The pros and cons of outsourcing invoicing
How does outsourcing invoicing work?
Outsourcing invoicing can be done in two ways. You can choose to hire a third party to do the administration for you, such as an accounting firm. They will create your invoices, send them and monitor whether outstanding invoices are paid. You no longer have to look after it yourself. This saves a lot of time, because you don’t have to create and send an invoice reminder every time.
Another option is to opt for factoring. Factoring services are services where your outstanding invoices are transferred to a factoring company. They take over the risk of defaults and administration costs against payment. Read all about factoring here.
Why should I outsource factoring?
Without invoices, you have no revenue. So it is an important task, but it is not always the most enjoyable task and it can also be time-consuming. Outsourcing invoicing speeds up the process and reduces the need to look after your administration. A roadmap for unpaid invoices is suddenly a lot faster and easier to implement. Do you opt for factoring? Then you will have the money in your account immediately and are insured against bankruptcy risks.
Advantages of outsourcing invoicing
Outsourcing invoicing comes with many advantages. The biggest advantage is that you no longer have to look after it yourself. Besides saving time, you can also save money by outsourcing invoicing. Having administration done internally can cost a lot of money, especially in the traditional way. Of course, outsourcing invoicing also costs money, so if you have little administration it might be better to have it done in-house. Do you have a lot of administration and spend a lot of hours on invoicing? Then it could be a godsend.
Benefits at a glance:
- Faster payments
- Save valuable time
- Improved cash flow
Disadvantages of outsourcing invoicing
Outsourcing invoicing also comes with some drawbacks. It may not always run perfectly. For example, if you want to outsource accounts receivable management to an accounting firm, you often have to pay more. Without debtor management, you have no overview of outstanding invoices and cannot take action to get them paid. This is unfortunate, because the very idea is to get the invoices settled.
Another disadvantage of outsourcing invoicing is that you lose personal contact with your customers. This is because you miss a contact moment that you would normally always have. A good time to strengthen the customer relationship.
Outsource invoicing with Payt
Why choose Payt? Payt is more than just invoicing. Payt is a complete debtor management software that allows you to be in charge. For example, electronic invoicing is possible and you can also do automated follow up. Payt automatically starts a reminder process in which you have full control. From the first outstanding invoice to the final reminder. You can save up to 80% of your precious time with this feature. So you don’t have to keep track of which outstanding invoices need reminders and send them yourself. Our software takes care of everything for you. Are you already using an accounting package? No problem! You can link Payt with various integrations, such as Exact Globe or Exact Online.
Do you have any questions about outsourcing invoicing or our software? Feel free to contact us. We will be happy to advise you.
Schedule an online demo
Curious about the benefits of Payt for your organisation? Schedule your personal online demo with Aziz! You will receive an interactive demonstration of our platform for accounts receivable management, without any obligations.