Subscription based billing is when services are billed on a recurrent basis. Examples of subscription services include website hosting, software, consistent access to published content, apps, music or other digital information. From a B2B standpoint, your business likely sells a service or software to another business and bills them monthly for access. This billing model brings in recurring revenue that your business can depend on.
If your business keeps its customers happy, your profits could increase. In fact, research shows that a 5% increase in customer retention could lead to a 25 - 95% increase in company revenue. It's more costly to acquire a new customer than to keep an existing one. Think about what your business' customer retention rate measures:
For your consideration, here are client management strategies to increase your customer retention rate.
If your business struggles regularly with cash flow, there could be a number of reasons why. It may be internal processes that aren't being followed or aren't working. It may be external reasons such as the market or something else altogether. In order to make any changes, you first have to determine the root cause. Instead of scratching your head and getting more stressed...
Answer these questions to address the cash flow challenges of your business.
Nothing is more frustrating to a business owner than delinquent customer accounts. Delinquent accounts and unpaid invoices means lack of cash, strained client relationships, added stress and more. Unfortunately, according to a recent survey, more than 80% of small business invoices are 30 days past due.
To avoid becoming part of the rising statistics, follow these 3 simple steps.
Whether you're a freelancer, small or growing business, the internet can be helpful or overwhelming when it comes to business advice. Accounting and accounts receivable terminology can also be challenging, especially if you're the only person responsible for your company's finances or if you're growing your accounting department. There's no need to look further because we've done much the work for you.
It's that time of year where the office seems to be a little quieter. Running a business during this time can be a challenge because there's a continual rotation of your colleagues who are out of office on summer vacations. You may have not given much thought to how summer affects your cash flow. Your A/R department may be thin and your clients' accounts payable contacts may be on vacation too.
Here's how to make sure you still have working capital through the fall...
The short answer is YES!
If you're not already charging your B2B customers late fees on unpaid invoices, you should be! You may be concerned that a late fee could be damaging to your business relationship but in fact, it establishes you as a legitimate business owner.
If your client hasn't paid your invoice yet, it could be because they have some questions about your invoice. Invoice disputes can take time to resolve. You may have moved on to other projects or be otherwise busy but if you don't follow up, your invoice remains unpaid. Would you like to avoid invoice disputes altogether?
Every week on this blog, we are sharing best practices and ideas for improving cash flow and supporting your accounts receivable department. Part of setting up your accounts receivable department for success is defining job responsibilities and hiring the right people for the job. By clearly delineating what each position should be doing, your A/R department becomes an efficient, well-oiled machine, increasing cash flow and limiting the need for collections.
There's nothing more frustrating than waiting for money. You've built a budget around it. You've planned purchases or payroll on the expectation of receiving it. You may have even noticed a trend of clients who seem to be nonchalant in getting you paid on time. You're pulling your hair out asking, "Why does this keep happening!?" Keep reading to learn why businesses fail to pay their invoices.
