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.

What are Accounts Receivable Services?

Accounts receivable can be defined as one of the many accounting transactions. Accounts receivable services deal with the billing of customers who owe a certain amount of money for the services/products bought from an organization, company or individual. In most organizations, accounts receivable services are carried out by generating an invoice and then sending the same to the customer.

After the customer receives the invoice, he/she must pay the amount within the time period, which is known as payment/credit terms. Some of he most common payment terms are Net30 which means that the amount should be paid within a 30 day period, Net45 which states that the amount is due within 45 days and Net60 which means that the customer should pay the amount within 60 days.

On every company’s balance sheet, accounts receivables will be the amount that customers owe to a particular company. In the journal entry in the balance sheet, the receivables are marked in the debit column ad the revenue account is marked in the credit column. After the customer pays the amount, the cash is debited and the receivables are credited. The balance on the trial balance sheet for accounts receivables is always debited.

Large business organizations use accounting software to perform accounts receivable services. Organizations allocate an allowance for bad debts, because they might not be able to collect all the debts from customers. This bad debts allowance will be subtracted from the total accounts receivable.
Accounts Receivable Services

• Applying cash received to customer accounts Resolving short pays


• Entering receivable transactions into a accounting system


• Preparing bills and mailing them after the customer's approval


• Maintaining records and accounts for revenue


• Preparing and delivering statements periodicallyIssuing of refund checks and credit memos to be approved by the customer


• Maintaining subsidiary receivables ledgers


• Making process adjustments approved by the customer

Accounts Receivable Software

• QuickBooks


• CheckMark


• MultiLedger


• M.Y.O.B