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Start Hiring For FreeManaging subscriptions can be frustrating for any business using accounting software like Xero.
Luckily, Xero offers powerful tools to automate recurring billing and simplify subscription management.
In this guide, you'll learn key techniques for taking control of subscriptions in Xero - from changing plans to preventing failed payments. Discover how to leverage automation for invoices, payments, and analytics while optimizing integrations with subscription management platforms.
Managing subscriptions and recurring billing can be a major pain point for many businesses. However, with the right tools, it doesn't have to be.
Xero provides a robust subscription management system that helps automate many of the tedious tasks associated with tracking and billing recurring payments. Here are some of the key benefits of using Xero for subscription management:
Automated Billing: Xero enables you to easily set up recurring invoices that go out automatically on whatever schedule you define - weekly, monthly, annually, etc. This saves you time from having to manually generate invoices every billing cycle.
Multiple Payment Options: Customers can pay their recurring Xero invoices by credit card, bank transfer or PayPal. Xero will store their payment information to streamline future transactions.
Subscription Tracking: You have clear visibility into which customers have active or past due subscriptions within Xero. This helps ensure prompt payment and simplified subscription management.
Integration with Other Apps: Xero offers hundreds of integrations with other software solutions. This allows you to connect Xero to other tools you use to fully automate your workflows around subscription management and billing.
By leveraging Xero's capabilities for subscriptions and recurring payments, you can simplify operations, eliminate manual processes, and improve cash flow. The power of automated billing and tracking through cloud technology makes managing subscriptions easier than ever.
To take over a subscription in Xero, the following steps must be taken:
The current subscriber needs to initiate a subscription transfer from within their Xero account. They can find this option under the "My Settings" section.
An email invitation to take over the subscription will be sent to the new subscriber. This email will contain a link that must be clicked to accept the transfer.
Upon clicking the link, the new subscriber will be asked to either sign in to their existing Xero account or create a new Xero account.
The new subscriber can then choose to keep the same subscription plan or select a different pricing plan. However, if transferring a free trial subscription, it must remain a free trial until after the transfer is complete.
Once the new subscriber accepts and completes the transfer request, they will have full control over the subscription billing and account details from that point forward.
The key things to note are that the current subscriber must initiate the transfer, the new subscriber must accept the transfer via email link, and billing/account control gets transferred upon completion. So as long as both parties complete their necessary steps in the process, switching subscription ownership can be a smooth transition.
To change your Xero subscription plan:
The change to your new subscription plan will take effect at the start of your next billing period. If you have prepaid for any unused services, you will receive a credit that gets applied to your next invoice.
Downgrading your plan can only be done at the end of your current billing period. Upgrades take effect immediately. Make sure to review all features of the new plan before confirming any changes.
If you need any help changing plans or have questions about billing, you can contact Xero support directly from within your account. The support team is available to assist you.
To view your previous subscription invoices in Xero:
This will display all the invoices associated with that particular billing account. You can review charges, download PDF copies of the invoices, check billing details, and more.
Key things to note:
Managing subscriptions and billing in Xero can feel overwhelming initially. But with some guidance on where to access key information, you can easily stay on top of your recurring SaaS expenses.
This section covers how to configure recurring invoices for automatic billing in Xero, including frequency, start/end dates, and attaching subscribers, to streamline the manage subscriptions process.
To start using recurring invoices in Xero:
This will unlock the ability to create recurring invoice templates that can be automatically sent out on set schedules.
Follow these steps to build a recurring invoice template:
This will save the billing details as a template for automated recurring invoicing.
To connect recurring invoices to customer contacts:
The recurring invoice will now be attached to the customer contact on the defined billing frequency.
Xero allows you to customize billing details:
Set up billing details during recurring invoice template creation to fit your various subscription services and customer contracts.
When integrating a subscription management solution with Xero, it's important to choose a platform that aligns with your business needs. Key criteria to consider include:
Compatibility with Xero: Ensure the software easily connects with Xero via API or other integration methods. This enables smooth data flows between the systems.
Subscription plan flexibility: Choose a system that supports your diverse subscription offerings, whether one-time purchases, free trials, recurring payments, usage-based billing, etc.
Automation capabilities: Opt for a subscription platform that can automate processes like recurring billing, dunning, renewals, and subscription status updates. This saves considerable manual effort.
Customizability: Seek out solutions that enable custom packages, billing schedules, subscriber communication rules, and other flexible options tailored to your subscribers.
Reporting and analytics: Robust reporting functionality provides visibility into subscriber metrics to optimize offers.
Once you've selected a compatible subscription management platform, proper integration configuration is key for managing subscriptions in Xero:
Set up API connections between the software and Xero to enable real-time data synchronization. Work with developer teams on both sides to ensure smooth integration.
Map relevant data fields like customer details, product info, payment data, etc. to share key details across both systems.
Configure business rules and workflows for handling processes like recurring billing, failed payments, subscription status changes, and renewals based on your needs.
Test thoroughly before launch to validate correct data flows, automated processes, and reporting. Fix any issues before subscribers begin signing up.
Smooth data synchronization between Xero and integrated subscription tools is critical for subscription businesses:
Customer data like contacts, billing details, and account history should correctly flow from Xero to subscription platforms to eliminate duplicate data entry.
Subscription orders placed in the subscription tool should sync to Xero in real-time to enable accurate financial reporting.
Payment information like automatic recurring billing and failed payment details should update in Xero for revenue projection purposes.
Subscription status changes like upgrades, downgrades, cancellations, and renewals must sync across both systems to stay aligned.
Proactively monitor data integration to ensure correct synchronization. Troubleshoot and fix any lags or errors immediately.
Integration between Xero and subscription management software also enables automating subscriber communication for superior customer experience:
Setting up rules and workflows based on subscription status changes is key for automated subscriber communication. This saves considerable manual effort while delighting customers.
Test notification flows thoroughly before launch. Monitor subscriber reactions and fine-tune as needed to optimize customer satisfaction.
Automating subscription billing can streamline cash flow for businesses relying on recurring revenue models. Xero provides several features to easily set up and manage automatic customer payments.
To enable automated billing in Xero, you first need to integrate a payment gateway that supports recurring payments, such as Stripe or PayPal. Here are the steps:
Once connected, Xero can automatically charge customer bank accounts or cards on file when invoices are due.
Xero allows creating automated payment reminders to notify customers ahead of upcoming charges:
Setting up reminders reduces late and missed payments from forgetful subscribers.
Despite automated reminders, some automatic payments may still fail initially. Xero provides tools to handle these scenarios:
Configuring failure workflows promotes subscriber retention by avoiding disruption.
Under Reports > Aged Receivables, Xero offers the "Payments Collected" report to view:
Monitoring these metrics helps maximize the effectiveness of automated billing in Xero.
Using Xero's cloud-based reporting provides valuable insights into subscription performance and recurring billing metrics.
Xero enables tracking income from subscriptions over custom date ranges. This empowers making data-driven decisions about subscription offerings.
By leveraging Xero's reporting, businesses gain transparency into the health of their subscription programs.
Failed payment reports in Xero provide actionable insights by revealing problematic subscriptions:
Reviewing failed payments regularly safeguards revenue and enables optimization.
Xero customer statements serve as detailed records of all subscription activity:
Statements facilitate transparency into subscription transactions.
Benchmarking against industry standards highlights areas for improvement:
Benchmarking provides context to gauge subscription success.
By fully utilizing Xero's reporting tools, businesses obtain granular visibility into the performance of subscriptions and recurring billing, enabling data-driven decision making.
Managing subscriptions and recurring billing is crucial for modern businesses relying on subscription revenue models. Xero provides powerful tools to automate this process and optimize cash flow.
Here are the key takeaways:
Use Xero's repeating invoices feature to set up automated billing based on custom schedules. This saves time over manual invoicing.
Connect Xero to payment gateways like Stripe to instantly charge customers when invoices are generated. This reduces late and missed payments.
Leverage Xero's reports to gain visibility into subscription performance. Identify high-value subscribers to retain and struggling ones to support.
Integrate with subscription management software like Chargebee for advanced capabilities like metered billing, coupons/discounts, and subscription portals.
Automating recurring billing through integrated systems gives finance teams superpowers to manage complex subscriber relationships while eliminating tedious manual processes. Reduce churn, maximize lifetime value, and let Xero handle the busywork so you can focus strategically on nurturing customer relationships. That's the formula for subscription success.
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