Why You Should Outsource Your Billing Practices?
For many business owners nowadays, bill collection is an unavoidable and time-consuming task. When you outsource billing services, you can achieve reduced operating expenses, better cash flow management, higher collection rates and peace of mind. Additionally, as customers increasingly use online banking, switching to online billing helps you meet their needs. The outsourcing decision boils down to one factor: cost.
Here’s a short comparison:
When using In-house Billing Services
When you have an internal billing staff and department, it adds to the operational and administrative costs. The company will be spending for the salary, benefits and health insurance of their employees, paying for federal taxes, costs of training to keep them updated on the latest industry developments. Another point to consider here is that the technical necessities are upgraded and changed regularly. Not to mention the costs of paper, office space, office hardware and other miscellaneous costs. The company will also be spending for software and hardware systems and maintenance.
When using Outsourced Billing Services
By outsourcing billing services, the company can potentially save a lot of money in the form of annual salaries and benefits that an internal billing staff demands. The outsourced service provider will be the one responsible for salaries and benefits, training and updating their own employees. Outsourcing will also help if your company is new or just starting. New providers have plenty to learn and worry about aside from the administrative/clerical side of the business. Outsourcing their billing right off the bat can give them much needed relief from the day-to-day stress of launching a new business, without a trial by fire in hiring, training and managing employees. Outsourcing the billing process eliminates the hassles.
It’s important for a company to factor in their individual costs and preferences when deciding whether or not to outsource their billing services. In a head to head comparison, studies show that outsourcing had the highest net income. However, cost isn’t the only issue a company should consider. There are plenty of other factors involved in this business decision that may be as – if not more – important than costs.
To find out more about how June Spring Contact Solutions can help you with your billing collection services needs, call us at (US) 408 600 2621 or (AU) 08 6102 5588. You may also check our website here. There is never any obligation until you have found the perfect solution for your business.