In a previous blog post, we covered how outsourcing your non-core competencies can drive business growth and competitive advantage. Let’s cover the benefits that outsourcing billing and invoicing specifically can provide your business.
What are outsourced billing and invoicing services?
Outsourced billing and invoicing providers typically offer the technology and the expertise to manage all presentment, billing and invoicing processes. Using automation and integrated tools, the right vendor can simplify and accelerate your entire billing and payments infrastructure. Services might include:
- Invoice presentment, workflow management, customer notifications and payment initiation
- Customer invoice import from a variety of formats, from email to paper, plus the ability to review, approve, dispute and adjust invoices
- Automated data extraction and matching and a consolidated view of cash application
- A variety of payment channels and methods, both online and offline
- High-volume processing centers that manage jobs quickly and efficiently
- Centralized processing that expedites settlement timeframes, reducing the number of days sales outstanding and helping you optimize working capital
- A single platform with a complete view of your receivables at every stage of the process
- Continuous updates to mitigate risk and keep up with security and compliance standards
There are several benefits to outsourced billing and invoicing with the right provider—especially in the macroeconomic climate we currently find ourselves. Layoffs and cost reductions mean many businesses need to get by with far less. Handing over billing and invoicing to an expert takes financial and resource burdens off your business’s shoulders.
Reduces costs
Cutting costs is always a good thing, especially right now during inflation and a possible recession. While you would have to pay an outside vendor if you choose to outsource these services, that cost is usually much lower than hiring, training and managing in-house staff, shelling out other overhead expenses associated with those employees, and implementing and maintaining your billing and invoicing infrastructure. If many of your customers are still predominantly receiving communications via print, then your in-house costs would also include a print facility with the capacity and skill to handle all your time sensitive customer communications. Plus, there are typically major cost savings associated with USPS rates when being managed through a provider who is handling large volumes of mail.
Outsourced services allow you to scale up or down operations without additional resources and slash capital costs for equipment, compliance measures and technology. The right billing and invoicing vendor can also help you save money in other ways. For instance, they can help you launch and manage a digital adoption program to reduce the increasing costs of printed statements and postage. If you’re still using a lot of paper, a partner can help you reduce costly errors such as incorrect addresses and return mail.
Improves cash flow
If your internal billing and invoicing workflows, channels and methods aren’t optimal and you lack accuracy in mailing addresses, you risk not getting paid on time.
Outsourcing billing and invoicing, especially components like accounts receivable, can reduce your days sales outstanding. Using technology that fully integrates digital and print solutions across the collections experience gives customers and collectors multiple ways to connect with and pay you. This helps you get paid faster while reducing the time and effort it takes in-house staff to track down payments.
Look for end-to-end solutions tailored to your business rules and underpinned by automation to simplify functions across your company and boost operating efficiency. Doing this will increase your working capital and workflow management processes.
Provides expert service
Do you have the right skills in-house to manage billing and invoicing well? If the answer is no, then hiring an outside vendor is a far more cost-effective and efficient way to attain the skills you need, without having to become an expert yourself. The right partner has experts with deep experience handling all elements of billing, invoicing, and communications across verticals. They understand the rules, data privacy laws, security requirements, latest technology and needs specific to your industry, which mitigates your risk. And echoing the point above about reduced hiring costs, bringing in outside help also means you don’t have to spend money or time training in-house staff in these areas.
If you’re considering outsourcing your billing and invoicing processes, get in touch with OSG to learn how we can help. We have robust experience in the payments landscape and specific industries like financial services, government, property management, healthcare, and consumer services.