Telecommunications is big business these days, with plenty of opportunity for companies of any shape or size. From cell phones to landlines to the Internet and cable, telecom companies provide their customers with the services they need and want.
One goal for virtually any company is growth. It’s no different in the telecom industry. Everyone in the industry thinks about enticing customers to buy additional services or open new accounts.
New accounts and larger accounts alike translate into one thing, however: A need for better ongoing accounts receivable and payable management.
The Need for Management
The more accounts your company has, the larger the task of managing accounts receivable and payable. You need to keep track of which customers owe you what and who has already paid.
This work is ongoing as well. Most of your customers pay on a monthly schedule. You might receive payment for one month’s bill and settle it just before it’s time to issue the next one! There are also the obvious complications of customers who pay late or fall into arrears.
It goes without saying that accounts receivable management is a big task for any telecom company. While a small company may have fewer accounts, it’s still all hands on deck when it comes to effective accounts receivable and payable management.
Becoming More Efficient
If you’re in the telecom industry, you’ve probably realized the advantage technology gives you. New communications technologies allow people to connect with each other quickly and easily. They also let you manage accounts receivable more efficiently.
A great example is text messaging. Some telecom companies already employ this technology in sending out bill notifications and reminders to their customers. Others use email, and still others have online payment systems their customers log in to.
Using technology this way streamlines the accounts receivable and payable process, particularly on the payment front. Technology helps on the back end as well, as you generate invoices automatically and allow automated monitoring of which accounts are paid and which ones are in danger of becoming overdue.
The Human Touch
Using technology is an excellent way to streamline your accounts receivable process and make it more efficient. It doesn’t eliminate the need for human beings, though. You’ll still need a team of dedicated, experienced, and knowledgeable people to manage accounts receivable and payable effectively.
These are the people your customers can contact if they have trouble paying their bills if the online system is down, for example. They review customers’ bills, especially if the customer questions a charge. They’ll also answer queries about services, assisting your customers as they figure out what they really need. They’ll help create and save customer relationships.
Humans are also an important component early on in the accounts receivable and payable process. They review credit applications and determine who you should extend credit to. They’ll communicate these decisions to potential customers. They’re also instrumental in communicating service changes to your existing customers.
Outsource to Alleviate Pressure
Even with a team of experienced people using the latest technology, your telecom company might still struggle with getting truly effective accounts receivable and payable management. For some, it’s a case of having too many accounts for the number of people you have on the job. For others, the issue is the need for more advanced technology, but the inability to spend the budget to get it.
Effective management of accounts receivable and payable might seem to be at war with cutting overhead costs. It doesn’t need to be. Instead, look to outsourcing to alleviate pressure in your accounts receivable department. Not only will an outsourcer give you access to the latest technology, but they will also help you achieve a more efficient process for managing this task.
You have plenty of options for getting the effective management of accounts receivable and payable on an ongoing basis, which is exactly what your company needs.