Reconciling accounts can take a lot of time, and that gets amplified when it comes to your accounts receivable. Even when you have an effective accounting system in place, sometimes it takes real resources to get your customers and clients to settle their outstanding invoices.
No matter how good your automated systems are, there’s nearly always a need for humans to speak to humans in the accounts receivable process. For some outstanding invoices, a combination of email reminders and phone calls is needed to get them paid. You may also need to discuss payment plans with the debtor if they’re unable to pay the whole amount upfront.
Is managing your accounts receivable in house the best choice, or should you outsource? We explore why outsourcing may make better business sense.
It Costs Money To Make (and Get) Money
The Australian Tax Office (ATO) estimates that a single invoice can cost businesses up to $30.00 when you factor in all resource expenses. Staffing costs account for a significant portion of that figure. That’s just generating the invoice and doesn’t factor in expenses related to accounts receivable follow up when the electronic reminders haven’t been actioned by your debtors. Even when you have an in-house accounts team, accounts receivable tasks are not always the best use of their time.
Debtor Management Needs Specific Skills
Managing the relationship during the accounts receivable process can be both delicate and difficult. Actually having those conversations with customers who owe money and haven’t taken action via automated reminders isn’t something that all staff are comfortable with either. Outsourcing your accounts receivable takes that pressure off your team, ensures that outstanding bills don’t lose you customers, and above all else, gets that money coming in for your cash flow.
You Have More Important Staffing Needs
Be honest. If all of your customers paid their bills on time, would a dedicated accounts staff member be the first role you’d add to your growing company? And if you don’t hire an extra set of hands, do you really want to take over accounts receivable yourself? We often speak to business owners who need more than a bookkeeper, and assume hiring in-house accounting staff is the only option available. By exploring outsourcing options, you often still have room in the budget to hire staff who can help with your growth and expansion in more effective ways.
You Can Access Credit Management Professionals
Accounts receivable tasks often have regulations and requirements associated with them that need to be followed stringently. Even though you’re only requesting your money, there’s still important protocols to be aware of and adhere to. Companies like FeeSynergy don’t just have experienced staff, they have qualified team members who have an in-depth working knowledge of the rules, guidelines and laws relating to debt payment and collection.
FeeSynergy offer a professional, affordable accounts receivable outsourced solution. Our Collect service packages have been developed to help everyone from a sole trader or startup through to a large enterprise and include everything you need such as:
- Follow up phone calls to your debtors
- Negotiating payment plans that get you paid in full sooner
- The ability to immediate process payments over the phone
- Support from our team of managers and partners who can guide and manage escalated or complex situations
We don’t treat you like we’re separate to you, we see ourselves as part of your team. Get in touch to discuss how we can start working together.