Billing Service Continued…

• Increased operational efficiency and effectiveness. A Billing Service will provide a service level agreement that covers such things as billing system availability, timeliness, accuracy and output. Billing Services effectively increase productivity while reducing processing costs.
• Improved revenue stream and cash flow. With billing running on a more consistent basis, your company will benefit through a more predictable revenue stream. You will realize an increased cash flow and achieve greater control over revenue through efficiency.
• Reduced financial risk. Your need for expenditures on equipment and personnel will be reduced. Costs for benefits to cover an employee will no longer be necessary.
• Flexibility. If your billing needs grows, your Billing Services provider can quickly and efficiently add personnel. You will not need to hire, interview, or dismiss any accounts personnel ever again.
• Services can be added on. In addition to basic accounts receivable services, your business may want to expand to online billing, in bill marketing, and collection services.
• Many Billing Services offer more than just standard billing, allowing you to expand the services you offer to your clients, without over-expanding your bottom line.

In addition, a Billing Service can increase collection rates, eliminate the need to store forms, envelopes and equipment, and improve the way your business communicates with its clients.

Billing Services Products

Billing Services providers offer a large variety of products. Of course, paper billing is the most basic and most needed service for most businesses. Paper Billing involves getting your billing data to the Billing Service (via specialized software or simply through email), then processing, printing, folding, stuffing, addressing, and mailing the resultant bills. Most of the process is completed electronically. Billing Services will offer customized bill design services to align the bills with your company or corporate branding strategy. Marketing inserts, in-bill messaging, and customized reporting are additional products often offered with Paper Billing.

Many Billing Services can now offer your company and your clients Online Billing. Services vary, but many providers will set up and maintain a web portal through which your clients can pay and review their bills. Extended resources might include bill archival and access to enable your customer service personnel to better communicate with your clients.

Where To Get Started

A quick search of the Internet will provide you with the names of many Billing Services in your area. Be sure to shop around and get references from other businesses (especially ones that are in your company?s industry and size range). Evaluate a prospective Billing Service with some of the following criteria:

1. What billing software or system is being used; How long have they used the system and is it up to date; How often do they experience downtime?
2. What computer or data backup systems do they have in place?
3. How will your company be billed; Per statement or percent of revenue?
4. Does the Billing Service have a compliance and confidentiality plan?

Inevitably, will be many questions your company will need to answer before you contract a Billing Service. Consult your legal advisor or CPA for guidance with this important move.

By MS Kauffman