Quote-to-Cash Software: All You Need to Know

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What is the Quote-to-Cash Process?

What is Quote-to-Cash Software?

Benefits of Quote-to-Cash Software

Top 5 Quote-to-Cash Software Solutions

How to Select the Best Quote-to-Cash Software Solution

FAQ

Conclusion

If you run a B2B SaaS business, you know how difficult it is to maintain accuracy in invoicing and billing, when each customer has a custom contract.

Also, sending custom quotes depending on each new customer’s needs is also challenging and time-consuming.

So what can you do to make things easier?

Well, using a quote-to-cash software solution can help.

Not familiar with the term or not sure if you should invest in a Q2C solution?

Read this in-depth guide to get all the information you need to make a decision and choose the right quote-to-cash software solution.

What is the Quote-to-Cash Process?

The quote-to-cash (Q2C) process includes everything from when a potential customer requests a business for a quote to when they become a client and pay the business.

It usually involves steps like creating a quote, negotiating terms, finalizing a contract, delivering the product or service, sending an invoice, and collecting payment. 

Let’s briefly discuss the steps involved in the quote-to-cash process.

• Configure Price Quote (CPQ): You configure your SaaS product or plan per a client’s needs and provide an official pricing quote.

• Contract Negotiation: Your sales team discusses the contract terms with the client and comes up with a mutually agreed upon contract.

• Contract Creation: The sales team then finalizes an official contract and gets the client to sign it.

• Order Fulfillment: The client uses your SaaS product for a specific period before an invoice can be sent.

• Invoicing: You create an invoice for the services delivered and send it to the client.

• Payment Collection: The client makes the payment and clears the invoice.

• Revenue Recognition: Your SaaS company then recognizes the revenue for the payment received.

A smooth QTC process helps you close deals faster, avoid pricing mistakes, and improve cash flow. The vice-versa is also true.

Using a quote-to-cash software solution can help streamline the financial process and automate many of these steps. Let’s learn more about quote-to-cash software in the next section.

What is Quote-to-Cash Software?

A quote-to-cash software solution helps you complete the various steps involved in the Q2C process.

Instead of handling quotes, contracts, invoices, and payments manually, your sales reps can use a quote-to-cash software solution to automate the process.

A quote-to-cash software solution helps you generate quotes, track approvals, send invoices, and collect payments without hassle.

If you have a SaaS business, then you can use a comprehensive B2B subscription management software solution like Younium. It not only streamlines your Q2C process but also helps with other aspects of managing a B2B subscription business.

Also Read:

• Top Accounts Receivable (AR) Software Solutions
• A Tactical Buyer's Guide for Subscription Management Solutions

Benefits of Quote-to-Cash Software

If you’re not entirely sure if you even need a quote-to-cash software solution, then these benefits of quote-to-cash software might sway your decision.

1. Allows More Financial Control

Quote-to-cash software solutions help you manage your entire sales-to-revenue process more accurately and efficiently. By automating pricing, invoicing, and payment tracking, they reduce errors and ensure the accuracy of all transactions.

Most quote-to-cash software solutions streamline approvals and payment collections to help you maintain tight financial oversight and more financial control.

2. Improves Financial Reporting and Forecasting

Since quote-to-cash software solutions centralize business data, you have a single source of truth for all your financial data. This allows you to quickly access important metrics, draw insights, and create accurate financial reports.

With real-time data on quotes, contracts, and renewals, quote-to-cash software solutions can also make accurate revenue predictions. It helps your finance team anticipate future income, plan budgets, and make informed business decisions.

3. Enables Better Compliance

If you run a B2B SaaS business, you will need to comply with regulations like ASC 606 (US GAAP) and IFRS 15 (international standards) for revenue recognition. 

This is quite a challenge since most rules are not directly applicable for subscription models and you need to make adjustments to stay compliant while still following the general guidelines.

Quote-to-cash software can automate compliance for your business by tracking contract terms, billing schedules, and performance obligations.

4. Helps Save Time and Effort

Quote-to-cash software can automate various processes, such as automatic invoice generation, making them faster and more efficient.

When you don’t need to manually calculate and create invoices or send payment reminders, you can focus on more important things like how to improve your product and customer experience.

By automating various tasks based on preconfigured rules, you can make your entire sales cycle faster and cut tedious tasks.

5. Enables Better Revenue Tracking

Maintaining a steady cash flow is important for your business and delays in invoicing and payments could adversely affect your business operations.

Since your business depends on recurring revenue, you need to create processes that automate the repeat tasks and have your business running like a well-oiled machine.

Quote-to-cash software can help with that. 

Once you close a deal, you can enter the details of the contract terms and payment schedule in the quote-to-cash software solution you use. Once done, it will automate the various processes and things will run smoothly without much human intervention.

Quote-to-cash software solutions also record the revenue data and provide reports to help you track revenue from various customers. At any point in time, you’ll have a clear picture of your company’s revenue and cash flow situation and you can plan accordingly.

Also Read:

• Steps to a Successful Subscription Management RFP Process
• How B2B SaaS Finance Teams Can Use Technology to Their Advantage

Top 5 Quote-to-Cash Software Solutions

If you’re looking for great quote-to-cash software solutions for your business, then start your search with our top five picks.

1. Younium

Younium is a specialized Quote-to-Cash (QTC) and subscription management solution. Unlike generic QTC tools, Younium is designed for B2B SaaS businesses dealing with recurring revenue, usage-based pricing, and complex contracts

Most quote-to-cash software solutions stop at invoicing, but Younium automates revenue recognition and ensures compliance with ASC 606 and IFRS 15.

It provides deep financial visibility with SaaS-specific KPIs like MRR, ARR, churn rate, expansion revenue, and CLV. Its forecasting tools help finance leaders predict cash flow, plan growth strategies, and confidently make data-driven decisions.

If you’re running a SaaS finance team, you know how frustrating it is when your QTC software doesn’t sync well with your ERP or accounting system. 

Younium solves this problem by providing seamless integrations with NetSuite, QuickBooks, and other financial tools. It integrates with all major platforms to allow you to create seamless workflows and improve your subscription management processes.

Key Features:

• Custom Quotes: Create accurate custom quotes tailored to each prospect’s needs while adhering to the company’s policies.
• Automated Invoicing: Generate error-free, consolidated invoices for each customer, which includes all add-ons and fixed costs.
• Subscription Billing: Accurately bill different customers regularly, despite variations in contract terms and payment schedules.
• Cash Flow Insights: Get a real-time view of your incoming and outgoing cash, to manage liquidity and make informed financial decisions.
• Subscription Revenue Forecasting: Predict future revenue based on active subscriptions, renewals, and customer growth trends.
• Compliance Automation: Enjoy automatic compliance with ASC 606 and IFRS 15 by accurately tracking revenue recognition and contract obligations.
• Multi-Entity & Multi-Currency Support: Manage your entire global operations via a single platform.
• Seamless Integrations: Connect your entire tech stack, including all major platforms like Salesforce, NetSuite, and more.
• Next-Generation Insights: Track key SaaS metrics and get out-of-the-box reports to make informed business decisions.

Ideal For:

• B2B SaaS businesses of all sizes and types
• Businesses that offer complex, custom contracts and pricing
• Companies looking for an end-to-end quote-to-cash software solution

Not Ideal For:

• B2C businesses of all types
• Businesses that don’t operate on a recurring revenue model

Pricing: 

Custom pricing tailored to each customer’s unique needs.

2. SAP CPQ

SAP CPQ helps you streamline complex sales processes by automating quoting, pricing, and approvals. So, it’s mostly useful for the first part of the Q2C process.

If you offer custom pricing to customers and have a complex product, then this tool will simplify things for you by preparing accurate, custom quotes.

Unlike basic CPQ tools, SAP CPQ is built for large-scale businesses with intricate pricing structures. It enables your sales team to handle bulk orders, automate discounts, and generate contracts effortlessly.

If you already use the company’s ERP and CRM solutions, then you'll find seamless integration with the two.

Key Features

• Automatic Quotes: Creates accurate, branded quotes for each customer, ensuring they adhere to company policies.
• Complex Product Configurations: It can handle complex product and service bundles, including multi-tiered subscriptions.
• Automatic Prices and Discounts: It can accurately calculate prices and discounts based on the rules to create custom quotes.
• Multi-Currency & Multi-Language Support: This is useful for global businesses that cater to different geographical locations.
• SAP Integration: It seamlessly integrates with other SAP solutions.

Ideal For:

• Large companies with complex product tiers or pricing models
• Companies that sell custom product configurations and have custom contracts
• Businesses that already use other SAP products

Not Ideal For:

• Small or midsized businesses
• Companies with a single product and basic CPQ needs
• Businesses that want an end-to-end quote-to-cash software solution

Pricing:

Custom pricing, which is based on a company’s size and requirements.

3. Zoho CRM

Coho CRM offers CPQ tools as part of its plans. Zoho is a lightweight, easy-to-use CPQ solution designed for small and medium-sized businesses.

If you're looking for a simplified way to generate accurate quotes, apply pricing rules, and automate approvals, Zoho CPQ is a great choice for you. It’s especially great for businesses that are already using Zoho CRM.

It’s not a complex tool and can help with simple CPQ processes without hassle.

It offers customizable pricing rules and discounts to create custom quotes and make the process simpler. However, it might not be sufficient for the complex needs of advanced B2B businesses that offer custom contracts and product configurations to each customer.

Key Features

• Quick Quote Generation: Creates accurate and professional quotes with your branding quickly and easily.
• Automated Pricing and Discounts: Automatically applies pricing and discount rules to offer custom quotes and contracts to customers.
• Cross-Selling and Upselling: It automatically recommends related products and also adds complementary products to quotes.
• Zoho CRM: It comes as part of the Zoho CRM plan, so you get the features of both a CPQ and a CRM software solution.
• Analytics: Allows you to review your quote management KPIs, such as stalled quotes and quotes modified, from a single dashboard.

Ideal For:

• Small and medium-sized businesses (SMBs) looking for a simple CPQ solution.
• Businesses that want CRM and Q2C capabilities in a single solution.
• Companies with a simple product and pricing.

Not Ideal For:

• Large enterprises with complex pricing models and product configurations.
• Companies that already use a different CRM solution.
• Anyone who requires end-to-end quote-to-cash software solutions or advanced CPQ features.

Pricing:

You can choose from one of the four Zoho CRM plans to get access to CPQ tools:

• Standard: $20/user/month
• Professional: $35/user/month
• Enterprise: $50/user/month
• Ultimate: $65/user/month

4. Billed

Billed is a simple and easy-to-use Quote-to-Cash (QTC) solution designed for freelancers, small businesses, and startups.

It’s a simple solution that can handle the quotes, invoicing, and billing aspects of the quote-to-cash process. You can use it to automate invoice generation and get paid faster, without hassle. 

It also offers a free invoice generator that you can use to customize a template and create invoices manually. It’s a good point to start if you have no budget for a quote-to-cash software solution, but you’ll need to upgrade if you want your business operations to run smoothly.

Key Features

• Estimates: Automatically create and send accurate quotes and estimates to customers.
• Automatic Invoices: Generate accurate invoices quickly and easily.
• Automated Reminders & Late Fee Handling: Get paid on time with smart follow-ups.
• Local Currency and Tax Support: Send invoices globally with automatic tax calculations.
• Expense Tracking: Track expenses and receipts to learn how money is being spent on business expenses.

Ideal For:

• Small businesses with a low budget and basic invoicing needs.
• Businesses that need basic cash flow management features in their quote-to-cash software solution.

Not Ideal For:

• Large enterprises that want complex CPQ or contract management features.
• Businesses with subscription billing or usage-based pricing models.
• Businesses that want an advanced end-to-end quote-to-cash software solution.

Pricing:

Here are the various plans it offers:

• Free: Up to 3 estimates and invoices
• Pro: $10/month
• Premium: $25/month

5. OneBill CPQ360

CPQ360 is a quote-to-cash software solution offered by OneBill, which is a powerful subscription management solution.

It streamlines everything from pricing and quoting to invoicing and revenue recognition, making it easier to manage complex subscription billing models.

This is another end-to-end quote-to-cash software solution like Younium, which can streamline your entire process. The key difference is that subscription management, SaaS billing, CPQ, and other solutions are available as separate products within the company’s suite of tools. 

As such, you may need to pay for multiple products to get an integrated subscription management and quote-to-cash software solution, unlike Younium, which is an integrated all-in-one solution.

Key Features

• Advanced CPQ: Automatically generate custom quotes with accurate prices for complex products and pricing models.
• Subscription Billing: Handle recurring billing, usage-based billing, and other subscription pricing models.
• Contract and Order Management: Streamline contract creation, renewals, and amendments.
• Tax and Compliance: Automatic tax calculations and compliance with global tax regulations.
• Integration: Seamlessly integrate with popular CRM and ERP software and payment gateways.

Ideal For:

• Large SaaS companies that require an advanced quote-to-cash software solution.
• Telecom and IoT businesses with complex, usage-based pricing models.
• Large enterprises that manage multi-tiered pricing, contracts, and compliance.

Not Ideal For:

• Small businesses or individuals who need a simple invoicing tool.
• Businesses that don’t operate on a subscription model and have a simple product and pricing.
• Anyone who is looking for a simple, easy-to-use CPQ software solution.

Pricing:

Custom pricing, depending on the number of solutions you need.

Also Read:

• Most Important Subscription Management Software Features
• Essential Subscription Revenue Recognition Strategies

How to Select the Best Quote-to-Cash Software Solution

If you need help selecting the right Q2C software solution for your business, then follow this step-by-step process.

1. Assess Your Business Needs

The first step in the process of evaluating and selecting a quote-to-cash software solution is to assess what your business needs and how complex is your SaaS business.

The more complex your business needs, the more features you’d need in your quote-to-cash software solution.

Before you start comparing quote-to-cash software, take a step back and ask yourself:

• Do you have a simple pricing model, or do you offer tiered plans, volume discounts, or custom quotes?
• Do you need features like multi-currency support, tax compliance, or automated renewals?
• Which tools do you already use and do they need to integrate with your QTC solution?

Based on this internal evaluation, you will learn:

• The purpose you want your quote-to-cash software solution to solve.
• The features that are most important for your business and the ones that are good to have?
• The kind of integration capabilities you want from a quote-to-cash software solution.

Once you have clarity on that, you can start looking for quote-to-cash software that meets your needs.

2. Shortlist Quote-to-Cash Software That Have Features You Need

Now that you know what you want, you can start looking for it. Start with the essential features you want in a quote-to-cash software solution and shortlist some great options.

While the needs differ from business to business, here are some important features that you should consider.

• Quote Generation (CPQ): Quickly create and send error-free quotes.
• Contract Management: Automate approvals, e-signatures, and legal compliance.
• Subscription Billing: Easily handle recurring payments and upgrades.
• Invoicing: Generate and send accurate invoices automatically.
• Revenue Recognition: Avoid revenue recognition mistakes and comply with regulations like ASC 606 and IFRS 15.
• Analytics & Reporting: Track and provide reports on key SaaS metrics like MRR, ARR, and churn.

If you’re looking for an all-in-one quote-to-cash software solution that can streamline your entire financial workflow, try Younium. It helps with all aspects of the Q2C process from quotes to invoicing and payments, making things smoother and efficient.

With its next-generation insights, you can track the most important B2B subscription metrics and get ready-to-use reports without hassle.

3. Consider Scalability and Flexibility

At the previous stage, you should have shortlisted some quite-to-cash software solutions based on their features. Now, you need to consider other aspects to compare these Q2C solutions and find the best one, starting with scalability and flexibility.

Compare the pricing plans offered by various quote-to-cash software platforms and see if they cater to all types of businesses or just a few. A solution that offers affordable pricing for small businesses but can scale up to meet the needs of an enterprise is your best bet.

Also, consider if there is flexibility in customizing the plans to suit your business needs. Look for add-ons, usage-based pricing, or custom pricing plans.

Also look for quote-to-cash software solutions that:

• Offer global coverage with multi-currency support and tax compliance with local regulations.
• Can handle more transactions and can grow with your business.
• Offer different pricing models or plans to cater to different types of businesses.

4. Prioritize Ease of Use and User Experience

This is probably the most important, yet often overlooked, aspect of choosing the right quote-to-cash software solution. 

No matter how feature-rich and advanced a tool is, it will be useless to you if you can’t understand how to use those features or find the user interface confusing.

Yes, you could have extensive training sessions for your team, but that costs time and money. Moreover, most people are resistant to change and don’t want to learn something complicated when there are easier solutions available.

So, compare the user interface and ease of use of different quote-to-cash software solutions before you shortlist one. Checking customer reviews and using demos or free trials can help with this.

5. Compare Integration Capabilities

Your quote-to-cash software solution should seamlessly connect with the tools you already use. This includes CRM tools, accounting software, payment gateways, and other platforms essential for day-to-day business operations.

If your chosen tool integrates with your existing tech stack, it can offer better functionality and seamless workflows.

So, after you’ve shortlisted a few tools based on the previous criteria, compare their integration capabilities at this step. If any of the tools lack in this aspect, drop them from your list and move on to the next step.

6. Check User Reviews and Support Options

At this stage, you should be down to two or three top options for quote-to-cash software solutions for your business. 

Compare the support options offered by each before making the final decision. Prefer quote-to-cash software solutions that offer multiple support channels and 24/7 support.

You should also do some research to find how prompt and responsive a company’s support team is. Check customer reviews on trusted platforms like Trustpilot. G2, and Capterra to see what people say about a company’s customer support and overall experience.

If you want to be more thorough, you can send them a message via one of the available channels and see how quickly you get a response from their support team.

Good customer support can improve or ruin your overall experience with a software solution, so do your homework and choose the best one.

7. Leverage Free Trials and Demos

Lastly, even if you’re 100% sure about choosing a particular quote-to-cash solution, you should not invest in it before trying it out.

Most quote-to-cash software providers offer either a free trial or a free demo to help you test it out. Use those options to check whether you’re comfortable with the user interface and are able to use the features to your advantage.

Sometimes, you may find issues only after using a tool, even if it seemed perfect on paper. So, hands-on experience is important before you choose a quote-to-cash software solution for your business.

FAQ

It is the process that includes everything from sending a quote to a prospective customer to turning them into a customer and earning revenue from them. It includes pricing, quoting, contract management, billing, and payment collection.

CPQ (Configure, Price, Quote) is just one part of the Q2C process and involves creating and sending accurate quotes to prospective customers. Q2C covers the latter tasks, such as contract management, billing, and payments, along with CPQ.

A quote-to-cash software solution automates and streamlines the entire quote-to-cash process from quoting to revenue recognition. It helps businesses save time and maintain complete transparency and accuracy in invoicing and billing.

Quote-to-cash software solutions make the sales and billing processes faster, more accurate, and more efficient. By automating various tasks, it saves time and effort, which you can dedicate to more important tasks instead of dealing with repetitive tasks.

Younium is built for B2B SaaS businesses and can handle even the most complex product configurations and pricing models. If you offer custom contracts and payment terms to your customers, then Younium is the perfect solution for you.

It’s an end-to-end quote-to-cash software solution, which also provides subscription management features and advanced analytics. It’s a complete package for B2B SaaS businesses that can streamline everything from quotes to billing.

Conclusion

There you have it—an in-depth guide to everything you need to know about quote-to-cash software.

Use this to understand the Q2C process and choose the best quote-to-cash software solution for your business.

If you run an advanced B2B SaaS business, then there’s nothing better than Younium to manage your day-to-day operations. It’s an all-in-one solution for subscription management and quote-to-cash management for your business. Try Younium Today!