Although outsourced billing typically leads to decreased collections time and increased cash flow overall, many businesses are still reluctant to outsource billing services. This reluctance can often be attributed to several misconceptions about the practice of outsourcing and what it can mean for your organization. Below, we’ll discuss just a few of these misconceptions that may be keeping you from outsourcing your billing and illuminate the truth behind them. The reality might just change your mind about switching to outsourced billing.
Misconception: I’ll lose control of my billing quality
A lot of business owners believe that because they’re giving up control of their billing, the quality won’t be maintained. But more than likely, having to handle your billing yourself (along with everything else you have to do to keep operations going) results in lower quality to begin with. It’s much harder to catch typos, billing inaccuracies, address changes, and more when you’re wearing a million different hats. But your billing company, in contrast, has more focused responsibilities: to make sure your invoices are right and that they go out on time. When you’re paying for a specialized service like this, your company has obligations to fulfill. To keep your business, they’ll make sure all of your communications meet their high standards.
Misconception: I won’t have access to important data
Just because you won’t be handling your billing in-house doesn’t mean you’ll be cut off from the information you need. In fact, your billing company will give you an organized and convenient archival system, stored digitally, that allows you to see everything you need online. That way, you can make sure invoices go out when they’re supposed to and that everything is accurate. Your billing company will want to make sure you’re every bit as informed as your clients are, so you’ll likely receive frequent reports and can get in touch with staff right away if there’s an issue.
Misconception: Outsourcing my billing will cost too much
This is one of the biggest misconceptions that keep businesses from outsourcing. But outsourcing billing services is actually quite affordable and will help you cut unnecessary costs within your organization. Think about all the time and money you and your staff spend on purchasing and maintaining printers, ink, software, paper, and more. Those costs can add up quickly and can take funds away from more vital components of your business. In most cases, outsourced billing is actually a good financial move that will end up saving you money.
Granted, outsourcing invoices and communications may not make sense for every single business. But if you’re struggling to improve your cash flow or you’re on the receiving end of frustrated calls from customers, it may be something to consider. One thing’s for sure: these misconceptions shouldn’t keep you from making the switch.