Potential Benefits of Outsourcing Accounts Receivable

Business process outsourcing is back in vogue today. Whether large scale or not, all companies alike are actively seeking to improve their operational efficiencies and turnaround times by hiring outsourcing partners for various business processes.

In fact, in a research conducted by Clutch, it was found that over one-third of small businesses had already outsourced some of their internal processes.

When it comes to accounting, especially, outsourcing can potentially improve your operational efficiency manifold. Let’s see how outsourcing accounts receivable services can help your business make better decisions.

Advantages of Outsourcing Accounts Receivable Process

Accounts receivable keep track of the money that is owed to your business – it is important to know how soon or late a payment would be completed. It, thus, helps immensely to outsource your accounts receivable process to professionals who have the right tools and methodologies to handle it well.

Let’s now see the benefits of accounts receivables outsourcing:

Time Savings

Accounting in receivables is fraught with many mundane tasks, follow-ups, bill processing and invoicing requirements that are mindless.

Investing precious human resources in handling these tasks wastes their time. With accounts receivable outsourcing services, this time of your employees can be saved by bringing in an external team to handle these aspects.

Cost Savings

Outsourcing accounts receivable services to manage your business will save your firm the cost of maintaining an in-house accounting team.

Anything in-house is inherently costly unless its requirement trumps the need to optimise expenditures. Outsourcing helps reduce the administrative overhead of A/R.

Revenue Improvement

Accounts receivable tracks the money owed to your business by others – claiming and receiving these earnings on schedule will help create a revenue stream that truly reflects your actual works and numbers.

Cash-Flow Improvement

Cash flow statements record the inflow and outflow of money from your accounts.

At the end of the year, your financial statements would be impacted if accounts receivable remain pending beyond due dates.

Outsourcing accounts receivable to professional agencies helps get your cash flows in order so the year-end statements can be accurately made.

Improving Customer Service

Another indirect benefit you can gain from outsourcing accounts receivable is improving the quality of customer service. When your revenues come in on time, you can deliver high-quality products and services to your clients in a timely manner.

How to Choose the Right Accounts Receivable Outsourcing Provider?

Adopt the pointers mentioned below to choose the right outsourcing agency for your accounts receivable process:

• Check the reputation: The experience of an agency in the industry does matter, but also check its testimonials and user reviews to understand how well it has performed
• Workflow adaptation: In the end, you want to hire a team that would integrate seamlessly within your workflows and processes. Always ensure the new team is adaptable
• In addition to checking the experience of the firm, check the individual skill level of the team delegated to handle your work. Is their skill level up to the mark?
• Data Security: What measures is the agency taking to ensure the confidentiality of your company’s books? Always ensure that they have a reliable security protocol in place and follow all the legal and lawful mandates
• What is the track record of the agency in terms of keeping deadlines? Keeping accounts receivable tracked to time is important – ensure that the team hired is able to maintain your schedule

Wrapping Up

The advantages of outsourcing accounting receivable are far greater than hiring an in-house team to look after this process. In addition to getting vetted, experienced staff at your disposal, you are saved from spending time, effort and money on hiring a team in-house.

About Us

OHI is a specialized finance and accounting outsourcing service provider with over fifteen years of finance and accounting outsourcing experience. We have strong functional outsourcing expertise in end to end accounting processes covering daily accounting activities, reconciliations, month end and year-end account finalization processes, employee reimbursements, payroll processing, management reporting and financial analysis.

OHI serves close to 300+ clients across USA, UK and Canada. We invite you to experience finance and accounting outsourcing through us.

Learn More About Our Accounting Outsourcing Services – CONTACT US