Everything I know about building billing systems

In no particular order - based on hard earned real life experience

1. Proration & Leftovers: The Slice of Life 🍰

Deciding on proration is like slicing a cake at a party where everyone shows up at different times. Upgrading? Maybe they get a bigger slice this time. Downgrading? Perhaps a smaller slice, but how small? And if someone decides to leave the party early, do you offer them a doggy bag (refund) or just a voucher for the next party (credit)? It’s all about finding that sweet spot where everyone feels they’ve got their fair share of the cake.

2. Complex Customer Family Trees: The Corporate Soap Opera 📺

Imagine your business relationships as a soap opera, where every company has its family tree, complete with subsidiaries, partners, and complicated relationships. Just when you think you’ve figured out who’s who and who pays for what, a company merges or moves, throwing your billing into a plot twist worthy of daytime TV. It’s like trying to solve a family mystery, where the answer changes with every episode.

3. Date Dilemmas: Time Travels and Calendar Conundrums 🕰️

Scheduling billing dates feels like trying to organize a time travel expedition. Do you set the DeLorean to every 30 days, risking a collision with February’s lack of days? Or do you opt for the same date each month and wrestle with anniversaries that don’t exist in leap years? And let’s not even start on time zones, which can make today your tomorrow. It’s like planning a party in a time warp – exciting but complicated.

4. Invoice Formatting: The Global Gallery Exhibit 🖼

Once you step into international waters, invoice formatting becomes an art exhibit with a theme for each country. It’s no longer just about getting the numbers right; it’s about presenting them in a way that resonates with the local culture, complies with local laws, and still makes sense back at headquarters. Imagine trying to paint a picture that needs to make sense to someone from Italy, India, and Illinois, all at the same time.

5. Tax Handling: The Roller Coaster Ride 🎢

If you thought amusement park rides were thrilling, wait till you deal with global tax laws. Every country has its twists, turns, loops, and drops, and just when you think you’ve mastered them, they change. It’s like being on a roller coaster in the dark – you never know what’s coming next, but you have to keep your arms and legs inside the vehicle and face forward with a smile.

6. Idempotency: The Magic Spell Against Double Trouble ✨

Avoiding double charges with idempotency is like casting a protective spell over your billing system. Each request to charge becomes a unique magic incantation, ensuring that no matter how many times you repeat it, the universe only listens once. It’s like telling a genie your wish but making sure he can’t pretend he didn’t hear you the first four times.

7. Custom Deals: The Adventure Quest 🗺

Navigating through custom deals is like embarking on an adventure quest where each contract is a unique challenge, complete with hidden traps (unforeseen requirements) and treasure chests (unexpected gains). Your map? A complex web of agreements that constantly evolves. It’s a thrilling journey, but one where vigilance is your best companion.

8. Human Error: The Blooper Reel 🎬

In the grand movie of your business, human errors are the bloopers. They’re inevitable, often funny in retrospect, but they need fixing all the same. Whether it’s a customer entering their email wrong or your team setting up an account incorrectly, each mistake is a take that didn’t go as planned. The goal? Keep the bloopers to a minimum and always be ready for a retake.

9. Usage Metering: The Buffet Strategy 🍣

Determining usage can be akin to strategizing at a buffet. Some go for the all-you-can-eat approach, while others are more à la carte. You have to decide how to measure what’s consumed – by the plate, by the pound, or perhaps the time spent at the table. It’s a culinary challenge in the world of billing, where the menu items (services) are as varied as the customers’ appetites.

10. Payment Collection & The Drama of Churn: The Teleseries Finale Cliffhanger 🌄

The saga of payment collection and handling churn is like the finale of your favorite teleseries, complete with cliffhangers. Will the hero (customer) overcome the obstacles (payments) to return next season (renew their subscription), or will they walk away into the sunset (churn)? Handling chargebacks is like dealing with plot twists where the audience (your finance team) has to decide quickly whether to cancel the character (terminate the account), put them on a break (suspend), or make a grand gesture to win them back (issue a refund). It’s a rollercoaster of emotions, strategies, and keeping your viewers hooked for the next episode.

11. Pausing/Resuming Subscriptions: The Remote Control Power Struggle 🔁

Giving subscribers the power to pause and resume their subscription is like handing them the remote control during a season binge. It sounds empowering, but you’re also at the mercy of their whims. Will they pause at a cliffhanger, only to resume months later and demand to be caught up instantly? Or will they play and pause so frequently that keeping track feels like watching a tennis match? The key is to provide flexibility while subtly guiding them towards the “play” button as often as possible.

12. Crediting/Refunding: The Generosity Game Show 💖

Deciding how to handle refunds and credits is like hosting a game show where everyone’s a winner, but the prizes vary. Do you go big and offer a full refund, no questions asked, making them feel like they hit the jackpot? Or do you opt for a more strategic approach, doling out store credits and hoping they come back for more? It’s a balancing act between generosity and business savvy, where the goal is to make everyone feel like they’ve come out ahead.

13. Revenue Recognition: The Enigma Machine 🔍

Unraveling the mysteries of revenue recognition is like trying to decode an enigma. It’s a complex puzzle where each piece represents a different rule, guideline, or exception. If you’re one of the rare minds that can navigate this labyrinth effortlessly, consider yourself a codebreaker of the highest order. It’s not just about following the money; it’s about understanding its story, from the moment it enters your realm until it’s safely accounted for in your financial records.

14. Selective Pricing Changes: The Secret Menu 🤫

Implementing selective pricing changes is like having a secret menu that only certain customers know about. It’s a way to offer special deals without upsetting the regular pricing structure. Managing this requires finesse, ensuring that your long-term customers feel valued and new ones are enticed, all while maintaining a sense of fairness. It’s like being a magician who never reveals his tricks, keeping everyone guessing and delighted.

15. Multicurrency Madness: The Currency Concerto 🎶

Dealing with multiple currencies in billing is like conducting an orchestra where each instrument plays in a different currency. The music (transactions) must flow harmoniously, despite the complexity of exchange rates, conversion fees, and the financial nuances of each country. It’s a performance that demands attention to detail and a deep understanding of the global financial symphony, making sure every note (transaction) hits the right pitch (value).

16. Automated Reminders: The Friendly Nudge Bot 🤖

Setting up automated reminders for billing is like deploying a friendly robot that gently nudges your customers about their upcoming or overdue payments. It’s all about timing, tone, and tact. The goal is to remind them without annoying them, using a mix of humor, courtesy, and just the right amount of persistence. Think of it as a digital butler who’s always polite, never pushy, and can deftly remind your customers that it’s time to renew their subscription or settle their bill, ensuring that the lights stay on and the action keeps going.

There we have it, a personal, detailed and flavorful dive into the billing universe, where every challenge is an opportunity to engage, solve puzzles, and keep the show running smoothly. 🚀