With billwerk you can use periodical or prorated recurring billing or usage-based metered billing
With billwerk you can use periodical or prorated recurring billing, usage-based metered billing
billwerk takes care of and enters interim and final billing.
We know what to pay attention to when conducting financial accounting in Germany.
Automatically recurring billing
billwerk bills for you automatically: from set-up fees to test phases, metered billing, periodical components, or add-ons.
Data volume, service calls, hardware deliveries – everything that can be counted can be billed as “use” by billwerk, either at the end of the ongoing contract period or right away.
During a contract period change, an upgrade, or immediate cancellation, billwerk automatically takes on the interim or final bill or prorating.
Billing with your corporate design
billwerk creates recurring bills in your corporate design and reliably delivers them via e-mail, post, or in a downloadable format for your customer portal.
Manual billing and credit
For services outside of the subscription contract, create your bills or credits in the meantime – manually or via the billwerk API.
If a bill results in a credit balance for the customer, a credit item is automatically created. .
You consolidate tax rates for different countries, and billwerk automatically applies them to the billing. Reverse-charge processes for B2B customers in other EU states are possible.
Languages and currencies
Products and bills are simply translated into the desired languages, and the tax rates are added automatically. You can determine the prices of any number of currencies.
billwerk saves all billing and payment information of a contract account. With one click this information is sent to your financial accounting software via DATEV export. billwerk also optionally books to debtor accounts and forms deferred revenue.
Subscription Management & Recurring Billing with billwerk
billwerk is the Subscription Management & Recurring Billing software for your subscription business. Test billwerk with all features and functions without obgliation.
Find out more about Recurring Billing
What is Recurring Billing?
Recurring billing occurs when a retailer or service provider (collectively, vendor) invoices a customer for certain goods or services repeatedly and settles the invoice (compare Recurring Payment and Subscription Payment).
Recurring billing requires that the customer authorizes the vendor in advance to collect future recurring charges (invoice amounts) (e.g., by credit card, SEPA direct debit mandate or PayPal). This process is carried out until the customer withdraws the authorization.
Any product or service that is suitable for being subscribed to or rented regularly is suitable for this purpose. It is irrelevant whether the prices/rate options (or a combination of both) remain the same or vary.
What are the types of Recurring Billing?
There are many types of recurring billing across various industries. The most common forms of recurring billing include subscriptions and membership fees. Typical examples include cell phone bills, gym membership fees, utility bills, magazine subscriptions, or software-as-a-service, internet service providers, and many more.
What are the benefits of Recurring Billing for customers?
For customers, subscription and recurring billing bring various benefits. Among others, higher liquidity, and more convenience. Recurring billing is more convenient because the order placement, as well as the specification of the payment data and the authorization for the billing, only must be given once. Greater liquidity because the cost of a product or service is often spread over months or even years.
Example: In the past, creatives had to pay up to 3,500 euros per license for Adobe Creative Suite, depending on the version scope. The amount was due immediately. For a version update, 1,000 euros would be charged additionally. Today, subscribers pay around 70 euros per month (840 euros per year) per license for Adobe Creative Cloud. You can cancel at any time.
What are the benefits of Recurring Billing for resellers and service providers?
It’s not just customers who benefit from subscription models; vendors benefit as well. They gain more insight into customer behavior and have the opportunity to adjust their marketing and sales campaigns. In addition, recurring billing provides companies with reliable revenue streams. Unlike one-time purchases, companies can plan for the long term. A broader and more specific product range is also possible thanks to recurring billing. Product updates or maintenance contracts can easily be processed and offered to customers. License scopes can be expanded, and customer loyalty increased. At the same time, the barriers to entry are lowered: potential customers are more willing to try out a product as part of a monthly payment than to purchase the full product scope straight away. Upgrades and downgrades are also possible, so the product or service can always be adapted to customer needs.
For who is Recurring Billing suitable?
Recurring billing as a business model is suitable for any company that issues recurring invoices to its customers – regardless of size. Digitization enables a wide range of industries to use it. These include the SaaS industry, hosting & IaaS, digital media, e-publishing, e-commerce, health & online, and of course streaming media. E-learning platforms and smart services also benefit.
But it is not only new, digital products or services that can be offset with a corresponding platform. Established industries such as the food and beverage industry, passenger transport (with monthly and annual passes) or fitness studios can also automate payments and thus simplify their operational processes. Recurring billing software is a good choice for any company that generates revenue through recurring billing.
What is Recurring Billing software?
Recurring billing software is a billing and payment software. It includes all the necessary applications to automate billing, avoid late payments and, most importantly, simplify processes for both the vendor and the customer. In addition, it has extensive options for clearly displaying a wide range of KPIs.
What is cloud-based Recurring Billing software?
Unlike proprietary applications, cloud-based software solutions store data online – accessible at any time. Especially large companies with multiple locations benefit from the fact that all data is available in real-time at any location (any branch). Of course, the data is protected against loss and access utilizing the latest security standards.
What are the challenges with Recurring Billing?
Recurring payments pose major challenges for companies, especially when their number increases. Manually keeping track of the flood of data and information is almost impossible. Additional staff is needed to handle processes and keep track of all necessary KPIs. Reconciling invoices and managing open items (including dunning procedures) takes time. Navigating international banking procedures is also time-consuming, and non-payments (e.g. due to changed address or account data) and incorrect bookings potentially harm the business. Therefore, once a company reaches a certain size, it is essential to automate recurring billing with the use of the software.
How does Recurring Billing software work?
Once a customer has subscribed to a product or service, recurring billing software ensures that recurring payments are processed on time and securely. Appropriate gateways are used for this purpose. Once authorized and processed, the transaction can be routed to accounting and reporting for detailed revenue recognition. A customer history (viewable at any time) provides information on all bookings for each customer. For example, open payments, reminders, and other irregularities can be viewed. The software recognizes these automatically and issues multi-level reminders without employees having to deal with them manually. However, the vendor has complete control over when invoices are sent and what notifications are sent to customers to ensure timely payment.
6 Benefits of Recurring Billing Software:
Using software to manage recurring billing offers businesses numerous benefits:
- Improved data management: A high-quality recurring billing system makes it easier to capture, manage, retrieve, and analyze billing data. As a central location for storing data, it also enables the flexible management of customer relationships. Additionally, it enables data to be transferred to other systems such as MES and ERP, if required.
- Increased transparency: One of the most important benefits of recurring billing software is the improved visibility of internal processes. Users maintain an overview and can display relevant information in a targeted manner.
- Improved efficiency: If you no longer manually take care of invoices and reminders, you have more time to focus on your core business. This is particularly advantageous in times of increasing digital networking, heightened global competition, and constantly changing customer requirements.
- Increased ease of use: Recurring billing software enables companies and their employees to send invoices automatically, to send automated reminders in the event of late payments, and to always keep track of all tasks.
- GDPR compliance: Data protection is one of the key issues in customer data management. Far too often, companies still operate in legal grey areas or murky waters. Their own competencies or the proper handling of sensitive data are often not clearly understood. Recurring billing software relieves companies of this challenge and ensures legal certainty with tested conformity.
- Simplified customer acquisition: Trial subscriptions can help with increasing awareness and sales. This would almost be impossible to achieve without an automated recurring billing solution. The status of each trial subscription must be tracked manually; access is terminated at the end of the trial period. If payments are billed automatically, this problem does not exist. If customers subsequently opt for paid usage, recurring invoices are automated with no employee effort.
What are the main features of Recurring Billing software?
With features like these, recurring billing systems can help businesses save a lot of time and money:
- Billing: Invoices for recurring payments can show all types of charges, including pending or open payments, interest, or taxes. In doing so, recurring billing platforms generate a clear history along the complete customer journey. In addition, the billing function can automate the creation, scheduling and sending of invoices. Customers also have the option to conduct upgrades, downgrades, or data changes, among other things, via a self-service portal.
- Dunning: The dunning function is an essential component of recurring billing software. It helps the vendor to deal with failed payments (e.g. bounced checks or declined credit cards). Tedious and time-consuming tasks such as repeated debiting of the payment and communication with the customer are automated. In this regard, state-of-the-art billing systems can send automated form-based emails to inform customers about non-payments, price adjustments and next steps.
- Product Catalogue: Software that processes recurring invoices has one primary goal – to simplify processes and free up capacity. Each product has its price plan, additional services, fees, or currencies, which makes things even more complex. A product catalogue helps to centrally manage all product lines and plans and to accelerate the time-to-market for products or services.
- Analytics & Reporting: Every company monitors key metrics such as (monthly) revenue, churn rate, and customer acquisition costs. Subscription data allows for meaningful analytics that can be used to align a business. Ergonomic, customizable dashboards provide all the necessary information clearly and in detail. In this way, revenues can be analyzed from various perspectives such as product, sales, marketing, finance, and customer loyalty – appropriate recommendations for action can be derived.
Recurring Billing for enterprise (and midsize) companies
With increasing company size, the complexity as well as the degree of digitalization and automation increase. A multitude of different software solutions interact with each other to ensure that operational processes run smoothly. ERP and CRM systems, marketing automation and/or work management software are growing into a sensitive construct. Established and above all mature solutions are necessary while agility and flexibility, as well as connectivity and interface diversity, are crucial. Especially in interaction with ERP and CRM systems, recurring billing solutions enable their users to fully use their own potential.
Inhouse solutions or Recurring Billing software?
Inhouse solutions offer recurring billing providers the advantage that the competencies are within the company and the distances for coordination are short. The complete control over the development process without dependencies on external providers is also a point for developing the recurring billing software in-house.
However, there are also many disadvantages. On the one hand, continuous improvement becomes difficult due to scarce or missing industry-wide experience and comparisons. Further developments are costly and resource-intensive, and there is often a lack of funds or resources to implement projects or initiate improvements. Developing new modules or scaling one’s own business is often a huge challenge. In addition, there are costs for implementing and maintaining the IT infrastructure. These are also incurred if the recurring billing software is not expanded. No support can quickly help with problems, such as server failures or protect against data loss. Also, in-house rarely offer a state-of-the-art standard.
Modern recurring billing solutions impress through their high level of maturity and a comprehensive range of functions. Especially in terms of compatibility with other software systems, scalability, and ergonomics, recurring billing platforms available on the market offer the user more options and higher standards. State-of-the-art security, robust and performant structures, as well as a continuous development aligned to the requirements of the market, are the decisive advantages.
What should you look for when choosing Recurring Billing software?
A well-integrated recurring billing platform has a high degree of automation. It allows companies to invoice and bill for recurring and dynamic subscription services. A high-quality recurring billing system features a consistent API-first approach, can handle in-app purchases with Apple or Google and manage customer relationships in real-time. In general, the software should offer the necessary flexibility to map different payment methods and multi-level pricing models. All data is securely captured, analyzed, and contextualized to create a basis for business decisions.
The most important criteria away from the applications are an intuitive user interface that enables quick familiarization and uncomplicated use. Comprehensive support from the manufacturer throughout the entire product lifecycle is also a decisive criterion when selecting a good recurring billing solution.
What is the difference between Recurring Billing and Subscription Billing?
Subscription billing is a payment model where companies charge according to a specific schedule (e.g. once a month, once a quarter, annually, etc.). Subscription billing is therefore by definition the same as recurring billing and can be used interchangeably.