Pros and cons of outsourcing invoicing

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Aida Kopijn July 9, 2024
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The Pros and Cons of Outsourcing Invoicing

Every company, big or small, deals with invoices. Invoicing is an important part of any business because it ensures that the company gets its finances in order. What exactly is invoicing? Invoicing involves sending invoices to debtors and is part of debtor management. Think of services or products you have sold. It is important that the invoices are paid so that a company remains financially healthy.

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 can create, send, and monitor invoices to see if the 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 a payment reminder each time.

Another option is to choose factoring. Factoring services are services where outstanding invoices are transferred to a factoring company. They take over the risk of non-payment and administrative costs for a fee.

Why Should I Outsource Invoicing?

Without invoices, you have no income. It is therefore an important task, but it is not always the most enjoyable task and it can also be time-consuming. By outsourcing invoicing, the process goes faster and you have to look less at the administration. A step-by-step plan for unpaid invoices is suddenly much faster and easier to execute. Do you choose factoring? Then you 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 the administration done internally can cost a lot of money, especially in the traditional way. Outsourcing invoicing also costs money, so if you have little administration, it might be better to have it done internally. Do you have a lot of administration and spend many hours on invoicing? Then it can be a solution.

Advantages at a glance:

  • Faster payments
  • Save valuable time
  • Improved cash flow

Disadvantages of Outsourcing Invoicing

Outsourcing invoicing also comes with some disadvantages. It may not always run perfectly. If you want to outsource debtor management to an accounting firm, for example, you often have to pay more. Without debtor management, you have no overview of the outstanding invoices and cannot take action to get the invoices paid. That’s a shame because the intention is that the invoices are arranged.

Another disadvantage of outsourcing invoicing is that you lose personal contact with your customers. You miss a contact moment that you would normally always have. A good moment to strengthen the customer relationship.

Outsourcing Invoicing with Payt

Why choose Payt? Payt is more than just invoicing. Payt is a complete debtor management software that allows you to keep everything in your own hands. Electronic invoicing is possible, and you can also do an automated follow-up. Payt automatically starts a reminder process where you retain full control. From the first outstanding invoice to the last reminder. With this feature, you can save up to 80% of your valuable time. You don’t have to keep track of which outstanding invoices need a reminder and send them yourself. Our software takes care of everything for you. Are you already using an accounting package? No problem! Payt can be linked with various integrations, such as Exact Globe or Exact Online.

Do you have questions about outsourcing invoicing or our software? Feel free to contact us. We are happy to advise you.

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By Aida Kopijn

Aida is an accounts receivable management expert at Payt, known for her precision and organisational passion. She ensures every process is perfectly managed and optimised.

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