It sounds crazy to even say it, but the process of collecting money owed to your company is, in itself, a costly ordeal.
A lot goes on from moment your services are requested to the moment you receive your payment. The more complicated these processes are, the more costly the overall process is to everyone involved.
Let’s take a look at why you should focus on simplifying your billing and collections processes as soon as possible.
Many companies offer a variety of payment plans to their clients, often as a unique selling proposition.
However, doing so inherently makes the process of collecting fees way more complicated than it needs to be.
For example, if you have a policy in place requiring half-payment up front and half upon rendering your services, you’ll need to track two billing instances instead of one (for every one of your company’s clients). While this might not be that big of a deal for larger companies, it be a logistical nightmare for startups that can’t afford to spend excess time and resources determining which of their clients owes what.
By narrowing the amount of payment plans your company offers, you make it easier to track your clients’ accounts – saving time, money, and energy in the process.
Assigning Individuals to Accounts
From the onset of a business relationship, you should know exactly who is in charge of sending payments on your client’s end, and who’s in charge of receiving it within your company.
This will ensure that someone – on both ends of the transaction – is keeping track of what’s owed, when payment is due, and how it’s being sent.
In turn, this will minimize instances of delayed or lapsed payment, and will give your company a direct line of communication if such circumstances arise.
More Efficient Use of Resources
The more time spent billing and collecting money from clients is time that can’t be spent elsewhere.
In other words, not only does a complicated billing process lead to resources being spent, but it also leads to loss in potential future revenue, as well.
For example, imagine a client misses a monthly payment due to a complication on your end. You decide to withhold services and billing the subsequent month while you fix the issue. Not only did you lose time and money fixing the problem, but you’ve also lost a month’s worth of revenue (and potentially more, if the client decides to move on due to the problem).
By simplifying your billing processes, you make it easier for your clients to pay for your services, and allow your employees to focus on providing the best service possible.
The Panther Group Can Help!
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Panther’s Workforce Solutions team provides numerous inventive ways to help you manage your ever-changing headcount, watch your bottom line and focus on your company’s goals. Each of our staffing services is designed to free your time, improve your output and enhance revenue. Let us help you determine which solution is best for you.