The decision to outsource any function in an accounting or legal firm should not be made lightly. Outsourcing of functions such as payroll, bookkeeping, HR and IT support are very common however more and more firms are looking at other areas of their practice where it makes sense to outsource. One such area that FeeSynergy is increasingly being asked about is outsourcing of Accounts Receivable (AR).
In accounting and legal firms, the Accounts Receivable function typically sits within the finance team. In larger firms, the responsibility for chasing and collecting cash rests with a Credit Manager and their team. In smaller firms the responsibility often rests with admin staff as an add-on to their other day to day duties. These staff may or may not have the level of skills required to “have the difficult conversation” with the firm’s clients who are slow to pay. Inevitably, many cases will end up with the partners to follow up.
Irrespective of the size of the firm, good credit management processes and suitably skilled staff are essential to ensure clients pay their bills within the timeframes of the firm’s credit policy.
Like all outsourcing arrangements, there are “For” and “Against” arguments for every firm to consider
For:
- We don’t have suitable Accounts Receivable skills inhouse
- We don’t have a credit manager
- We can’t afford a full-time credit manager
- The partners don’t like chasing clients to pay
- We have skilled Accounts Receivable staff however they can be better utilised in other areas of the firm
Against:
- We are always on top of our debtors and our average debtor days are below 30 days
- We have an automated system to follow up debtors and all of our clients always pay us with our standard 14 days terms.
- We love nothing more than chasing our clients to pay 😊
- We view Accounts Receivable as a core competency that should be retained inhouse
In most firms, elements of both For and Against will apply. However, when weighing up the “For” and “Against” for firms using FeeSynergy Collect, the decision can be a relatively easy one.
FeeSynergy Outsourced Accounts Receivable Services
FeeSynergy is proud to be able to offer outsourced Accounts Receivable services to accounting and legal firm clients in both Australia and New Zealand. We are able to offer this service because (through Collect) we have real-time access to the firm’s debtor ledger and all the necessary client contact information without having to access the firm’s practice management system. This access provides the ideal platform for FeeSynergy to bring a professional and cost-effective Accounts Receivable outsourcing service to our clients.
Subject to the agreed rules and procedures, they will facilitate collection of moneys owing to the firm without harming the provider-client relationship:
- follow up phone calls
- negotiating payment plans
- take credit card payments over the phone
- timely escalation to partners or managers for instruction
- monthly reporting
- facilitate legal debt recovery action
FeeSynergy’s Accounts Receivable Outsourcing Service completes the end-to-end debtor management process made possible by FeeSynergy Collect debtor management platform. For further information please email hello@feesynergy.com.au
