Billing processes are becoming more and more detailed, complex, and demanding. Especially in the area of recurring billing, companies have to cope with veritable masses of data. If, for example, subscription models are offered that are billed on a monthly basis, thousands of statements usually have to be created and transmitted each month.
In addition, companies must ensure the accuracy of their billing processes. From a sales tax perspective alone, there are strict requirements for a proper invoice. Numerous questions must therefore be clarified for an invoice:
- Which tax rate should be applied? The standard tax rate or the reduced tax rate?
- Which product or service must be named on the invoice?
- What payment is to be shown?
The issue becomes even more complex if companies also offer their subscriptions abroad. In this case, the reverse charge procedure, different tax rates or even other currencies may come into question.
And in addition to the many tax issues and challenges, other legal peculiarities, such as retention requirements, the GoBD or the DSGVO, must also be taken into account.
The result of these challenges is that subscription management is almost impossible for companies to manage manually. An enterprise billing solution can not only automate the process but also implement it in a legally compliant manner. This allows subscription providers to focus on their core competencies – their day-to-day business.
