Optimising your revenue management function will help you put your business on stronger footing.

The fact that economic conditions are tricky is not in dispute. In today’s times, Australian businesses are required to contend with a slew of challenges, including inflation, geo-political uncertainty and volatile global trading conditions.

Unfortunately, a growing number are finding they’re unequal to the fight. Business insolvencies in this country are on the up and up: according to ASIC data, over 7400 local companies entered external administration in the first half of FY2025. That’s a 47 per cent increase on the previous year and there’s little sign of the trend reversing, in the short term, at least.

Against this gloomy backdrop, identifying ways to contain costs and become more efficient is an imperative for every business that doesn’t want to find itself out of business.

Exploring the advantages of automated billing

Optimising the revenue management function is one of those ways. Typically, this entails adopting automation technology – replacing manual or semi-manual systems with a cloud-based solution that offers flexible quote-to-cash lifecycle support for whatever pricing model or models your organisation has in place.

Ideally, you’ll select one that automates quoting and billing workflows, generates detailed accurate invoices at the end of the period or in real time, offers flexible payment options and combines dunning, collections and payment processing in a single automated solution.

And, if you elect to partner with a premium vendor whose platform connects with your CRM, using data analytics to extract actionable insights which can be used to improve your business should be a straightforward matter.

Here are four benefits embracing billing transformation can deliver for your enterprise.

Increased profitability

Manual or semi-manual systems are very often the source of significant revenue leakage, with research suggesting as much as five per cent of annual revenue can be lost in this way. That’s a direct hit to profitability but one that’s easily reversed by automating your revenue management journey and reducing the opportunity for human error.

Better cash flow

Inaccurate billing and unclear invoices tend to result in slower payments from customers. That can put your cash flow under pressure; potentially forcing your business to rely more heavily on finance facilities to tide it through tight patches.

Serious cash flow issues can leave enterprises unable to meet their financial obligations. This is the major reason for business failure in 82 per cent of cases, according to research from one US bank. Automate your revenue management function and you’ll see the cash come in faster. The average business can expect to reduce payment cycles by 10-20 days on average, depending on the business model and billing complexity.

Changing the way you charge for your goods and services, by giving customers the option to access them on subscription, is another way to smooth and improve cash flow; making it more consistent across the year. With an automated billing platform in place, this is easy to execute, monitor and manage.

Improved customer retention

Trust is hard to earn and easy to lose, as the old saying puts it. Charging customers the wrong amount is a great way to make it disappear – and possibly them too, given research suggests inaccurate billing is a contributor to customer churn.

Automated billing technology can reduce the incidence of errors in your organisation – by as much as 20 per cent in some instances – and enable you to generate invoices that are as detailed and transparent as they are accurate. It’s a smart way to keep more of your customers on the books for longer.

Heightened responsiveness

We live in volatile times. Adjusting your pricing model on the fly can help your business manage inflation and counter the currency fluctuations that could otherwise decimate your profits. Real time billing, whereby customers’ consumption or usage can be recorded and invoiced instantly, gives you the flexibility to do so. It allows you to ensure your enterprise keeps pace with rising costs, while keeping customers in the loop.

Staying competitive and profitable in all sorts of times

While, historically, it’s been viewed as a backroom function, revenue management is anything but. Automating the billing process can help you create a virtuous circle, one which allows you to strengthen financial health and customer relationships simultaneously. During uncertain economic times, it can confer a powerful advantage on your business; helping it to not only survive but thrive.