Opting to use subscription management software is all about automating your processes. The more of the invoicing, billing and financial management you can automate, the easier recordkeeping becomes for your business. Three primary ways subscription management software makes financial management easier is it:
Automatically calculates shipping and fees
Provides instant access to tax information
If you are looking to automate your processes to make financial management easier, weigh these pros into your decision.
Recurring billing is the name of the game when it comes to subscriptions. Manually sending out invoices and managing billing becomes very cumbersome. It also requires manpower on a monthly basis (at a minimum) to manage the process for the business. Proper subscription management employs a subscription system that puts all of these processes on autopilot.
Calculates Sales Tax and Fees
Subscription software also has built-in features. One is typically the automatic calculation of sales tax and other fees associated with the subscription. Since tax rates can vary from state to state, using a subscription system makes it easier for your business to send out invoices and bills with the taxes and fees that correlate with the customer.
If your subscriptions deal with products, the same concept holds true for shipping and handling fees. Rather than making trips to the post office, shipping fees too can automatically calculate using the information in the subscription system. This saves a lot of time, effort and guessing on the part of your employees, which helps to protect the bottom line of the business.
Access to the Latest Tax Rate Information
Tax rates can change at the drop of a hat. With subscription management software, you can automatically download these updates. This ensures that your business always has access to the latest and most current information. All of this is helpful when it is time to file the business taxes as well. Downloading reports to send to your tax preparer or syncing the sales information with your tax program tends to only require a few clicks of your mouse.
When you want to automate your billing processes, you can use subscription management software to accomplish this. Business recordkeeping is much easier when you can automate your billing, invoicing and financial management for your business. Now that you know what it takes, you can weigh the advantages of subscription management for yourself.