Five Reasons You Can't Do Your Business' Billing All By Yourself

Savannah Coulsen

April 01, 2014

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With software available for almost any task, some entrepreneurs think that buying billing software is wise. But if business owners want efficiency, want their businesses to grow and want a work atmosphere that’s s relatively free of headaches, here are five reasons why businesses should outsource billing to a billing service.

Time Lost and Staffing Decisions

It takes time to install and learn how to use new software. Software updates and technical glitches are inevitable. Does the entrepreneur have the time and inclination to deal with these issues as they relate to billing? Must the business owner hire a billing specialist instead?

Trouble Collecting Monies Due

In-house billing is not as effective in collecting monies due as billing companies. The billing industry reports that using a billing company helps a business to collect from five to 15 percent more of its billed revenue, with 10 percent being considered a very good rate. The company charges a fee for collections, but entrepreneurs agree that good results make the fee worthwhile.

It’s Hard to Keep Up With Rapidly Changing Technology

In-house, does a company’s billing department have a system in place to recover files in the event of a natural disaster or a technical failure? Payments made by mailing a check are slow. Can the business accept payments through banks and mobile devices? Billing services safeguard files against disaster and can help clients set up payment methods that please customers.

Billing Errors in Medicine Invite Prying Eyes and Loss of Revenue

Medical practices that enter inaccurate billing codes or make mistakes in classifying procedures and services may invite audits by federal, state or local agencies. To avoid this scrutiny, it’s wise for healthcare operations to use a billing company such as cobalt billing company that’s knowledgeable about the complicated billing codes used in medicine. Also, without correct billing codes, healthcare providers may not receive adequate compensation for services rendered.

Costs

Hire a billing company and eliminate the printing, folding, stuffing and addressing of bills. Such a hire also eliminates time-consuming trips to the post office. Costs for office paper and printing go down. And since there’s no need for a billing specialist, that payroll expense goes too.

Since in-house billing eats up time and resources and software is a technological tool that's most effectively used by experts, many entrepreneurs discover that it pays to select a billing company.