Running your own business is a lot of work, and even though you may feel like you need to do it all on your own, it’s actually a good idea to outsource some of your work, especially office tasks such as billing services and invoicing. There are a number of advantages to outsourced billing.
One of the biggest advantages of outsource billing services is reduced costs. When you hire a third party to do your billing, you will pay a fee that’s based on the size and frequency of your billing needs. That fee in most cases will be much less than the costs associated with having personnel on staff who would be needed to do billing. Hiring a company to do your billing for you also means you don’t have to spend money on billing supplies, such as forms or special software needed to do billing tasks.
Another advantage of outsourced billing is the speed with which it can be done. Bills that are outsourced tend to get paid faster, on average about one to three days faster than if you handle your billing in house. That means you get needed cash faster, which could reduce your need to borrow money or do invoice factoring.
When you hire out your billing services to a third party, it also gives you the opportunity to have electronic billing. Trying to do electronic billing on your own can be extremely difficult and costly. But most third-party billing companies offer electronic billing as an option. Electronic billing makes paying bills easier for your customers and can make them more likely to pay their bills on time and cut the time and costs you have to devote to collections efforts. It also often is a cheaper option for you because of the lack of paper and postage costs. When you use a billing service that offers electronic billing, it also creates an automatic archive that makes it easier for you to keep track of your billing statements as well as collections efforts.
With the advantages that it offers, including reduced costs and increased speed of payments, outsourced billing is an option that businesses would be wise to consider,