In the digital age, companies are opting to forgo contracts with traditional printing and mailing services in favor of electronic billing. In addition, instead of handling the process of electronic invoicing in-house, many businesses are choosing to outsource billing services. For those who aren’t familiar with electronic invoicing, you may have questions as to whether it’s the right move for your company.
So to help you decide, let’s debunk three popular myths about electronic billing.
Electronic billing creates confusion for customers
Customers are becoming more and more accustomed to receiving, viewing, and paying their bills electronically, to the point where it’s a commonly requested feature. Customers like having one location for keeping track of their expenditures, and an outsourced, electronic billing system better provides customers with the information they need.
Electronic billing also provides an easier and quicker way for customers to interact with their billers, thus reducing customer phone calls and frustration. Moreover, in one study, a quarter of customers felt their relationship with their billing company improved after switching to electronic billing. Even a change to outsource utility billing can help increase satisfaction and decrease customer questions.
Outsourced billing creates more opportunities for error
Electronic billing is actually much easier to track than traditional paper billing. When you outsource utility billing and other types of invoices, you’re assured that all communications with your customers, as well as processing of invoices, are delivered quickly and accurately. When you outsource billing services, the business also gains a digitally stored, organized archive of all electronic billing communications. Customers will also appreciate being able to easily reference and access their electronic invoices, and because paper bills can easily be lost, e-billing is much more effective.
Electronic invoicing services cost too much money
You might have the impression that contracting with an outside billing company won’t be a cost-effective option, but in actuality, it will improve your billing process with little to no extra cost or effort on your part. In fact, it will allow your company to reduce or redirect personnel costs and resources. In the process, you’ll save a substantial amount of money by eliminating the need for printing equipment and repairs. A typical company can save an average of 11.5 cents per billing cycle when they switch from print services to electronic billing, which can really add up.
Even better, because electronic invoicing cuts down on collections time, it will help increase cash flow and can increase your receivable speed by one to three days. One recent study even found that half of customers paid an electronic bill before the paper version would have even arrived in their mailbox, and nearly one out of five customers paid their bill the same day it was received. Customers will love the speed of an electronic option, which can help them budget by keeping better track of their expenditures.
If you outsource utility billing for your company, you should feel safe in the knowledge that electronic invoicing will provide reliable, fast information that can save your company and customers money. Contact Information Outsource to find a solution that works for you.