Automation – A Tech Services Slam Dunk
By Paul Johnson
CPA, CGMA, MBA
If you’re a growing software services company running business systems the way you did when you started, it might be time for a change. A newly-released analyst report from Ventana Research gives a clear understanding of today’s SaaS challenges, and how automating the billing process can overcome them.
Let’s break it down.
Automation Simplifies Billing
Technology services company billing is anything but simple, and if you’re operating with in-house systems, it’s probably more complicated than it needs to be. Maybe you sift through spreadsheets or isolated systems for hours to get simple answers, or spend long tracking discounts, plan changes, usage charges and subscription modifications. This wears on client satisfaction and company margins when over or underbilling happens as a result.
According to Ventana Research, “Only 20 percent of participants who have finance and accounting roles, and fewer than half overall, are satisfied with their subscription invoicing process…most say it requires too much effort.”
While you probably can’t affect subscription-related complexities, you can automate things like where and how you access your data, and how many spreadsheets you use.
Automation Unifies Your Teams
When your businesses processes lack automation, your teams are divided. You’ve got sales and marketing on one end, responding to clients and the market, and finance on the other, responding to increased workload of more reconciling and reporting.
However, with automation, finance is happier because their reconciling and reporting is done for them, and sales and marketing is happy because they are able to market needs with reduced push-back. Win-Win!
Automation Keeps You Compliant
I’m sure you’ve heard that a new set of compliance standards are coming soon – ASC 606 and IFRS 15 – which means more complicated bookkeeping.
Technology services that use a strong financial management system can better handle complex revenue recognition than companies still relying heavily on spreadsheets. Automated billing is sorted more consistently. Teams can quickly dive into transactions. Much of the compliance details are organized for easier reporting.
A Tech Services Slam Dunk
When you automate with the right financial management system, you can house all your data in one place. Subscription details go from scattered and error-prone to controlled and accurate.
In Ventana’s research, 85 percent of companies that use a dedicated subscription billing software said they’re satisfied with their systems in place, measured up against the 50 percent of those companies that still use spreadsheets.
When software service companies bring on a best-in-class financial management system like Sage Intacct, they get real-time visibility into data, can keep track of critical revenue recognition information. Teams collaborate effortlessly. Data stays reliable and strong.
If your teams are struggling to stay ahead with your current setup, let us help you find the right solution for your company.
Give us a call – we want to see you dunk one in the bucket with automation streamlining – Swish!