The Benefits of Outsourcing Your Billing Services

Utility billing software

If you run a business that involves any kind of billing services, then you’re probably aware that it’s a brave new world out there — and not all of it’s great. Between managing your accounts receivable, invoice printing, wrestling with technology, and follow-up, getting paid for your services is almost as much of a job as providing them!

The Benefits Of Outsourced Billing
Did that paragraph make you weep with empathy? If so, then it might be time to outsource billing. Hiring a reliable print and mail service for all your billing needs can save you significant time and even money. Yes, money. For one thing, if you jump on the electronic billing bandwagon and hire a firm with experience in this, you could save an average of 11 cents per bill on paper costs. For another, even if you decide to go the old school print and mail route, having a firm who specializes in document printing services can speed up your invoice-to-payment turnaround and increase your cash flow.

Outsourcing your print and mail services can also help with customer satisfaction. Now I know you might be thinking, “How can that be? It’s like I’m hiring the print and mail billing secret service to hound them!” But that’s not so. Many consumers are thinking about their bills only on the margin, and aren’t fully aware of due dates, avenues for payment, etc. Outsourcing your print and mail services can increase customer satisfaction because you’re making it someone’s business to work with your customers solely on billing. They will have a point of contact for all billing logistics, and your billing people will know the answers to the most obscure of billing questions! Good billing services companies also have the capability to provide your customers more convenience and security, whether that’s via online payments, better encryption, or customer service hotlines.

Finally, a professional billing service can also act as a consultant when it comes to your organization and archiving practices. Bringing one on board gives you the opportunity to gain insight into how to stay more organized and efficient.

How Much Will This Cost You?
The cop-out but accurate answer is, “It depends.” Some companies provide a la carte services and some require that you go all-in with them. Some take a percentage of your revenue, charge per a claim, or dictate a flat rate charge. The price will change according to their policies and which package you choose. However, you should count on paying at least 4% to 10% of your collections on your billing service. Also if you can, try to negotiate your contract as firmly as possible and make sure it’s designed in a way that maximizes its utility, flexibility, and value to you! One of the benefits of living in a competitive market is that everything can be negotiated — even the bottom line.

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