As any subscription business knows, recurring billing is complex and presents many challenges that billing for a one-time purchase does not. Different billing models, mid-month upgrades and downgrades, add-on charges, etc. all add to the complexity.
From an accounting and finance standpoint, accurate reporting each month is complicated by these factors, each of which impacts billing and can complicate revenue recognition. And as a business scales, this complexity only increases. Another challenge for finance professionals is that most ERP and CRM systems are not designed to handle recurring revenue.Continue Reading