Essential Advantages and Benefits of Subscription Model-Based Business

  For any organisation, accounts receivable or AR is the outstanding balance of money or invoices that its customers owe. It’s essentially an IOU. While the accounts receivable process is beneficial for any business, it comes with its problems. Therefore, it’s important for companies to devise a robust strategy to mitigate the risks associated with their accounts receivable function. This article will give insights into accounts receivable and how you can create a substantial account receivable process. What is An Accounts Receivable? An accounts receivable is the amount yet to be collected from customers, even though sales have been made to them. Some companies operate by allowing the customers to receive the product or benefits on credit and pay after receiving the service. This is very common for utility companies providing services such as electricity, telephone, or internet. Here, the customer pays for the services after using them. In instances where a company awaits payment...

  An organization's sales team takes upon itself a plethora of tasks to bring revenue to the organization. However, the journey of all the revenue streams starts from one single point- a quote. In this article, we will read about Quote to Cash- the process that involves the numerous steps in the procurement of sales by the sales department of an organization. Also, we will discuss the facets of the quote-to-cash workflow and tips on how you can improve your process. What is Quote to Cash? The journey of a sale from the original quote or the enquiry till it converts into sales bringing revenue for the company, is known as quote-to-cash. It involves a set of processes on the company's part to ensure that the quote that comes in is converted into cash. Your quote-to-cash process is a decisive factor regarding your sales as it affects the company's revenue and profitability. QTC is the process of closing a sale and acquiring revenue. It is the most important last mile to compl...

Based on the type of product or service you offer your customers, the pricing models you use, and their efficiency, can also vary. It is important to perform all the essential measures required in order to plan and implement a foolproof billing and pricing model for your firm. The two most famous pricing models for billing are subscription-based billing and usage-based pricing models. In this article, we will explore the usage-based pricing model in detail and draw out its comparisons with the subscription-based pricing model. What Is Usage-Based Pricing? Usage-based pricing or consumption-based pricing is a pricing model where the cost or the bill provided to the customer is purely based on consumption, so how much of the product or service the customer uses in a pre-defined period. At the end of a billing cycle, which tend to be monthly, the customers are charged by based on how much they have used of the product and or service. In the month when you use the product less, you pay le...