Avail Accounts Receivable Service and Improve Your Cash Flow

Posted by Praveen Pandey
3
Jan 29, 2021
428 Views
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Accounts Receivables are a vital part of a business. No matter how good is the total billing figure of any business, it cannot strive successfully till all bill dues are collected and there is a steady cash flow.

Although accounts receivable is a very important function, often this function does not get its proper focus due to the non-availability of any dedicated resources for focusing on this. Most companies use their available staff from accounts or sales to do the accounts receivable management. The downfall of this is as follows:

Why in-house staff cannot manage Accounts Receivable effectively?


·        Salesforce or accounts doing accounts receivable management will either neglect this function in favor of their core function. Or they will neglect their core function and run after accounts receivable.In the process, their core function will get neglected.

·    Accounts Receivable Management requires knowledge of techniques and tactics that are not known to these in-house staff.

·        Not having a dedicated staff to look into this function may result in not having a proper track of the accounts receivable and received.

So, there is a need for dedicated trained staff for managing accounts receivable. However, not all organizations can afford to hire a dedicated staff who has the required expertise as this becomes an expensive option. Hence, the best option is to go for account receivable outsourcing.

Accounts Receivable Service

Accounts Receivable Service is provided by outsourced companies who have the expertise of Accounts Receivable Management. The accounts receivable outsourcing companies have a team of staff who are highly experienced and know all the techniques and tactics to apply for collecting the dues from the client. Some of the Accounts Receivable Services provided by them are -

·         Sales orders processing

·         Invoicing and billing

·         Invoice receipt verification

·         Collection services

·         Payment Follow-ups

·         Payment Reconciliation

·         Customer reconciliation

·         Recording receivable transactions into the accounting system

·         Tracking revenue generation

·         Resolving any related issues

·         Bad Debts Management

·         Delivering customer financial statements

Improving Accounts Receivable Collections

Let us now look at how account receivable services help in improving accounts receivable collections -

·   Maintaining proper track of Accounts Receivables: Accounts receivable outsourcing companies maintain proper records of all receivables as well as what has been received. This ensures that none of the receivables are missed out 

·   Proactive Follow-up: Companies providing accounts receivable service have dedicated staff to do the receivable follow-ups regularly which increases the chances of getting paid more quickly.

·      Customer Screening before contract: To ensure that the customer pays, it is better to do the due diligence of the customer’s credit record. An account receivable outsourcing company can help in doing this.

·  Upgrade Accounts Receivable Process: Companies providing accounts receivable service use advanced electronic billing processes and also other customer-friendly options which makes it easier for them to collect the receivables easily.

Conclusion

Opting for accounts receivable service can be beneficial for the company in collecting their dues from the customers faster resulting in improved cash flow and better financial health.

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