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How to Setup Automated Billing: A Step-by-Step Guide

How to Setup Automated Billing: A Step-by-Step Guide

So, you’re thinking about migrating to a touchless, automated billing system? If you are, then you’re on the right track, and you’re in the right place to get it done. 

At Received, we realize CFOs and finance executives need a powerful system in place to help their finance department achieve god-tier efficiency. 

In this post, we’ll break down all of the steps necessary for how to setup automated billing so you can optimize your man hours and reach a level of continuity with your billing protocol. 

Step 1: Understand Your Company’s Billing Requirements

Before we dive right into the setup, it’s crucial to have a clear understanding of your company's billing requirements, what the stipulations need to be, and what you need to accommodate in order to reach a level of scalability with your billing. 

Naturally, this involves evaluating your current billing processes, identifying pain points, and determining the features you need in an automated billing system!

Here are some of the core items you should consider before adopting any new billing system:

Key Questions to Ask Yourself:

  1. What is our billing cycle? How often do you invoice your clients? Monthly, quarterly, annually? The frequency at which you bill your clients will make a big difference in how often you need to send invoices (and if it’s a manual process, it can take a ton of time).
  2. What is our pricing model? Do you offer subscription-based services, usage-based pricing, or a combination?
  3. How complex are our contracts? Are your contracts straightforward, or do they involve multiple products, services, and custom terms?
  4. What will it take to integrate our system into an automation tool? Which systems (CRM, ERP, accounting) does your billing system need to connect to?

These are the pillar questions you need to ask in order to start moving with any automated tool. 

Step 2: Explore The Features and Capabilities of Automated Tools

The automation tool you spring for needs to be capable of handling all segments of billing, from contract management, to invoicing, to collections and reconciliation. There’s a handful of tools out there that tout a big game, but they can often lack one or two integral components necessary to make the process fully complete.

Some will handle one or two sections of your billing process automatically but require manual entry in other areas.

In order to scale your brand’s billing sequence, you need a wholly sustainable solution that touches all points.

Received brings a whole toolbox of features that tackle the real headaches of B2B billing, making your workflow smoother and smarter. Imagine not having to stress over the nitty-gritty of subscription revenues anymore. With Received, automated billing cycles take care of the heavy lifting, from sending out invoices to handling renewals. 

But it doesn't stop there. If you've ever found yourself tangled in complex contracts with layers upon layers of custom terms and pricing, Received simplifies this with a few easy clicks. 

And because no business operates in isolation, Received fits right into your existing setup, linking up with the CRM, ERP, and accounting software you already use. This means your operations stay connected, without any gaps. Plus, there's room to make it your own. 

Whether you’re all about straightforward self-serve subscriptions or you’re juggling enterprise-level contracts, Received lets you tailor the billing process to fit what your business really needs. 

Step 3: Connect Your Existing Systems to Your Chosen Tool

Adding Received (or any other automated billing platform, for that matter) to your current systems is a critical step toward regulating consistency with your data and simplifying your billing process.

Here’s the checklist we follow and encourage you to follow as well:

  1. CRM Integration: Sync customer data to verify billing information is up-to-date.
  1. ERP and Accounting Software: Connect your financial systems for accurate revenue recognition and financial reporting.
  2. Custom Pairings: You can use our API for integration and data validation to make sure all of your systems dwell in harmony with each other.

Step 4: Configure Your Billing Model

Setting up your billing model with Received is easy as pie and incredibly flexible. We give you a way to customize exactly what you need according to your company's unique needs. 

First off, you'll dive into defining the products and services that your business offers. This includes all the different variations or tiers you might have. It's pretty straightforward. After that, you'll define your pricing. Whether you're sticking to fixed rates, venturing into usage-based pricing, or mixing things up with hybrid models, Received has got you covered. 

Then, there's the part where you tailor your billing cycles to fit just right—setting up how often you invoice your customers and pinning down any specific billing quirks your service might have. 

And lastly, to make welcoming new customers as smooth as peanut butter, you’ll create a bunch of contract templates. This step is all about getting those contract types neat and tidy so onboarding is easy and fast. 

Step 5: Automate Your Invoicing and Payment Collection

Automating invoicing and payment collection is where Received truly shines, eliminating manual effort and reducing the risk of errors.

Automation Features:

  • Invoice Generation: Generate and send out invoices based on the contract terms.
  • Payment Processing: Integrate with payment gateways to collect payments efficiently.
  • Dunning Management: Set up auto-reminders for overdue payments to maintain healthy cash flows.

Step 6: Monitor and Optimize Your Billing Processes

With everything in place, it’s important to continuously monitor and refine your billing processes to make sure they meet your business needs and compliance requirements.

Monitoring Tools:

  • Analytics Dashboard: Use Received’s analytics to gain insights into billing efficiency, revenue streams, and customer behavior.
  • Real-time Reporting: Stay informed with up-to-date financial reports, helping you make informed decisions.
  • Compliance Checks: Ensure your billing processes comply with relevant financial regulations and standards.

Wrapping Up: Let’s Get Your New Billing Method Off the Ground

Setting up automated billing with Received helps B2B mid-market tech companies significantly augment operational efficiency, improve cash flow, and deliver a better customer experience. 

If you follow these steps on how to setup automated billing in the way we’ve laid them out, you’ll be lightyears ahead of where you once were, thereby freeing up valuable time and resources to focus on any other initiatives you deem fit.

So at that rate, are you ready to streamline your billing and revenue management? 

Explore Received today and take the first step towards automated billing excellence.