Automating Business Central Dynamics 365 Revenue Recognition

Table of Contents

1. The problem with manual billing and payment collection
2. Why autopay is essential for recurring billing
3. Revenue recognition made easy with Business Central
4. The power of automation: recurring billing + Autopay
5. Leveraging automation for your billing and AR

Key Takeaways

• Automating subscription billing with Microsoft Dynamics 365 Business Central and Paystand Autopay fully streamlines billing and payment collection.
• Without Autopay, businesses often face challenges like missed payments, increased administrative work, and disrupted cash flow.
• Paystand’s Autopay feature ensures payments are made on time, reduces AR workload, and enhances the customer experience.
• Dynamics 365 simplifies revenue recognition by automating compliance with accounting standards like ASC 606.
• Combining recurring billing with Autopay improves cash flow, ensures accuracy, and scales efficiently as your business grows.

Billing can quickly become a complex and time-consuming task for businesses relying on subscription-based revenue. While Microsoft Dynamics 365 Business Central simplifies the recurring billing process with its new Subscription Billing and Revenue Recognition functionality, one critical element is often overlooked: automating payment collection.

Without automation, businesses are left chasing payments, leading to cash flow disruptions, missed deadlines, and an overwhelming accounts receivable (AR) process. In this blog, we’ll explore how combining Recurring Billing in Business Central with Paystand’s Autopay capabilities creates a true "set it and forget it" system for billing and AR collection. Plus, we’ll show you why recurring billing without Autopay is like an ice cream sundae without sprinkles—it’s good, but it could be so much better.

The Problem with Manual Billing and Payment Collection

Even with recurring billing, many businesses still face a significant problem: manual payment collection. This creates several pain points, including:

• Missed Payments: Customers forget to log in and pay, leading to overdue invoices and delayed cash flow.
• Increased Administrative Overhead: Your AR team spends valuable time following up on missed payments and processing transactions manually.
• Cash Flow Disruptions: Unpredictable payment schedules can make financial forecasting and planning difficult, potentially hindering business growth.

Business Central’s new subscription billing feature is a great start for automating the invoicing process. But to fully unlock the power of automation, you need a solution that also automates payment collection—and that’s where Paystand’s Autopay comes in.

Why Autopay is Essential for Recurring Billing

Recurring billing without Autopay is like an ice cream sundae without sprinkles—it’s missing that extra something that makes it truly special. Sure, you can generate recurring invoices automatically, but without automating the payment process, you’re still relying on customers to remember to log in and pay. This often results in delayed payments, missed invoices, and unhappy customers.

Paystand’s Autopay fills that gap. By enabling customers to securely store their payment methods, Autopay ensures that invoices are paid automatically when due, with no manual intervention required. This results in:

• Faster Payments: Payments are processed on time, every time, improving your cash flow and reducing the risk of late payments.
• Reduced AR Workload: Your AR team no longer has to manually follow up with customers, freeing them up for more strategic tasks.
• Improved Customer Experience: Customers enjoy the convenience of automatic payments, eliminating the friction of manual payment processes.

With Autopay, your recurring billing process is complete—automated from invoice creation to payment collection.

Revenue Recognition Made Easy with Business Central

Revenue recognition is a key part of any subscription-based business, and Microsoft Dynamics 365 Business Central simplifies this often complex task by automating revenue recognition according to predefined rules. Instead of recognizing all revenue at once, the system ensures that income is recognized over the service delivery period, in line with accounting standards like ASC 606.

For example, if a customer subscribes to a service for 12 months, Business Central will automatically recognize the revenue over that period, ensuring compliance and accurate financial reporting. This simplifies your accounting and improves your ability to forecast and plan for future revenue.

However, accurate revenue recognition depends on timely payment collection, and this is where the full power of automation—recurring billing plus Autopay—comes into play.

The Power of Automation: Recurring Billing + Autopay

When you combine Business Central’s subscription billing with Paystand’s Autopay, you unlock the true potential of automation in your billing and AR processes. This dynamic duo offers a wide range of benefits:

• Complete Automation: Both your billing and AR collection are fully automated, eliminating the need for manual follow-ups or data entry
• Improved Cash Flow: Autopay collects payments on time, reducing DSO (Days Sales Outstanding) and giving you a more predictable cash flow
• Accurate Revenue Recognition: Timely payments ensure that revenue is recognized accurately over time, aligning with your service delivery
• Scalability: As your business grows, this automated system scales effortlessly, reducing the administrative burden often accompanying growth
• Enhanced Customer Experience: By offering Autopay, you make the payment process frictionless for your customers, increasing satisfaction and loyalty

In fact, businesses using Paystand’s Autopay have reported up to a 40% reduction in DSO, which gives them faster access to their working capital and reduces the risk of late payments.

Sprinkle Automation on Your Billing and AR

If you’re using Microsoft Dynamics 365 Business Central’s subscription billing and revenue recognition features, it’s time to take the next step and integrate Paystand’s Autopay. By automating both your billing and payment collection, you’ll enjoy the benefits of faster payments, reduced AR workload, and improved revenue recognition accuracy.

Don’t settle for just a sundae—add the sprinkles that make it complete. Automate your billing and AR process with Paystand’s Autopay and set your business up for growth, scalability, and success.

Ready to automate your billing and AR collection? Schedule a demo today and see how Paystand can help you create a frictionless, automated system that works for your business.