Invoicing can be a hassle for many small-to-mid-sized businesses. On average, it will take about twenty-five days to process an invoice from receipt to payment. With such a lengthy period, businesses face risks, including more delinquent payments, processing costs and delays, and other issues. Let us take a look at how a third-party billing solution can help improve your revenue cycle.
What is third party billing?
Third party billing is a relatively simple concept. Simply put, all you do is upload a data file each month and Integration, Inc. will print and mail out your invoices for you. Third-party billing will consolidate all your invoices to reduce time and money that your business spends doing this on its own.
How long does it take to send an invoice?
Third party billing works best for businesses that send many invoices weekly, biweekly, or monthly. Invoice timing is everything. As soon as you get your data file to Integration, Inc., your invoices can be generated and mailed quickly. The average small business can take anywhere from a few days to an entire week to get out a large batch of invoices.
Getting invoices out in a timely manner means faster access to revenue. Once an invoice is out, 63% of businesses will pay for an invoice within 30 days. However, if a business receives an invoice late, the likelihood of the invoice being paid in a timely manner drops significantly. Late invoicing contributes to missed payments. The total dollar amount in overdue payments made by small businesses each year totals more than one trillion dollars.
How much does it cost a small business to handle their own billing?
Businesses that handle their own invoicing will spend anywhere from $12 to $15 to process that invoice. Errors on mailing or printing an invoice can also be expensive. Invoices with errors can cost more than $50 to rectify.
With Integration, Inc., you simply upload your data file each time you need to send invoices. Our method reduces the likelihood of error and increases your cash flow each month by getting your invoices out on time.
Integration, Inc. works with your business practice
The best thing about third party billing is that you do not have to change the way you do business. Integration, Inc. can print and mail invoices in a timely manner that matches your billing cycle. Additionally, your invoices are customized to your business needs. Let us handle your third-party billing for you, reducing the time and effort spent on your accounting process.