Outsourcing is not all that much different from sub-contracting since the term is applied to what happens when a company or business ceases to perform all of its functions in house and sends some of them out to third parties. Many think that outsourcing only applies to production activities but, these days, many of a business’s office functions are being outsourced often to countries with lower labor rates but high concentration of computer literate employees (such as India or The Philippines).
Outsourcing Financial Activities
All businesses have to spend money for payroll, essential supplies, advertising, etc. At first, this money could come from initial investments and/or loans but, sooner rather than later, the business must generate enough income to cover the outgoings and, hopefully, make some surplus for profit.
This is usually achieved by selling something (goods or services) to interested customers and then billing them an agreed amount as their payment to you. In over the counter type businesses the bill is handed out on the spot and its settlement is more or less immediate.
However, a vast number of businesses do not operate that way. Instead, they perform a service or ship goods to customers and raise an invoice that details what has been purchased; what the cost is for each item and the total amount that will have to be paid. More importantly, this invoice (or billing) will also state the latest date by which it must be paid in full.
This not only requires the encoding of a lot of data but it also requires detailed management of the process from invoice issue through to receipt of full payment. Billing Outsourcing Services can take care of this management through the use of sophisticated, web based computer programs. This can speed up a company’s cash flow and free up employee time allowing them to better concentrate on the business’s core activities. This is a major upside to the use of Billing Outsourcing Services.
But, There Can Be A Downside
Even the best of invoicing can make mistakes or, customers can be confused over what they have been invoiced for. On most invoices, there is usually a telephone number and a message saying that the recipient should call that number if they wish to question anything on the invoice.
If a company that uses Billing Outsourcing Services includes answering customer’s complaints or queries about the invoice; this must be handled with the utmost care. When customers dial a local number, to find out why they are being billed for something that they believe was never supplied; they expect results. If they not only fail to get an acceptable solution; but also discover that they are speaking to someone on the other side of the world; that is when your business could lose that customer forever.
For excellent best practice processes and technology in Billing Outsourcing Services, you should contact a firm with all the necessary know how. One such firm is IQ BackOffice, Inc. You can check this out by browsing their website from Website.
