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Recurring Billing Software: An Overview and Best Practices

Recurring Billing Software: An Overview and Best Practices

One of the greatest obstacles to efficient, streamlined financial transactions is human error. Lapsed payments and late fees tend to pile up not because customers no longer want a product or don’t have the means to pay, but because they forgot to submit their next payment. If you’re selling a subscription service, enrolling customers in an automatic billing program will save your customers’ time and your organization’s money.

The right recurring billing software can help both your business and your customers keep a steady payment schedule without setting reminders or forgetting to follow up.

Not all recurring billing software is the same. Before making a purchase, assess what features your organization needs, learn how to make the best of your billing software, and research your options. 

To help your organization understand and make strategic use of recurring billing, this article will walk through the following topics.


Recurring billing is about convenience and stability. As you read through the following sections, keep in mind both your business and your customers’ needs. No one is ever excited to pay their bills, which means the billing software you choose should make the process as efficient and straightforward as possible for both you and your customers. 

What Is Recurring Billing?

Recurring billing charges a customer or registrant for a product on a consistent and ongoing basis. The payments can be set be for a fixed amount of time or indefinite until the transaction is canceled or the user unsubscribes. Customers enrolled in a recurring billing program will have their subscription fee automatically deducted from their account at a set time every week, month, or year based on their subscription settings. 

In addition to preventing lapses in service due to missed payments, customers with a recurring billing plan will also avoid the repetitive nature of frequent data entry. Re-entering financial information every month is tedious and may result in customers abandoning their subscriptions. 

Customers expect a certain level of automation when making purchases online and are likely to become frustrated if they learn that a product they were regularly using expired without their knowledge. Recurring billing ensures their product renews itself without their constant attention or the need to re-enter sensitive financial information. 

For your business, implementing recurring billing systems has the following benefits: 

To summarize, recurring billing is a routine charge that is handled automatically through billing software, eliminating the need for data re-entry while stabilizing your cash flow. Streamlining the billing process gives both customers and businesses more predictable financial and service calendars. All billing software should meet these goals. However, different software may accomplish them with different features.

What Does Recurring Billing Software Consist Of?

Subscription billing software manages recurring billing for companies offering subscription-based products and services. Customers on a recurring billing plan for subscription services will make automatic, routine payments every billing cycle and receive uninterrupted use of their product or service without the need for manual renewal. 

For example, subscription software companies like Adobe have their customers sign up for monthly recurring billing. Organizations, like nonprofits, that offer membership options operate similarly such as trade associations that charge membership fees on a monthly or annual basis. 

Recurring billing software manages standard and special offers, packages, or discounts to ensure the billing process is accurate. This enables a high degree of accountable documentation, making your financial department’s lives easier. 

Besides accountants who use subscription billing software to manage revenue, this type of software can also be used by sales departments to identify a company’s best-selling products and services. Strategic use of billing software can inform decisions to adjust product offerings based on market and customer activity.

For example, after a billing cycle, your organization could use its recurring billing software to pull reports related to subscription retention to monitor which services have high attrition rates. For a subscription that had a particularly high rate, your organization might further analyze its report and discover that that service has a high payment failure rate. 

Your organization’s recurring billing software should allow you to create reports that enable your staff to identify trends and relationships, making informed decisions about the direction of your products. 

To count as subscription billing software, a product must:

While this list may seem long, different recurring billing software meets these requirements in different ways. After you’ve decided to purchase subscription billing software, research the features that will create the best experience for your business and customers. 

Typical Features Of Recurring Billing Software

Your business’s size, product line, and goals will determine which features are necessary for creating a smooth payment process that can accommodate specific customer needs. A few common features to look for when choosing software that best suits your business model are:

These features will enable your business to create billing cycles that are transparent, accessible, and unique for your products and services. Additionally, recurring billing software with robust recording capabilities will make your accountant’s life easier while automatically tracking your business’s revenue streams.

Best Practices When Using Subscription Management Software

Your recurring billing software should be a long-time purchase that continues to meet your needs as your organization grows and evolves. Once you’ve chosen the must have features, consider the technical specifications of the software.

Considerations When Purchasing Recurring Billing Software

Most recurring billing software product pages will list software features and benefits. However, before making a final purchase, assess how your new software will function with your current setup to accept a variety of payment options while remaining secure. 

Read up on product specifications to understand if your recurring billing software has:

Your billing software should make processing payments convenient for your business as well as your customers. For example, while a subscription billing service may have more features, if it can’t integrate with your current management systems, the work to set it up may consume more time than the right software will save. 

Relevant Recurring Billing Software Trends

Your billing software should still function next year and the year after that. While you may not know all the intricacies of financial processing, there are a few trends that experts predict will become integral in just a few years. Here’s two to keep an eye on:

Trends in recurring billing software tend to follow the largest clients such as banks. However, your business can benefit from these changes, too. Increased automation of payments will free up your administrators to focus on other parts of your business, only needing to check in when something requires a human touch. 

Our Top Pick for Recurring Billing Software: Regpack

Regpack’s recurring billing software comes equipped with every standard billing feature while also operating as a CRM. Regpack’s multifunctionality means your business will only need one management software subscription to handle payments, customer information, and other organizational tasks. Without the need for third parties or complicated integrations, your business can hit the ground running when setting up recurring billing. 

Regpack can be customized for your business’s unique needs. Here’s a few ways Regpack can account for and adapt to your business model:

Recurring billing software should make your business’s financial transactions fast, reliable, and convenient. Create a list of the features your business needs and envision how you will walk customers through the process of setting up their first recurring billing payments. Software like Regpack prioritizes customization to let your business include only the features you need, saving both you and your customers time and the potential for error. 

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