Nothing beats having customers who consistently utilize your company’s services from one month to the next. While there is the option of preparing and sending an invoice by mail each billing cycle, there are advantages to looking into a plan for B2B recurring billing processing. Along with the benefits that you enjoy, your customer will also find this approach helpful. Here are some examples to keep in mind.
Simplifying the Accounts Receivables
The concept of recurring billing processing involves automating the generation of the invoice and remitting it to the customer. Increasingly, the remittance is handled electronically. This could mean your client is notified by email that the latest invoice is now ready for review and downloading by accessing the customer account. There’s also the option of directly emailing the invoice to an email address provided by the customer. With either approach, the invoicing is generated using software and requires little to no intervention on the part of your accounting team.
Payments Are Easier for the Customer
Recurring or automated billing allows for payments in more than one way. While your customer could choose to print out the invoice and remit a payment by mail, there’s another approach that offers the greatest level of convenience. That’s allowing the invoice to be paid by some type of automatic draft on an agreed upon date.
For example, your arrangement with the client involves preparing and sending out the invoice electronically by the 2nd of each month. On the 10th of each month, the amount owed is deducted from the checking account or credit card account provided by the customer. This approach allows a full week for the client to post the deduction before it happens.
Thanks to this approach, your customer does not have to be concerned about incurring late fees or taking the time and effort to print out an invoice, cut a check, and gets the check in the mail.
Your Cash Flow Is Healthier
There is no doubt that cash flow makes a difference in how you can operate your business. One of the great things about offering recurring billing to your clients is that payments come in sooner rather than later. You already know how much money will come in by the 10th of each month, so it’s easier to structure your payables accordingly. In the best case scenario, it’s not only your clients who avoid having to pay late fees and penalties. When the recurring payment plan is set up properly, you in turn can pay your vendors and suppliers on time and keep your costs of doing business with them lower.
Both Parties Are More Likely to Stay Together for Years
You and your customers like anything that makes the essentials of running a business easier. The right type of recurring billing strategy means your customer can focus more on growth and less on taking care of day to day accounting tasks. You in turn are happy with the faster receipt of the balance owed. With both of you happy, the arrangement can go on for years.
Talk with a provider today and explore the range of features available with this type of arrangement. Identify specific ways that this approach to invoice processing will make life easier for you and for your clients. You’ll find that it’s something you and your customers will like.