Understand Powerful Complex Billing model for B2B Companies

Billing is not a hard task for the simple nature of businesses. But when it comes to B2B Billing, billing becomes more complex and needs flexibility. In this blog, we will cover what B2B billing is, The complexities involved, and different complex billing models.

What is B2B Billing?

The function of B2B billing is to manage B2B transactions by creating invoices, managing payments, and tracking revenue between companies. In this process, customers are set up, products are created, payment terms are defined, invoicing takes place, receivables are tracked against sales within businesses, and reconciliation takes place. There can be one-time transactions, bulk set-up for transactions, or even recurring payments to accommodate.

Traditionally, B2B billing was one of the most time-consuming operations. With the technology evolution and new flexible software for billing, many companies now have the opportunity to automate workflows, benefiting from processes such as custom fields or integration. Adding more features into the complex billing model like dozens of pricing models, product catalogs, and the ability to customize invoice templates helps businesses to get rid of complex billing processes.

How is B2B Billing Different From B2C Billing?

• Purchase decision

B2B purchase decisions are work-based and made for strategic purposes. Businesses evaluate suppliers based on factors such as cost-effectiveness, quality, reliability, and long-term partnerships. Many times, these decisions are backed by detailed cost-benefit analysis and need a formal approval process; this is reflected in their billing and invoicing terms.

• Pricing Models

B2B companies frequently use customized pricing models based on negotiated prices, volume discounts, or even tiered pricing structures for B2B companies. A robust billing system should be flexible enough to take care of these variations while ensuring the preparation of proper invoices based on the specific pricing for customers.

• Transaction Volume and Value

Since dealing is between business to business, the volume and value here will be high as compared to B2C transactions. This will have to account for flexibility in billing systems to tackle this increased complexity.

• Payment Terms

The payment terms in B2B vary from customer to customer. Here, the billing system should be flexible enough to manage various payment terms and allow some bit of customization.

• Payment Methods

B2B billing almost always involves a number of payment methods such as bank transfers, checks, credit lines, and electronic fund transfers. Billing systems must facilitate all such methods with due ease and ensure secure processing as per international standards.

 – Complex Account Structures

In B2B Billing, businesses need to manage multi-tiered account hierarchies involving several departments, subsidiaries, and parent-child relations. Billing software simplifies this by providing complex account management capabilities. You can easily create and manage these complex structures, assign different billing rules, and generate consolidated invoices.

 – Wholesale/Resale Management

Managing wholesale and resale transactions for diversified pricing structures, discounts, and volume ordering requires a complex billing model that optimizes and allows every transaction to be properly billed.

 – Complex Invoicing

Generating invoices in the B2B is no simple task, between possibly thousands of line items, different tax rates, and using custom terms. You may customize invoice templates to reflect your brand and include all information that is needed to ensure your billings are presented professionally and clearly.

 – Automated Payment Processing

Reducing manual effort and ensuring timely cash flows is possible through automated payment processing. You need a system that is seamlessly integrated with multiple payment gateways to make all transactions secure and easy. Automate reminders, scheduling of payments, and recurring billing to make sure your customers make timely payments, reducing delays and optimizing financial operations.

 – Credit Control

Maximum credit control is most important in running a financially stable business. View outstanding balances, and set alerts for overdue accounts by using a dunning management feature. This helps in managing the risk involved in credit very effectively.

 – Custom Fields

Every business’s nature is unique and runs differently based on the strategy set by the business. Custom fields to collect specific information points needed within your billing processes. It gives you the flexibility to handle various billing scenarios.

 – Product Catalog

Sometimes it is hard to manage a large product catalog with different services and prices. You need a billing system that includes a product catalog management system, allowing you to create and manage your products centrally. This feature helps you to easily manage your product offerings.

 – Complex Pricing – Bundles, Packages and Plans

Complex pricing structures in the form of bundles, packages, and even special promotions are extremely easy to handle with complex billing software. Easily define and manage billing plans that can cater to different customer segments for better target marketing associated with promotional discounts and seamlessly manage subscription-based services. With this flexibility, you can offer various pricing to your customers and bill accurately.

 – Internationalization – Language and Currency Support

For B2B companies, it is essential to be able to support the international base of clients. The complex billing system contains functionality for full internationalization, from multi-language, multi-currency, and localization support to setting up clients in any country. Hence, generate invoices in your clients’ specific languages, with full support for different currencies. Apply the right tax rates and manage international transactions seamlessly.

EarnBill: A perfect complex billing model capable of handling B2B complex billing processes.

EarnBill has many complexities related to billing for complex pricing models, large product catalogs, and complex terms of payment. Together with a powerful complex billing system, B2B companies can improve their complex billing process, ensuring accuracy, compliance, and efficiency of the business process