Improve Your Profits by Outsourcing Accounts Receivable Services

Advantages of Outsourcing Accounts Receivable Services In our technologically advanced business environment, maintaining a strong cash flow is essential for rapid growth and success. This requires that capital as well as credit is readily available to meet the demands of expansion, research, acquisitions, staffing and more. By outsourcing their Accounts Receivable Services businesses can focus on those areas and tasks that hold greater promise for their business and future. The various Accounts Receivable Services that can be outsourced are

- Preparing of bills (as required by TAD)
- Recording and accounting for revenue
- Entering receivable transactions into the accounting system
- Preparing and delivering of periodic statements
- Issuing of credit memos and refund checks approved by the customer
- Maintaining subsidiary receivables ledgers
- Carrying out process adjustments approved by the customer
- Applying cash received to customer accounts
- Resolving short pays
- Preparing credit and collections

Outsourcing companies in India use highly upgraded software such as QuickBooks, CheckMark, MultiLedger and M.Y.O.B. in order to consolidate the printing, mailing and electronic delivery of their Accounts Receivable services. Outsourcing companies also are experienced in the invoice design, formatting, composition and printing of the invoice document. Invoices are custom formatted, according to pre-defined business rules, resulting in documents specific to each customer. The other benefits of outsourcing Accounts Receivable Services include

- Consolidation of print, mail and electronic deliveries from one source
- Immediate access to document images, thereby saving time
- Quality assurance processes, which improve customer loyalty
- Universal repository for all documentation required for customer service
- Any time retrieval of documents and data through a common web browser
- Minimization of delinquencies and bad debt
- Increased cash flow and salvaged revenues
- Reduced processing costs by up to 70%
- Reduced billing support costs and DSO
- Customized inbound/outbound account handling programs
- Accurate handling of data.
- Professional handling and ongoing monitoring of customer disputes and discrepancies
- TQM and other quality improvement programs that ensure continuous improvement
- Confidentiality of data ensuring security
- Cost-effective services and quick turnaround time

With highly efficient staff and ensured customer security, outsourcing of Accounts Receivable Services help businesses to concentrate their effort, time and money on other profitable areas and tasks. The quick turn around time and cost-competitive services provided by outsourcing companies work as an added bonus towards outsourcing of Accounts Receivable Services to India.

The Different Types of Bookkeeping Systems

Outsourcing your Bookkeeping Services needs to India will enable you to get access to high quality bookkeeping technology at a very nominal price. The bookkeeping services offered by Indian companies offer the latest in accounting and employ trained professionals who specialize in different types of bookkeeping such as:

• Single entry bookkeeping
• Double entry bookkeeping
• Online bookkeeping

Single Entry Bookkeeping System

The single entry bookkeeping system is the most simple and uncomplicated system of accounting since all the transactions is entered into a single column. The system is very similar to the way a checkbook register is maintained since the columns are usually for date, description and amount.

Advantages

• Best used for small businesses
• More Columns can be additionally added for different types of revenue and expenses

Disadvantages

• Detailed financial information cannot be included in the spreadsheet
• Exact financial position cannot be calculated
• Mistakes and errors can be identified only through bank statement reconciliation
• There is no link between the balance sheet and income
• Liability and asset accounts, such as inventory, accounts receivable and accounts payable, cannot be tracked
• Individual values are left out since only the difference between the expenses and revenues are calculated

Double Entry Bookkeeping System

The double entry bookkeeping system serves as a boon for large businesses that have lots of assets, thousands of transactions and various external suppliers of capital. In this system, two entries are made for each transaction, one in a debit account and another in a credit account. The columns are categorized as date, account, debit and credit. Therefore, for each debit entry, an equal and opposite credit entry is duly entered. Thus when the accounts are totaled, the sum of all debits must be equal to the sum of all credits.

Advantages

• Mistakes and errors can be easily detected
• Financial statements can be prepared directly from the accounts
• Statements of profit and loss can be accurately calculated
• Assets and liabilities can be included
• Extremely appropriate for large organizations

Online Bookkeeping

The online bookkeeping system provides the customer with the option of storing their business documents, source documents and data in a web based application. This is done so as to enable the offshore provider’s bookkeepers to remotely access these documents and update the accounts as and when is needed. This is accomplished through a software based program, namely, SQL Ledger and QuickBooks.

Advantages

• Accessing your accounts is easy and can be done anywhere and anyplace
• Online bookkeeping services come with high standards of security
• Accounts can be updated as often as required
• Up to 50% of cost saving as compared to your present bookkeeper
• Huge savings on time, effort and resources
• Latest software and infrastructure is used in online bookkeeping

Whatever may be your choice of bookkeeping, outsourcing your bookkeeping services to India will ensure that you receive professional services at the most cost effective price.