{"id":12477,"date":"2022-06-24T10:00:00","date_gmt":"2022-06-24T09:00:00","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=12477"},"modified":"2025-05-07T14:55:30","modified_gmt":"2025-05-07T13:55:30","slug":"managing-finances-subscription-business","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/managing-finances-subscription-business\/","title":{"rendered":"10 tips for managing finances as a subscription business"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\t10 tips for managing finances as a subscription business\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2022-06-24T10:00:00+01:00\">24 June, 2022<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"10 tips for managing finances as a subscription business\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-gb\/blog\/managing-finances-subscription-business\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n<\/header>\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-gb\/blog\/author\/asavinwattanajantra\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/03\/Asavin-350x350.jpg\" class=\"entry-author__image\" alt=\"Asavin\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/03\/Asavin-350x350.jpg 350w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/03\/Asavin-768x768.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/03\/Asavin-810x810.jpg 810w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/03\/Asavin.jpg 1000w\" sizes=\"auto, (max-width: 40px) 100vw, 40px\" \/>\t\t\t\t<span class=\"entry-author__name\">Asavin Wattanajantra<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p class=\"\">Curious about the subscription economy?<\/p>\n\n\n\n<p class=\"\">Here\u2019s how it works: your business takes recurring payments every month or year from customers so they can continue using (or receiving) your product or service.<\/p>\n\n\n\n<p class=\"\">Recurring billing is where you\u2019ve convinced a customer to spend money with you on a contract basis.<\/p>\n\n\n\n<p class=\"\">This idea isn\u2019t new\u2014think of subscriptions to magazines, where you paid upfront for guaranteed deliveries in your mailbox.<\/p>\n\n\n\n<p class=\"\">In this article, we dive into the details of managing finances as a subscription business.<\/p>\n\n\n\n<p class=\"\">Here&#8217;s what we cover:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><a href=\"#software\">Software as a Service (SaaS) subscriptions<\/a><\/li><li><a href=\"#setting\">Setting up subscription billing<\/a><\/li><li><a href=\"#managing\">Managing subscriptions? 10 things to consider<\/a><\/li><li><a href=\"#is\">Is subscription billing for you?<\/a><\/li><\/ul>\n\n\n\n<p class=\"\"><div class=\"single-cta\">\n\t<a\n\t\tclass=\"button button--primary gate-35d6d443-bf72-44ac-ac7a-fdee0fceb92a\"\n\t\trole=\"button\"\n\t\tdata-button-location=\"content_area\"\n\t\thref=\"#gate-35d6d443-bf72-44ac-ac7a-fdee0fceb92a\"\n\t>Download your free copy of Why Sage Intacct is number one in B2B subscription management<\/a>\n<\/div>\n<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"software\">Software as a Service (SaaS) subscriptions<\/h2>\n\n\n\n<p class=\"\">Today, we associate subscriptions with recurring payments for the use of cloud services. <\/p>\n\n\n\n<p class=\"\">Think of businesses such as Amazon, Spotify or Netflix charging you for a service such as Amazon Prime, non-advertorial music streaming or streaming TV respectively.<\/p>\n\n\n\n<p class=\"\">Why are people willing to pay?<\/p>\n\n\n\n<p class=\"\">Fees are affordable, it\u2019s convenient and you can easily customise the experience.<\/p>\n\n\n\n<p class=\"\">In the business to business (B2B) sector, offering subscription commerce is a way you can offer customers products or services they want to use and replace over a predictable period, without them having to shell out one big lump sum.<\/p>\n\n\n\n<p class=\"\">With a field service agreement, you can provide regular maintenance and cover for unforeseen problems, which gives reassurance customers are willing to pay for.<\/p>\n\n\n\n<p class=\"\">The subscription business model is here to stay for modern software companies. <\/p>\n\n\n\n<p class=\"\">It\u2019s a very appealing option because if your customer sees value in your business, they\u2019ll continue to pay for it. The longer the customer stays with you, the more valuable they will be\u2014that compounding growth is very compelling.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"setting\">Setting up subscription billing<\/h2>\n\n\n\n<p class=\"\">If you think your business warrants charging customers repeatedly as part of a subscription, then it makes sense to go for it. However, it\u2019s not as easy as taking online payments and setting up an e-commerce website.<\/p>\n\n\n\n<p class=\"\">Setting up your business for subscription <a href=\"https:\/\/www.sage.com\/en-gb\/sage-business-cloud\/intacct\/billing\/\">billing <\/a>takes work. <\/p>\n\n\n\n<p class=\"\">It may involve you implementing new technology, as you\u2019ll have to set customers up with contracts, automating processes such as sales, revenue management, and invoicing.<\/p>\n\n\n\n<p class=\"\">In addition, you may need to report and audit your finances, whether that\u2019s for the benefit of stakeholders such as investors or making sure you\u2019re doing things the right way through compliance. <\/p>\n\n\n\n<p class=\"\">Reporting and analysis will be much easier if you\u2019re using <a href=\"https:\/\/www.sage.com\/en-gb\/sage-business-cloud\/intacct\/industries\/subscription-management-software\/\">modern cloud financial software<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"managing\">Managing subscriptions? 10 things to consider<\/h2>\n\n\n\n<p class=\"\">So, what do you need to do to manage subscriptions the right way? Start with these&#8230;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1.&nbsp;Automate everything<\/h3>\n\n\n\n<p class=\"\">Imagine managing contracts and subscriptions with spreadsheets or basic accounting software. Dealing with upsells, down sells, renewals and cancellations\u2014it\u2019s going to be a massive headache.<\/p>\n\n\n\n<p class=\"\">Automation is an absolute necessity to manage billing and revenue within a growing SaaS business.<\/p>\n\n\n\n<p class=\"\">As well as making your team\u2019s job a lot easier, it will support compliance requirements and provide you with instant forecasting for revenue, billing and cash.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Connect sales and accounting<\/h3>\n\n\n\n<p class=\"\">If your processes are manual, your sales and accounting departments will need to connect by re-keying data. <\/p>\n\n\n\n<p class=\"\">Imagine how long that will take and how this tedious work could negatively affect your sales and finance people.<\/p>\n\n\n\n<p class=\"\">For a modern SaaS subscription business, you need to connect sales and accounting with one subscription system of record that goes from the first sales quote to the general ledger, reporting and forecasting.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3.&nbsp;Get compliance right<\/h3>\n\n\n\n<p class=\"\">Compliance is crucial. <\/p>\n\n\n\n<p class=\"\">It\u2019ll protect you and your customers, and bring security to your infrastructure, as well as draw confidence in your brand.<\/p>\n\n\n\n<p class=\"\">When managing subscriptions, make sure you are <a href=\"https:\/\/www.sage.com\/en-us\/sage-business-cloud\/intacct\/\r\">ASC 606 (in the US) and IFRS-15 (internationally) compliant,<\/a> which requires you to prove a solid accounting baseline to report, bill and recognise revenue.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4.&nbsp;One-click customer contracts<\/h3>\n\n\n\n<p class=\"\">Within a subscription-based business, your contract with a customer is a living and breathing representation of your financial relationship for as long as they are with you. <\/p>\n\n\n\n<p class=\"\">Throughout their time with your business, this contract may change.<\/p>\n\n\n\n<p class=\"\">You need software that updates any changes to the contract within all the relevant financial records. <\/p>\n\n\n\n<p class=\"\">Looking in detail at a customer\u2019s contract, you don\u2019t want to look at different reports, spreadsheets, or a separate customer management system\u2014you need it a click away.<\/p>\n\n\n\n<p class=\"\"><div class=\"single-cta\">\n\t<a\n\t\tclass=\"button button--primary gate-35d6d443-bf72-44ac-ac7a-fdee0fceb92a\"\n\t\trole=\"button\"\n\t\tdata-button-location=\"content_area\"\n\t\thref=\"#gate-35d6d443-bf72-44ac-ac7a-fdee0fceb92a\"\n\t>Download your free copy of Why Sage Intacct is number one in B2B subscription management<\/a>\n<\/div>\n<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5.&nbsp;Change customer contracts easily<\/h3>\n\n\n\n<p class=\"\">It\u2019s not only hard to find the information you\u2019re looking for in a contract. Making manual changes can be painful, such as amendments, cancellations, holds, resumes, or renewals.<\/p>\n\n\n\n<p class=\"\">Look at deep automation to cut manual processes and make changes required for accurate revenue and billing.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">6.&nbsp;Review contracts with a compliance checklist<\/h3>\n\n\n\n<p class=\"\">Do periodic reviews to deliver and honour contract obligations with your customers.<\/p>\n\n\n\n<p class=\"\">Create a checklist of tasks. <\/p>\n\n\n\n<p class=\"\">When you complete each checklist item, any user with the proper permissions can enter the relevant completion detail in the contract, providing a solid audit trail.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">7. Adopt a continuous close model<\/h3>\n\n\n\n<p class=\"\">With a subscription business, banish the idea of month-end closes. <\/p>\n\n\n\n<p class=\"\">Adopt a <a href=\"https:\/\/www.sage.com\/en-gb\/blog\/continuous-close-real-time-numbers\/\">continuous or rolling close<\/a>, where you keep accounts up to date daily, supplying financial information at any time during the monthly reporting.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">8.&nbsp;Unify your billing<\/h3>\n\n\n\n<p class=\"\">As you grow the subscription business, expand what you offer to win new customers and keep existing ones\u2014it\u2019ll allow you to price your product and services higher.<\/p>\n\n\n\n<p class=\"\">Have software to cope with various billing models, such as subscription pricing, usage billing, professional services, and perpetual licensing.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">9.&nbsp;Real-time forecast<\/h3>\n\n\n\n<p class=\"\">Finances of a subscription business can be complex, and the sales and accounting team will need to work with one authentic version of the truth when it comes to billing, revenue, and cash.<\/p>\n\n\n\n<p class=\"\">Look for the ability to automatically generate forecasts, which will help you make decisions such as hiring, product investment, acquisitions and much more.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">10.&nbsp;Use a modern general ledger<\/h3>\n\n\n\n<p class=\"\">Subscription businesses have complex reporting requirements. <\/p>\n\n\n\n<p class=\"\">That means you\u2019ll want a modern ledger solution that can help you meet the challenges of tax, statutory, regulatory and management reporting.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"is\">Is subscription billing for you?<\/h2>\n\n\n\n<p class=\"\">If you\u2019re in a position where a customer is willing to spend recurringly with you for months and even years, then well done\u2014you offer a deep, long-lasting experience that keeps them coming back. <\/p>\n\n\n\n<p class=\"\">But, as we\u2019ve discussed, getting the financial setup right is necessary for you to grow as fast as your potential allows.<\/p>\n\n\n\n<p class=\"\">Hopefully, this article has given you the information you need to start dealing with the financial complexity of a subscription business. There\u2019s more detail in our downloadable guide.<\/p>\n \n<div class=\"single-cta gated-content\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Why Sage Intacct is number one in B2B subscription management<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p><!-- wp:paragraph --><\/p>\n<p class=\"\">Discover how using modern cloud financial software can help you efficiently grow and scale your subscription business. <\/p>\n<p><!-- \/wp:paragraph --><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-35d6d443-bf72-44ac-ac7a-fdee0fceb92a\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Download your free guide<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-740534235-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-740534235-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Join more than 500,000 UK readers and get the best business admin strategies and tactics, as well as actionable advice to help your company thrive, in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-b1a63862-3fa0-4a5e-bb67-c76b88bbc6b8\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Running a subscription business? Here&#8217;s how using tech can help you manage billing and other financial requirements with ease.<\/p>\n","protected":false},"author":356,"featured_media":11431,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"footnotes":""},"categories":[6],"tags":[23,135,159],"business_type":[3],"lilypad":[],"context":[],"industry":[],"persona":[],"imagine_tag":[220,96],"coauthors":[351],"class_list":["post-12477","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","tag-bookkeeping","tag-business-finances","tag-midsized-business","business_type-medium-sized-business"],"sage_meta":{"region":"en-gb","author_name":"Asavin Wattanajantra","featured_image":"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1129489551.jpg","imagine_tags":{"220":"Accountant accounting","96":"Medium businesses"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice UK","distributor_original_site_url":"https:\/\/www.sage.com\/en-gb\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/12477","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/users\/356"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/comments?post=12477"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/12477\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media\/11431"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media?parent=12477"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/categories?post=12477"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/tags?post=12477"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/business_type?post=12477"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/lilypad?post=12477"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/context?post=12477"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/industry?post=12477"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/persona?post=12477"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/imagine_tag?post=12477"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/coauthors?post=12477"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}