Best practices for SaaS subscription spend management
Here are some best practices to consider for managing recurring bill payments and subscriptions in your SaaS business:
Automate as much as possible
Automation is key in any business process, but it's especially important when it comes to subscriptions and recurring billing. The more things you can automate, the less time you'll have to spend manually processing subscription payments. Here are some specific key benefits of using automation for recurring payments and subscriptions:
- Improved accuracy – Automated recurring payments reduces errors in billing by eliminating manual data entry and reducing human error. This reduces the risk of being overcharged and misuse of your budget.
- Reduced manual labour – Automated recurring billing frees up time for your team members to focus on higher-value activities. Imagine how much your finance and accounting team can accomplish with more available time.
- Increased efficiency – Automated recurring billing allows you to scale quickly without adding additional resources to your team — a must for growing companies.
Ensure good record tracking
A robust subscription spend management system will allow you to keep track of all your information in one place (including your subscriptions and payment history).
Integrate your accounting system with the platform you use to manage recurring bills
These integrations will make it easier to track all recurring payments and subscriptions and make it easy to reconcile your accounts payable and receivable at month's end.
Create payment schedules that work best for your business
Some businesses may want to set up automatic monthly payments because it works best with their cash flow requirements. Others prefer quarterly or annual auto-payments, so they don't have to worry about making manual payments so often. With subscription management software, you can set up the best schedule for your business.