What is AR Outsourcing?

Accounts Receivable (AR) outsourcing involves delegating the management of outstanding invoices, collections, and cash flow optimization to a third-party provider. This helps businesses improve efficiency, reduce costs, and accelerate revenue collection.

Key Services in AR Outsourcing

? Invoice Generation & Distribution – Automating and sending invoices to customers.
? Payment Processing – Handling multiple payment methods, including ACH, credit cards, and wire transfers.
? Collections & Follow-ups – Proactive tracking of overdue accounts through emails, calls, and reminders.
? Dispute Resolution – Managing and resolving billing disputes quickly.
? Credit Risk Assessment – Evaluating customer creditworthiness to minimize bad debt.
? Reporting & Analytics – Providing insights on cash flow, outstanding invoices, and collection trends.

Benefits of Outsourcing AR

✅ Improved Cash Flow – Faster collections reduce days sales outstanding (DSO).
✅ Reduced Operational Costs – Saves money on in-house staffing and technology.
✅ Enhanced Compliance – Ensures adherence to financial regulations.
✅ Better Customer Experience – Professional invoice handling and dispute resolution.
✅ Access to Technology – Leverages automation, AI, and analytics tools.

By outsourcing accounts receivable to Back Office Accountants, you avoid the expenses of setting up a dedicated Accounts Receivable department and all overhead expenses like training, office space, employee benefits and other overhead expenses that come with it. Add this to the automated manual processing which collectively saves a lot of time and money while accruing all the benefits of having an efficient Accounts Receivable function for your business.

The longer a business takes to collect an overdue amount lower becomes the chances of collecting them and the only way to improve your collections is adopt a streamlined AR process that is set forth after careful Receivable analysis. If you are a business that is not perfectly equipped with an Accounts Receivable department to expertly manage all the receivables and accrue all the benefits, outsourcing Accounts Receivable is the best way out to improve your cash flow, working capital, reduced costs and focus on your core businesses functions.