From Software-as-a-Service (SaaS) and movies on demand, to subscription boxes and online memberships, recurring revenue models are changing the nature of business, creating new opportunities for some and disrupting others. The benefits for those able to adapt include improved cash flow and increased valuations.

But implementing a recurring revenue strategy isn’t without its challenges. Success requires a steady stream of new customers and the ability to retain them month after month. To do either, you need to have the right people and processes in place, especially in finance, because how you bill customers and when you collect payment have significant implications for accounting.

So whether you’re planning a new venture, transforming an established company or trying to develop an additional sales channel, it’s important to understand how adopting a recurring revenue model impacts your business.