March - 2016 - Special issue > CXO Insights
Recurring Billing, the Next Inevitable Big Wave to Consume the Indian Businesses
Mridhul Prakash, CEO, BluSynergy
The Indian economy is undergoing a big change in the way consumers/companies interact with businesses. The internet is driving some of these behaviors and convenience is at the heart of some of the changes. New businesses/models are springing up, some of which were unheard of before, or some of which are an online version of the older business models.
Regardless of the business model, during the course of any discussion on the financial health of a company, the topic inevitably goes to the revenue number (or top line) and the bottom line (net profit). While operational efficiencies drive the bottom line figure, the top line is determined by the kind of pricing models utilize. In the context of this article, we will highlight two aspects on the revenue side of a business - billing as a whole and recurring billing as a revenue model.
Billing includes the entire process of calculating the amount to be billed, presentment of the bill to the customer, collection of the amount outstanding from the customer, ensuring that the appropriate customer account is credited with the amount collected and reconciliation. The following are the types of transactions/billings:
One Time: This is the simplest type of transaction where a customer makes a one-time payment to a business in return for a product or service and both parties don't have to worry anymore about the transaction once this is complete.
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