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5 B2B SaaS subscription billing mistakes to avoid in 2024

by | Jul 2, 2024 | Public Relations

One of the most important aspects of running a B2B SaaS company is subscription billing management.

If you fail to manage the complexities of subscription billing properly, it can lead to costly mistakes that could hinder the growth of your entire company. 

So, what are the B2B SaaS subscription billing mistakes to avoid in 2024? Let’s discuss them below. 

1. Ignoring Regulatory Compliance

B2B SaaS organizations must keep up with certain regulatory compliance requirements, such as financial compliance and data security compliance.

If you fail to adhere to these compliance requirements, you can face regulatory investigations, legal action, or damage to your reputation. You may have to pay fines or even lose your business license. 

Due to the complex nature of most B2B SaaS pricing models, it can be difficult to track financial compliance requirements like revenue recognition accurately. Hence, a great way to ensure you’re up-to-date with the necessary regulatory compliance requirements is by using B2B SaaS subscription billing software that automates it. 

As explained in the Younium guide, you don’t have to worry about keeping up with the complexities of regulatory compliance if you are using the right tool. This is because it automates your revenue recognition and ensures you remain ASC 606 and IFRS 15 compliant at all times.  

2. Lack of Customization

One of the most common mistakes B2B SaaS organizations make when it comes to subscription billing is a lack of customization. 

Regardless of the number of customers you have, each one of them wants to feel like they’re your top priority. One of the best ways to show this is by customizing the invoices you send to them.

You can read and compare features and pricing of all the best tools in the expert curated and reviewed list such as Attrock recurring billing software that elaborates each software in detail.

It is important to note that customization goes beyond adding each customer’s information to their invoices. You can also customize your pricing models to meet the specific needs of each customer. 

Rather than limit your customers to flat rates or tiered billing models, you can also give them the option to get customized pricing models that can align the value you give them with the price they pay. 

3. Lack of Third-Party Integrations

One of the mistakes you must avoid is assuming there’s no need for an extensive range of third-party integrations. Even the best B2B SaaS subscription billing tools need room for third-party integrations and multiple payment gateway options that can facilitate seamless billing and invoicing processes

If the B2B SaaS subscription billing tool you use only provides limited payment gateway options to your customers, it will impede the growth of your business. This is because customers who face difficulties during payment are less likely to continue doing business with you.

The tool you use should also easily integrate with third-party apps that enable you to connect to your CRM systems, sales channels, and financial backend. For example, you can use tools like Younium, which provide ready-to-use connectors that allow third-party integrations with:

  • Stripe
  • Slack
  • TaxJar
  • Xero
  • Salesforce
  • NetSuite

4. Failing to Use Automation

If you’re still relying on tedious, manual billing processes in this digital age, you’re setting your business up for mistakes that could be detrimental to your company.  

Ditch the messy spreadsheets, manual calculations, and clunky methodologies. Instead, use tools that can automate billing processes, giving you more time to focus on the big-picture stuff, as a Small Business HQ guide advises. 

Here are some ways subscription billing tools use automation to provide more efficient invoicing and billing processes. 

  • It automates price calculation based on customers’ usage
  • It provides customizable invoice templates 
  • It automates invoices based on subscription data

5. Lack of Dunning Strategy

As a B2B SaaS company that offers subscription-based services, there are bound to be customers who default on payments from time to time. 

What do you do about customers who fail to make payments when they’re due? Do you just leave them and proceed to the next paying customer? Absolutely not. You’d only be leaving money on the table. 

That is why it is essential to have a dunning strategy set in place. By dunning, you can send payment reminders to notify customers of their unpaid invoices or failed payments. 

If you have a large customer base, it can be difficult to create a dunning strategy for each customer while managing other aspects of your business. 

With a robust subscription billing tool, you can create invoice templates with enterprise-specific messages. This allows you to send customized invoice reminders and manage your account receivables easily.

Conclusion

Some of the most common B2B SaaS subscription billing mistakes organizations often make include ongoing regulatory compliance, failing to use automation, and not creating a dunning strategy.

Additionally, failure to customize your invoices or use billing tools that allow extensive third-party integrations can also be detrimental to your business. 

Overall, the B2B SaaS subscription billing tool you use can play a huge role in helping you avoid these mistakes. 

Remember, with the right billing software, you can automate revenue recognition, dunning, and other essential billing processes. This will save you time and resources, allowing you to focus on growing your business.

Reena Aggarwal
Reena is Director of Operations and Sales at Attrock, a result-driven digital marketing company. With 10+ years of sales and operations experience in the field of e-commerce and digital marketing, she is quite an industry expert. She is a people person and considers the human resources as the most valuable asset of a company. In her free time, you would find her spending quality time with her brilliant, almost teenage daughter and watching her grow in this digital, fast-paced era.

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