Accounts Receivable Management Services
For a business to survive as it grows, it needs to be able to manage its cashflows. A lot of businesses have trouble with their cashflows when they begin scaling. This is due to the fact that businesses often don’t have enough resources to scale their cash flow management capabilities along with the rest of their operations. This leads to their cash flow management being overburdened. And when this happens, a business’s growth can suddenly come to a halt.
Managing your accounts receivables is a crucial part of keeping your cash flows streamlined. Well-maintained accounts receivables prevent a majority of your business’s outstanding invoices from turning into bad debts. Most businessmen are acutely aware of how important financial management is for a business. But a lot of businessmen face trouble when it comes to taking steps to update and scale their accounting capabilities.
This is because scaling your accounting capabilities is a resource heavy task. You need to invest in software and also in human resources. Not everyone has the resources needed to fuel their business’s growth and also focus on their accounting management. This is precisely why outsourcing financial activities has become so popular.
Why are Accounts Receivable Important?
Simply put, accounts receivables are basically money that a business is owed by its customers for goods and services that it has provided to them. Accounts receivables play a major role in determining your company’s profitability since they are indicators of money coming into your business.
Businesses with poor accounts receivables management will have a harder time keeping track of what payments need to be recovered. Mismanagement can end up disrupting your cashflows and decreasing your profitability as well. In order to manage your accounts receivables, you need to maintain them on a regular basis. You also need to record all relevant documentation as proof. Managing your accounts receivables can be a very tiresome task. And the slightest oversight can lead to your business losing money.
What is Accounts Receivable Outsourcing?
Outsourcing your accounts receivable management to third party companies has become a very viable option for businesses nowadays. Outsourcing to the right third party allows businesses to scale their accounting management to meet their needs without actually having to dedicate resources to the process.
Digitization has made outsourcing your financial activities safer and also more efficient. You can share your documents and information with any reliable accounting company. They will then process your documents while observing the latest accounting standards. There are a number of benefits that businesses can reap when they decide to outsource their accounts receivable management.
Benefits of Outsourcing Accounts Receivable Management
- Your accounts receivables will be maintained on a regular basis with all the latest accounting standards being observed.
- Your paper-based documents will be digitized
- Your cashflow can increase due to better recovery rates
- Delinquencies can be minimized
- Unapplied credits can be eliminated
- Operating costs can be brought down
- The speed and flexibility of your accounts receivable process can increase
- Having your accounting documents digitized will help you better analyze your data and gain useful information that can help your business.
Services to Expect when Outsourcing Accounts Receivable
A great bookkeeping firm can help you streamline your cashflows and help you maintain your business’s health as it grows. Bookkeeping firms offer a wide range of services when it comes to accounts receivables management:
- A/R Aging Report Generation
- A/R Factoring
- A/R services for Real Estate Businesses
- Preparation for billing and mailing
- Recordkeeping of revenue
- Data entry of receivable transactions
- Preparation and delivery of periodic statements
- Preparation of A/R reports
- A/R deductions management
Businesses can decide to either outsource certain portions of their accounts receivable management or entrust their agency with the entire process. Apart from the services listed above, agencies also help businesses manage their finances while keeping up with the latest best practices. Businesses can also reap the benefits of having their accounts receivables managed with any accounting or ERP software without actually having to pay for it.
The hardest part of outsourcing your accounts receivables is to pick the right accounting firm. Since accounts receivables are important for a business, you need to pick a capable firm to work with, one that you can trust to have your back.
Why Push Digits Chartered Accountants?
Push Digits is a veteran when it comes to accounting and bookkeeping related services. Push Digits has experience in managing accounts receivables for companies from all over the world. Thanks to this, Push Digits is able to understand every client’s requirements quite well and provide them with services that fulfill all their needs. With Push Digits helping you manage your accounts receivables; you can focus on growing your business without worrying about your financial management. Push Digits can help you with:
- Increase recovery rates and streamline your cash flows
- Increase the overall efficiency of you’re A/R management
- Digitize all you’re A/R documents and make them available on a common web browser for easy access
- Improve customer loyalty by improving your business’s response times
- Developing account handling programs especially for your business.
- Keep your accounting practices updated by employing the latest trend being used in the finance industry
Push Digits can help you cut costs, improve efficiency, increase profitability, and help you stay up-to-date with the rest of the financial world.