The Rising Cost of Doing Business
Weak performance of the dollar, rising healthcare costs, and rising energy prices are the leading factors for low confidence in the economy. Higher costs associated to keep up with regulatory compliance, and increasing prices for the raw materials needed in production have tightened available margins considerably. Add to this interest rates which are projected to increase continuously, and it becomes essential for CFOs and CEOs to reduce short-term financing needs and strengthen cash management.
In response to these challenging pressures, companies are increasingly choosing to outsource the paper-dependent and manual billing process. Billing outsourcing decisions are driven by the urgency to improve accuracy, reduce operating costs and regain control of a back-office function that been plagued for years by an under-investment in technologies and staff.
Why Choose to Outsource Billing Functions?
The core of managing cash flow is learning how to manage your receivables cycle. An efficient and effective billing outsourcing process is the cornerstone of this foundation for solid finances. Investing funds in billing outsourcing saves precious time. Employees will be able to spend more time on other essential business components, and accounting departments trying to make sense of the billing cycle will have all the needed information at their fingertips.
What Main Benefits Can be Expected From Billing Outsourcing?
Accounting and finance processes can be breeding grounds for inefficiency, full of redundant manual processes. This sets the stage for efficient billing outsourcing. Businesses who choose to outsource their billing processes should expect to see the following benefits:
Reduced Processing Costs
Outsourcing the billing process, which is all too often fragmented across numerous systems and units, can dramatically streamline and automate routine duties. Generally, many companies notice a 30%-60% reduction in processing costs through outsourcing.
Elimination of High Fixed-Cost Structures
Having the billing function outsourced can improve the finances of companies by converting the back-office cost to a variable-cost from a fixed-cost. Pay per consumption methods ensure that as billing needs for the company contract or expand, processing fees mirror this trend. Costs will align more evenly with the business cycles of the company.
Enhanced Efficiency with Leading-Edge Technology
One of the advantages to billing outsourcing is that a company does not have to make expensive investments in the latest support upgrades, software, or hardware. Changes and advancements in technology are the sole responsibility of the company you have chosen for billing outsourcing. Although an outsourcer will generally require minimal ongoing or upfront capital investments, their client’s companies are able to gain immediate advantages from improvements in productivity.
Detailed reporting every step of the way and integrated functions for accounts receivable combine to ensure that decision support in real-time is possible. All the data and tools are easily accessible and easy to understand. Put control back where it belongs – in your hands.
