Delegate, Focus, and GROW Your Business

Billing Services: Worth the Extra Money?

Large corporations can easily afford to pay for billing services or have in-house billing and accounts teams. However, for small to medium businesses the benefits have to outweigh the costs. In an ideal world, every business would have billing services. Keeping track of invoices, accounts receivable etc. is essential to building a successful business. If you do not know how much money is going out or coming in, you are effectively blind to how well your business is performing. However, the question remains: Is paying for billing services worth the extra money?

Benefits

Dealing with accounts is one of the most time consuming aspects of running a business. Ensuring that the books are balanced, chasing outstanding payments, identifying and correcting errors etc. really doesn’t leave you much time for anything else. Paying for billing services will free up your time so that you can concentrate on managing the business. Depending on the nature of your business, paying for billing services can greatly increase your revenue. By having detailed, accurate records, you can identify ways to increase revenue or drop products and services which simply aren’t selling. You can choose a tailored billing service, where you dictate the level of detail that is recorded. For instance, you can include details which will help you determine when products or services perform best. A good billing service essentially provides you with marketing data which you can use to justify the extra payments.

Cons

You are taking a risk without knowing whether the extra cost will help your business. Someone else is responsible for ensuring that your books are balanced and both incoming and outgoing payments are up to date. Until you look at your billing records, you have no way of seeing the details of your business accounts. If your business has peak seasons, paying for a billing service all year round may not be financially feasible. Of course, most of the cons of paying for a billing service are due to cost versus benefit. Using a traditional billing service or hiring accountants is expensive. There is no point in balancing the books if balancing the books forces your business into bankruptcy. So, unless the billing service helps your business grow and increase in profitability, you are essentially throwing away money.

However, there is an option which works well for small to medium businesses, at a fraction of the cost. Hiring a virtual assistant who is proficient in book keeping will provide you with much more flexibility – and at a lower cost. Through CVA, you have the option of hiring the billing assistant all year round or opt for a package which allows you to choose when and for how long you use the billing service. It is an option which is well worth considering, as you decide when and how you wish to use the service. With the freedom afforded by a virtual billing assistant, you could see your business propelled to the next level in no time at all.

photo credit: soozafone

Posted on October 17th, 2016 by Rachel Braam, Office Manager

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