Start to Manage Your Payments Faster With an Automated Billing System


Start to Manage Your Payments Faster With an Automated Billing System

Written by:

MarinaMarketing Specialist


Published on:

Read time:

13 min read


An Automated Billing System: Overview

Have you ever wanted to make your billing processes straightforward and flexible? Perhaps your customer base has recently grown, and now your software lacks specific payment functions? Or maybe your finance department is having a hard time using outdated tools while your customers continue to complain about the speed and security of maintenance?

According to Bottomline, the majority of companies (53%) implement advanced payment solutions for better integration with the core business systems. 26% of respondents are looking to unify several tools into a single solution. While only a few companies (16%) seek an alternative solution because they are unsatisfied with current software.

If you are facing similar problems, you might be losing the potential for growing your business and taking it to the next level. Introducing an automated billing system can address these challenges, increase productivity and efficiency of your company.

Some of the most frequently asked questions in this topic are:

  • What is the automated billing system?
  • What benefits can it bring to companies, regardless of their size?
  • How to choose between out-of-the-box and custom solutions?

We will get you through in this article.

What Is the Automated Billing System?

The automated billing system helps to generate and send bills or invoices without significant human interventions. Clients are charged automatically according to their payment models, discounts, fees, bonuses, and loyalty programs.

Automated solutions successfully replace paper billing systems. They save you hours of reviewing payment documents for accuracy and compliance and prevent manual errors while typing data and adding it to the ERP system. Automated billing is a more robust and advanced option than a simple accounting system. While the latter is used only to record and document financial transactions, the former enables optimizing payment processes and managing daily invoicing.

Advanced automated billing system

The automated billing system as a standalone web or mobile software offers easy maintenance, accessibility, and convenience of online transactions in remote areas. Mobile versions are especially gaining importance and becoming one of the crucial drivers of the global e-invoicing market.

Technavio anticipates average annual growth of 19% in this industry from 2020 to 2024.

Automated software has become extremely popular among companies that work through a subscription or retainer model. For example, companies in the banking, telecommunication, travel, and utility industries often charge clients a recurring amount. The solution is a must-have for any healthcare practice where medical staff fills out thousands of forms and manage loads of paperwork. Medical billing systems can successfully automate invoice processing, tracking claims or underpayments, and compliance ensuring (HIPAA-related). For a transportation company billing software helps to control carrier, vendor, and customer invoices.

Although payment software can vary from industry to industry and from one company to another, some features remain fundamental.

Key Features

  1. Invoice generation. It is the first and foremost function of any billing system. With the help of templates or a variety of customization options, companies can create and deliver invoices directly to their clients. You also can export them if needed in various formats.
  2. Recurring billing. A recurring feature of the billing software can remove your headache from micromanaging outgoing and incoming payments and making unplanned adjustments to clients’ payment plans. You can set up scheduled billing, auto-post, and auto-collect financial documents without paying too much attention to the process. If you want to stay informed about specific actions in the system, make sure your billing platform has a dunning feature.
  3. Automated built-in reminders make it easy for a company's financial department to execute routine tasks. A dunning feature automatically sends two-way notifications for late-payments and declined or expired cards. These follow-ups are less annoying than thousands of calls or emails that seller's managers make otherwise. As a result, workers focus on other tasks while buyers pay their bills. For businesses, it is an opportunity to shorten payment terms and attract new investments.
  4. Third-party integrations. The billing system can easily integrate with the most popular CRM, ERP, and other third-party services. You can gather all information about your products, prices, and customers in one place without any duplicating and further rechecking.
  5. Billing portal access. You can manage access rights in the billing software according to the predefined roles. For example, you can provide limited functionality to various groups of users. Or, on the contrary, you can add unique features to give somebody extensive powers. This feature works well with the company's clients and third parties. Payment plans and outstanding balances may be the only information these users will see.
  6. Data management. An advanced payment solution, the billing system can also serve as a single source of truth (SSOT) in a company. SSOT works as the only place to store all financial documents and other payment-related information. So every time your workers need up-to-date information, they can refer to the one in the automated billing system. This feature allows companies to cut costs on similar solutions and make more informed business decisions.
  7. Reporting. You can make financial reports using built-in tables, diagrams, and charts. Basic billing systems offer simple visualization, whereas customized software makes it more professional.
Automated billing system key features

In the long term, payment solutions help companies to:

  • boost billing operations;
  • optimize overall costs;
  • improve performance;
  • accelerate cash flows;
  • reach greater efficiency;
  • maximize visibility and transparency;
  • improve relationships with clients.

Let's get the lowdown on some benefits you may notice in a shorter period.

How Can a Company Benefit From Automated Billing Systems?

E-invoicing makes financial transactions faster than ever. It can help your employees save time and resources and focus on the company's strategic plans. With total control and transparency, the software helps to minimize operational errors.

According to Deloitte, businesses could save up to 70% in processing costs compared to manual invoice processing by implementing automated billing software.

Working every day with sensitive clients’ data – a tidbit for scammers and cybercriminals – companies are looking for a way to mitigate security risks. Automated billing systems protect data from stealing due to multi-factor authentication and data encryption.

The SENLA team had the experience of developing a system with secure internet payments for a large financial institution. To perform seamless payments and facilitate 3D-Secure verification, we integrated Merchant Plug-In (MPI) into the system. We also developed a hosted payment page to prevent non-compliant merchants from credit card fraud. All these measures allowed the Client’s customers to complete transactions securely. Additionally, we enhanced the platform with notifications, reports, and various payment methods.

Lastly, billing systems provide companies with structured and organized payment insights.

Automated billing system benefits

As you can see, companies greatly benefit from implementing automated payment solutions. However, a potential user may ask: 'Can all businesses introduce e-billing to their workflows? And what are the options for small, medium, and large companies?'

To address these issues, we defined two types of automated billing systems.

Basic Types of Automated Billing Systems

If you are looking for ways to structure billing processes in your company, these are the two options: to buy out-of-the-box software or develop a custom one. Each of them has its pros and cons.

1. Out-of-the-box. Many ready-made options provide basic features for billing and invoicing. Generally, they have an affordable price and short-term setup. You can search for reviews on the internet to see if consumers are happy with the purchase and make a considered decision.

On the other hand, out-of-the-box solutions have a low level of customization and can’t fully meet the requirements of every business. You can try to find niche-oriented billing systems which provide you with extensive opportunities, but it's half-measures. Eventually, it will be hard for a company to boost financial processes and improve overall performance.

Additionally, simple software enables synchronization only with the leading third-party services – CRM, ERP, accounting systems, and customer portals. If you use unpopular or custom solutions, you won’t be able to exchange information between them and the billing system.

Out-of-the-box automated billing systems

2. Custom. A more advanced and complex option is creating custom billing software with the help of in-house or outsourced teams.

As a rule, developed solutions successfully address the typical problems of purchased ones. They provide full functionality by integrating with all existing market solutions and internal company products. You have complete control of all your invoices and bills and can build more reliable connections with your clients. Choosing this automated billing system ensures high scalability and qualified support almost 24/7.

However, you have to be ready to spend much time and working resources on a project while planning, negotiating, controlling, and making adjustments. Based on the technical requirements and the complexity of the future invoicing system, the entire process can last several months.

Custom automated billing systems

The difference between out-of-the-box and custom billing software is drastic. Yet sometimes, choosing the former or the latter is not that obvious. You can take into account the following information.

When to Buy out-of-the-Box Automated Billing System?

1. If you want to “test it till you make it”. It is an excellent opportunity for a company that decided to build its software, but doesn’t know where to start. You can search for several existing solutions, choose one or two and make a test run. Find out what you like about them and what you don't. How can they be improved? Maybe there is something you want to obliterate? Take your time and try engaging as many stakeholders as possible to gather opinions.

2. If you want to start instantly. If your investors or lenders are craving early success, you can install the ready-made software. It is easy to use due to its simple functionality and lack of training. Anyway, not all your employees and clients will be happy to relearn when you decide to go for a custom billing system, so it’s better to think twice.

3. If you are a small company, you can use ready-made apps for organizing and automating your invoicing processes. A centralized database with client records, recurring billing, subscription management, reporting, and fraud detection are must-have features in this case. On the other hand, a small but ambitious company with quickly growing activities is likely to choose another option of developing custom automated billing software.

Reasons for buying automated billing systems

When to Build Your Automated Billing System?

1. If you have a large customer base. The basic software can’t meet the needs of a company that processes large amounts of financial information. Developing your billing solution can help to handle a complex system of discounts and fees, manage clients’ accounts in different countries and deliver a top-notch customer experience.

2. If you have a wide range of products or services. The trend of personalization is getting popular in every industry. Companies pay more attention to their clients and offer tailored solutions or services, fulfilling every need and desire. As a result, the more comprehensive the product range, the more complicated business and financial operations are. Facing the dilemma of hiring more workers to process more payments or developing a single powerful tool, we recommend choosing the latter.

3. If you need unique features that existing applications lack. Entering global markets, companies can fail due to the lack of the required languages, currencies, and payment methods in their billing software. The willingness to remove dependence on third parties or enhance safety can be another reason for applying for financial software development services.

For one of the SENLA’s clients, the reason to switch to a new mobile banking application was simple. They had an app with limited functionality and legacy technologies that were impossible to expand. Our team made a replacement for the outdated system and included unique features like making payments in various categories and paying fines. A web version created for the customers enabled them to arrange money transfers and manage cards, accounts, loans, and deposits.

4. If you are a large company. Like people can be described “as you are what you eat”, companies are “what business products they use”. Advanced financial software solutions can help you perform better tracking and billing and build stronger relationships with your clients.

Reasons for developing automated billing systems

Keep in mind that the success of any billing system project depends on finding first-class specialists to assist you.

These are just the tips you can use to make the right decision when choosing out-of-the-box or custom billing systems. Every company has its own business goals, strategies, and operations. So, opt for ready-made options if you have limited budgets or time for training and setup. If you lack unique functionality or existing solutions don’t satisfy your needs, turn to qualified developers.

Automated Billing Systems: Final Thoughts

Automated billing systems are becoming an integral part of any business's large-scale digital transformation strategy. The competent introduction of e-invoicing can result in:

  • carrying out recurring payments smoothly and safely;
  • having standardized dunning management;
  • focusing on strategic elements rather than tactical ones;
  • encompassing multiple tools in one place;
  • shortening the company's payment terms;
  • building stronger relationships with clients.

If you think of implementing an automated billing system, SENLA will be happy to help. We have versatile experience in developing financial software solutions for all types of businesses and complexity. Feel free to contact our BD team to get a personal consultation.

Why Senla?

High developer commitment

SENLA software developers are your full-time employees, and they’re as dedicated to your success as your in-house team.

Direct communication

You, your tech lead, or your project manager communicate with the dedicated development team directly. No middlemen, no miscommunication.

Predictable costs

You pay your developers’ salaries and a flat monthly fee for our services.


Change team size with only one month’s notice. Request advanced IT security. Travel to our offices to work alongside your software developers or bring them over to your headquarters.

Frequently Asked Questions

I'm only looking to find a team asap. Can you help?

Sure! We can deploy a team within 5-10 business days.

What if I want to scale a team to 15 people?

We have 650+ top-caliber experts on staff, so be sure you will have something to choose from. We also replace people in big teams in case of sick leaves or vacations to ensure delivery.

We want developers with Agile experience. Do you have them?

Of course! We have more than 5000 mandays of development under all actual project management methodologies.

Request an offer

More than seven hundred technical experts are ready to work

Contact info

Help me with:optional