible outcomes of this step:

 

2. Scrutinize all vendor contracts and identify missing or expired contracts

Simply put, the first step in preventing revenue leakage is carefully checking all your agreements with your suppliers. In the business world, everything runs on contracts – from buying goods to getting services like coffee or office cleaning. Sometimes, these contracts can be a headache. They might be missing, expired, or nobody really knows what’s in them. There could be changes discussed in emails that aren’t reflected in the official contracts.

To sort this out, we recommend looking at all your contracts with vendors and customers. It’s like a checkup for your agreements. Start by focusing on the big suppliers—those who are crucial to your business. Ask your purchasing team to evaluate them based on factors like complexity and past experiences. This helps identify any potential issues and ensures that your contracts are in good shape.

Possible outcomes of this step: 

 

3. Pay close attention to your churn metrics and be proactive in reducing them

Understanding and identifying churn metrics is crucial for any company looking to grow, as these metrics provide valuable insights into areas that need improvement. In the past, calculating churn rates was challenging, but with today’s abundance of data, tracking and using churn metrics for adjustments has become much easier. Knowing your churn rate acts as a litmus test for your business health – satisfied customers will stay, while a high churn rate indicates potential issues with your service that need attention.

It’s common for companies to overlook churn metrics until it’s too late, leading to a sudden increase in churn rates that causes concern. However, proactively reducing churn rates, even when they are low, is a smart approach. By understanding why customers leave, you can make necessary adjustments to retain them and refine your services before more subscribers decide to leave. Learn more about how to calculate and reduce subscriber churn in this blog.

Possible outcomes of this step:

 

4. Audit all invoicing and billing processes and automate where possible

Making sure our billing and invoicing processes run smoothly is super important for preventing revenue leakage. It’s like giving our business a health check. By carefully auditing these processes, we can spot areas where things might be slowing down or where mistakes could be happening. The goal is to make everything work better and be more accurate. Our blog on the savings you can make by automating recurring billing is a useful resource when making a case for automation.

One way to achieve this is by using automation tools, such as special software designed for recurring invoices. These tools easily fit into our current ways of doing things and help prevent errors in our billing process. For instance, automation can handle tasks like setting billing periods and creating invoices with all the correct details. Simple changes like incorporating automation can have a big impact on ensuring we receive all the money we’re supposed to. So, looking at how we handle billing and invoices and finding ways to make it smoother can truly pay off in the long run.

Possible outcomes of this step:

 

5. Tackle project visibility and cross-functional communication

Dealing with project visibility and cross-functional communication is crucial in preventing revenue leakage, often arising from seemingly simple issues. A major culprit is insufficient internal communication. For example, if the sales team lacks information on pricing or key policies, they might unintentionally sell services at lower rates or miss opportunities for upselling. Such misalignment can lead to significant revenue leakage over time. Effective communication between teams can prevent these costly mistakes, ensuring everyone is on the same page.

Additionally, inadequate project visibility, especially in invoicing and revenue-generating processes, makes it difficult to proactively manage services and accurately assess performance. This lack of transparency can result in lost or delayed revenue. In project management, issues like scope creep, delayed deadlines, and inaccurate budget estimates can contribute to revenue leakage. Another concern is inaccurate billing due to poor tracking of billable hours, potentially resulting in services provided beyond what’s billed. Addressing these communication and visibility challenges is vital for preventing revenue leakage and maintaining financial health.

Possible outcomes of this step:

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As we step into 2024, exciting changes are coming to how businesses organize and plan their work, especially for those using Microsoft Dynamics 365. Imagine new tools like Microsoft Dynamics 365 Copilot, designed to make teamwork and getting things done much smoother. Companies are also focusing more on responsibility and following environmental, social, and governance (ESG) standards. This year, there’s a shift in how businesses plan their finances, with a focus on looking at the bigger picture. Plus, there are new ways to make billing and payments easier using automated systems. Below is a list of some of the core changes we’re seeing in the space as we head into 2024.

 

1. Global adoption of AI and Microsoft Dynamics 365 Copilot capabilities

Businesses worldwide are ushering in a new era by embracing artificial intelligence to streamline processes, enhance efficiency, and revolutionize their approach to planning and forecasting. Generative AI, the latest star in this technological evolution, is poised to transform ERP, offering a promise of modernization that spans from operational efficiency to accelerated actionable insights.

In March of 2023, Microsoft unveiled Dynamics 365 Copilot. Copilot is designed to benefit everyone in an organization. From leaders to IT professional managers, Copilot offers features that streamline tasks, automate workflows, and enhance collaboration. Its adaptability means that it can be customized to meet the unique needs of any organization. The ability to extend its capabilities through plugins makes it a continually evolving asset that can adapt to the ever-changing landscape of business needs.

 

2. Companies will be expected to meet ESG regulatory compliance standards

ESG (Environmental, Social and Governance) standards have increased globally; with conversations around how to meet fluctuating legal requirements continuing, companies will continue to focus on profitability while operating more responsibly. Microsoft Cloud leads the charge toward a more sustainable cloud, empowering organizations to progress and grow their businesses responsibly.

Solutions such as Multi-Entity Management are just one way that you can better handle operations with more responsibility. It’s predicted that the importance of ESG strategies will increase, with the complexities of more regulations adding even more complications to operating in various markets.

 

3. The rise of FP&A and XP&A

As we enter 2024, the buzz around FP&A (Financial Planning and Analysis) and XP&A (Extended Planning and Analysis) is gaining momentum. Companies are focusing on these strategic planning approaches to navigate the complexities of an ever-evolving business landscape. FP&A involves the traditional financial planning processes, while XP&A expands this scope to include a broader range of factors, such as operational and non-financial metrics.

This trend signifies a shift towards more comprehensive and integrated planning methodologies, enabling companies to make informed decisions considering financial aspects and incorporating a holistic view of the entire business ecosystem. As the business environment becomes increasingly dynamic, the rise of FP&A and XP&A reflects a strategic response by companies to enhance their adaptability and resilience in the face of emerging challenges and opportunities.

 

4. Accounts receivable (AR) automation and the importance of payment portals

As billing methods evolve in the modern business landscape, there is a growing imperative to automate accounts receivable processes (AR). What was once considered convenience has become necessary, and companies must incorporate best practices to thrive in an ever-more competitive environment. Adopting these best billing practices is essential for the smooth functioning of businesses and plays a crucial role in their survival.

In this dynamic environment, it’s not enough for organizations to implement efficient billing practices. They must go a step further by empowering their customers with tools to manage payments effectively. This empowerment includes the provision of payment portals and self-service options, allowing customers greater control over their financial interactions with the company. Moreover, integrating automated invoicing systems enhances the efficiency of the billing process, ensuring accuracy and timeliness. In a world where competition is fierce, staying ahead involves embracing modern billing practices and actively engaging customers in managing their payments through accessible and automated solutions.

 

5. Mark your calendars for 2024’s biggest Dynamics 365 community events

We’re excited about this year’s major community events and can’t wait to join you worldwide. At these gatherings, we’ll share insights into the latest ERP innovations, covering areas like revenue recognition, managing multiple entities, compliance, and modern billing. Our team will be present at several events, ready to provide advice, demos, and suggest solutions to address any accounting issues hindering your team’s progress.

Additionally, we’re eager to expand our global network of partners. Join us to explore these advancements together. Below is a brief list of key events we hope to see you at this year. Stay tuned for more details about our participation. You can also keep on top of the latest ERP innovations by signing up for some of our upcoming webinars.

Save the dates:

 

6. Discover ERP products embedded directly into Microsoft Dynamics

Embedded directly in D365 Finance, D365 Business Central, and GP, the following products will take your business processes to the next level: