Billings is the amount of money you’re currently owed and yet to collect.
And if you run a SaaS business, it’s an essential element of tracking revenue.
There may be several billings amounts over the course of a contract, or it could all be billed at one time.
For example, if you’re rendered a service in January worth $10,000, where payment is due quarterly, the total billings for January would be $2,500.
Why it matters
Prevent loss of revenue
SaaS businesses using manual billing processes lose revenue due to errors and other leakages. The inefficiencies typical in manual billing range from delayed payment requests to lack of a system for reminding customers about upcoming payments to higher chances of fraud by unscrupulous customers.
Gain insight
Accurate reporting and insights are essential for the success of a SaaS business. With a reliable SaaS billings system, business owners can review and compare revenue inflows and outflows, track customer activity, access recurring revenue analytics, and many other metrics