The subscription economy is growing fast. Both business and customers are attracted by the flexibility and convenience that subscriptions and retainers offer. Billdozer’s Xero debit order recurring payment service automates the collection of Xero invoices, online billing sign up, write back of debit order payments and arrears management.
The rise of the subscription model
There has been a significant increase in businesses using the subscription model in South Africa. This model is attractive as It ensures repeat customer business for firms that sell goods, services and digital products. Importantly, it is also popular among customers so no surprise therefore that the subscription economy grew by more than 300% between 2012 and 2019.
Subscription services enable businesses to generate predictable revenue. They improve cash flow, reduce cash risk and facilitate budget planning.
Customers can be assured that they will have access to products like memberships or digital services month to month without the hassle of making more expensive manual payments. It offers flexibility and security whilst maintaining the convenience of an online purchase.
Savings associated with subscription payments as well as subscription-related loyalty programmes are an added benefit for customers. Automation of the contract management and recurring billing functions is essential for the growth and scaling of any subscription business.
Using Xero Accounting software to manage subscription payments
In order to manage the subscription and other financial processes, many small and medium businesses turn to Xero Accounting. It enables them to automate their accounting processes, saving both time and money. Xero’s more than 2 million global subscribers can attest to its excellence as a business accounting management and invoicing tool.
The software allows businesses to send invoices, create expense claims and view reports while they’re on the move, on a mobile app. It can import and categorise bank transactions so that business owners and finance teams can make the best use of their time.
As a primarily accounting service it has until recently not been easy to set up debit order collections using this platform. Normally debit orders would have to be run manually, set up with other software or with the bank, resulting in a disconnect between invoicing, billing CRM and payment functions.
Convenient Xero debit order collections
A partnership between Billdozer and Xero Accounting has changed this, allowing businesses to collect Xero debit orders. Businesses can use Billdozer as an integrated tool to manage, automate and reconcile collections. It also enables easy subscription sign-up.
Billdozer is the first third-party software in South Africa to also push the payment information back into Xero Accounting. The other benefits to our integration with Xero Accounting are:
- Automatically pull invoices directly from Xero into Billdozer
- Secure storage of banking information and a credit card vault
- Automatic creation of debit order batches by invoice due date
- Receipt and reconcile collections in Xero
- Electronic mandates for convenient Xero debit order sign up for customers
- Automate Xero recurring payments using Billdozer and Netcash payments
There are endless advantages to setting up Xero debit orders as part of your subscription offering. It will save your business time, effort and in the long run, money. This streamlined process will result in happier customers and a more efficient business.