Accounts receivable management is one of those unavoidable parts of any business: You have to get paid, right? Whether it’s generating invoices and sending them out, or simply reminding customers about overdue payments, it’s inevitable you’ll need to deal with this task on a consistent basis.
But it’s also not a small job, no matter the size of your business. Whether your firm is large or small, or somewhere in between, there are plenty of advantages to outsourcing.
1. Free up Talent
Small businesses often ask people to wear multiple hats: You, as CEO, might also be the bookkeeper and the marketing manager. With so much on your plate, you might find it difficult to find the time to deal with accounts receivable—even though you know it’s a vital task for your company.
Chances are anyone you hand the task to will also run into the same problem: Their time and effort is best spent elsewhere. Unless you work in a fairly large firm with a dedicated accounting department—perhaps with someone whose sole job is to deal with this task—most companies will find they could put their employees’ talents to better uses.
Outsourcing allows you to do just that by turning the task over to someone outside the company. In turn, you can get back to the things that really matter to you.
2. Free up Time
Much like outsourcing accounts receivable frees up your talent, it also frees up your time. Accounts receivable can be a fairly time-consuming task! Larger businesses may struggle to keep track of all the accounts and payments, while smaller companies might not have the staff to keep up.
Instead of spending inordinate amounts of time looking after this task on your own, outsource it! Not only will you get dedicated team members taking charge, but they’ll also have better tools to help manage the workload. The result: They’ll be able to manage it seamlessly and in a shorter amount of time.
3. Better Tools and Techniques
Since outsourced services deal solely with this aspect of a business, the staff they employ are highly trained in the latest techniques. They also use newer tools, such as automated reminders. Think of telecoms sending out reminders to their hundreds of thousands of customers; an automated text or email could be triggered after so many days after the bill’s due date.
You may not be able to afford the tools to automate those reminder messages—or afford the programmer to make them work. And you definitely don’t have the capacity to sit there and monitor each individual account, then type out an email every time an account is a couple days overdue! You have better things to do. Outsourcing accounts receivable gives you access to the tools that help you manage these tasks.
Accounts receivable service providers also use better techniques to help you locate customers who fall off the map.
4. Better Customer Interactions
Accounts receivable, for the most part, is a routine part of your company’s operations. Sometimes, however, it can become more contentious. Nonetheless, when you outsource the task, your third-party provider will be sure to provide your customers with excellent service all the way through the process—whether it’s sending a gentle reminder email or managing a customer who doesn’t want to pay his bill.
At every stage, your provider will work to ensure the interactions your customers have with your brand are positive, even in the most trying situations.