Many small business owners eventually learn that billing services can become a full time job. Small business owners intend to cut costs and handle all billing on their own, only to find that there are many struggle associated with it. When you choose to outsource billing, you will notice that you have more time to focus on other parts of the business. You will also find that outsourcing billing needs has many business advantages.
Consistent source of payment for customers
When a business owner chooses to handle payments on their own, the process tends to be inconsistent. When busy, you might require that your clients pay electronically. When you have free time, it might seem easier to call them individually for payment. This results in customer confusion, as they never know the best way to make payments. When you utilize an outsourced billing company, however, customers are able to use which ever payment process is best for them. This makes customers happier, and you find that you are able to collect more payments.
Higher rate of pay
Some customers require numerous notices before they actually submit payment. This not only takes a lot of time out of your schedule, but results in many past due customer accounts. Outsourcing your billing can help you speed up your receivables by 1 to 3 days, and improve your overall cash flow. The entire payment processing system is quicker and you are likely to see a higher rate of pay from customers.
Cut office costs
Traditional billing methods include mailing statements. An office staff must print and mail each statement, increasing office costs with printer paper, ink, envelopes, and stamps. When you have to send multiple notices, this cost increases even more. Organizations can save an average of 11.5 cents per billing statement, just by avoiding paper. Electronic statements are usually a better option for both the business and the consumer. The majority of customers prefer the convenience of electronic payments.
Assess late fees and ensure accuracy
Charging late fees is a great way to encourage prompt payment from customers. However, this process can be difficult to follow without an automated billing process. It would simply take too much time to individually add late payments to each bill. When you outsource the billing statement process, however, you are able to collect these late fees. The late fees are automatically added to the electronic billing process and the customers can either mail in their payment or pay electronically, including the late fee charges.
Screen customer questions and concerns
The billing process often brings a lot of customer questions. Customers are likely to call frequently regarding things like their charges, late fees, or to set up payment plants. Electronic billing, unlike mail bills, can present an easier and quicker way for consumers to interact with billers. Everything is done electronically and you have a dedicated billing team to screen all customer questions and concerns. Additionally, as you are able to answer customer questions and concerns about their bills quicker, you will see an increase in payments.
Billing processes, just like other types of business services, have been advanced with the internet. The majority of billing is now handled electronically and is convenient and beneficial for both the customer and the business. However, even with an electronic billing system, business owners will find the billing process very demanding. Outsourcing the billing process can ensure that you have more time for your business, increase prompt payments, ensure accuracy among billing, and has the ability to automatically charge late fees. Outsourced billing is crucial for success as the business begins to grow.