We defined what an invoice or a bill really is and a listing of some of the components of a billing process. https://faoblog.com/processes-ar-billing-3/
Synergies with AP
Now if you really look at the other side of the coin, what a billing process is for your client, will actually be a purchase process for your client’s customer, making it a part of his Accounts payable function. Interesting isn’t it? I have seen a lot of people in the back office industry unable to correlate these two functions, especially when they are hiring for the billing processes. Ideally, someone who has worked on processing vendor invoices does have an orientation and understanding of billing pieces. The person just needs to be smart enough to visualize the other side of the story.
Then why do client’s ask for specific billing resources?
The key lies in the nature of the business. There might be some critical aspects to your client’s business, which he would be looking at. So why don’t we have a look at some regular types of businesses?
In the US and UK geographies, one very large business type which has been either outsourced or moved to the back office is the insurance business, both on information technology and process sides.
Various types of billing that we are familiar with are for manufacturing industries, comprising of sale of the products manufactured.
The billing process in these two types will surely be different, and most of the people will clearly understand the second type.
Most of the time we will get processors who will fundamentally understand this.
I will continue this discussion in the next post.