How Company Billing Has Come Up To a New Era

The choice of the billing method used by a service company is strategic because its repercussions are multiple. Yet, the latter is often dictated by customers, or even by the customs and customs of the market. Here is a short guide to the advantages and disadvantages of different billing methods to help you get your hands back.

The control

The régie is the historical billing mode for SMEs in the service sector . It designates all the offers for which each day spent by the service provider will be invoiced at a daily rate agreed in advance, whether we are talking about the accomplishment of a given mission or whether it is a delegation of staff to overcome an excess of activity for example. In addition, the management is often accompanied by a commitment of means.

Main advantage: simplicity

The management enjoys a particularly simple management. Each day of service is a billing day. It is then very easy to establish a forecast, the future CA resulting directly from the planning. You can also take the help of a factoring company in this case now.

Disadvantage: a quantitative approach

In-house billing is based on quantities of time that are billed directly to the customer. It is in this sense that it is not very “challenging” for the service provider: nothing encourages him to carry out the tasks entrusted in less time than initially planned. Financially, this can also be a risk for the client who will have little control of the overall financial envelope.

The package, a billing method that is progressing

Fixed-price billing is increasingly popular with service companies that are entrusted with a customer’s entire project. The package is based on a commitment by the provider to perform a mission and for a price fixed in advance, which cannot vary. Usually accompanied by a constraint in terms of time, the package is usually accompanied by a commitment of results.

Advantages: the customer controls the cost, reactivity is boosted

Customers appreciate this billing method which guarantees them control over the overall cost. Precise timing promotes intensive and coordinated team mobilization.

Disadvantages: pressure and complexity of analysis

This billing method induces a financial risk for the service provider, who can vary greatly the margin of his project according to his uncertainties. The package therefore causes increased pressure on employees. Pressure that can be counterproductive if it is too important.Moreover, the estimation of the progress of the CA is more complex especially in case of mixed mode, mixing package and governed.

 

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