The Subscription Economy
Can you handle the future of business? Almost every product and service is available on a subscription basis now, so how can businesses using Xero support this? This article is
Paul Dundas, CEO and Founder, Emersion Paul Dundas is the CEO and Founder of Emersion, a billing automation platform that connects to Xero. He has more than 20 years of experience working in the Telco billing space and has helped hundreds of businesses in simplifying their billing operations.
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s businesses all over the world rapidly move to a subscription model, accountants and bookkeepers need to find ways to support subscription services. When you are using Xero on it’s own this can get complicated, but luckily there is an easy solution. How many subscriptions do you have? The average person subscribes to 9 streaming services (Deloitte 2021). When you add in internet and communications, utilities and software that number skyrockets. It’s no wonder that 70% of business leaders say subscription business models are the way of the future (Global Banking and Finance Review 2021).
probably find the subscription billing functionality lacking. Xero is an incredibly easy to use accounting package that comes with great payroll, accounts payable and accounts receivable functionality, but struggles when it comes to subscription and usage billing. It simply isn’t equipped to handle: • Recurring subscriptions • Usage products (e.g. Voice, Internet, Utilities) • Large customer bases
There are a lot of articles telling us subscription services While you can will soon be the norm set up automatic 70% of business when in reality recurring invoices, they are the norm the functionality leaders say already. Many only works if subscription people buy cars on the products or business models a subscription to services you are are the way of the flatten the costs of selling stay the future. ownership (it’s called same from month to a lease). And practically month. If they change, everything you see online there is manual work or in store can be purchased on involved in updating the invoice a subscription through buy-nowamounts. You’ll still have to send pay-later services like Afterpay the invoices manually, and also and Zip. manually reconcile the accounts with your bank. So what does this mean for your business? This gets old - fast and the reality is that more of your clients will Well... If you use Xero, you’ll want to move to subscription
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models in the future because it’s what their customers are asking for. So how can your business support complex subscription billing models without changing accounting providers? That’s where Emersion comes in Emersion can automate the entire subscription billing process, including collecting and calculating usage (useful for voice and internet services), generating and sending invoices, taking payments and following up with collections notifications. We can support any business model (including wholesalers and francisers), any type of product and service. The best bit - any invoices or transactions in Emersion can be automatically synchronised to Xero, meaning you can still use Xero to manage your clients accounts and have us take care of their billing and service management.
GET STARTED TODAY... Prepare your business for the future with Emersion: emersion.com
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