Bringing in outside accounting help into your company frees up a great deal of time for your employees.
The outsourcing industry is equipped with different services that are very helpful in promoting a business’ growth and productivity. However, today’s market world has gotten more cutthroat than ever before. With the exceeding demands from the business industry, stakeholders have to effectively utilize both their time and resources in a manner that will lead into a sustainable business development.
Having said that, outsourcing financial services like accounts receivable is one of the efficient ways of reducing both human resource and costs.
Accounts receivable services
Accounts Receivable (AR) is one type of business function that consumes considerable time on your staff’s daily tasks. It refers to the money owed by a third party, specifically, your customers, to your organization. These are usually payments for your products or services that your customers have purchased on credit.
Note that your accounts receivable is treated as a current asset in your balance sheet instead of a revenue account.
Outsourcing your accounts receivable allows you to reduce your cash collection shortages and bad debt write offs. It also helps your business to have a more effective credit control system and obtain healthier accounts by minimizing your revenue costs.
In most cases, outsourcing providers include the following in their accounts receivable services:
- Order management
- Customer billing
- Cash management
- Credit
- Collections
- Bad debt analysis
Three questions to ask before deciding to outsource your accounts receivable
Outsourcing your account receivable means that you are handing over this specific accounting task to a third party. Nevertheless, despite the given perks of the outsourcing practice, outsourcing your AR may also cause unfavorable effects if not done properly.
Here we have three guide questions to help you determine whether outsourcing your accounts receivable is a good step towards your business growth:
How will it help my business?
In choosing your outsourcing provider, you can ask them how they can bring more value to your business. Note that in terms of its advantages pertaining to cost, it will usually depend on the size of your business and your overall transactions. More so, outsourcing your accounts receivable will generally help you streamline this process and improve your business’s overall productivity.
Is the BPO firm’s solutions customizable?
You have to choose an outsourcing firm that fits your type of business requirements. Not only that, your outsourced accounting staff should also be able to grow with your company and of course the other way around.
What security measures will be in place?
Outsourcing your accounts receivable means that you will also be sharing your financial data to a third party, outside your company. That will always pose risks in your part no matter what size of company you are. This is why it is vital that you ask what security protocols they will be implementing to maintain the security of your financial data.
Bringing in outside accounting help into your company frees up a great deal of time for your employees. Having to contact, trace, follow up, and negotiate with your customers takes much of your staff’s precious time.
Outsourcing your accounts receivable to accounting experts like OP360 allows you and your in-house staff to focus more on your core business. Outsourcing this part of your accounting allows you to reduce your operational costs and overheads, at the same time strengthening your overall efficiency.
