Outsourced Accounts Receivable Services Frequently Asked Questions Answered.pptx

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Outsourced Accounts Receivable Services
Frequently Asked Questions Answered
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When a company chooses to outsource their AR
services, they are handing over this specific
accounting task to a third-party service
provider. This approach can help the business
obtain an effective credit control system while
still being able to focus on the core functions
of the business. The advantages of outsourcing
your accounts receivable include
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?An Integrated Collection System
?Lower Administrative Costs
?Streamlined Processes
By outsourcing AR services, you gain access to a
dedicated team. This ensures better efficiency
and accuracy in your accounts.
With an in-house accounts receivable staff, you
have to hire them, train them, and maintain their
salaries and daily operations. Outsourcing
accounts receivable services is considerably less
expensive and takes up less staff time. This will
let them focus on more value-adding functions
that encourage business growth.
An experienced outsourced accounts receivable
service provider can effectively integrate and
minimize issues caused by overdue accounts.
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2. Is outsourcing my AR services secure?
Outsourced accounts receivable companies are
adept at securely storing, accessing and legally
complying with the destruction of confidential
data. They invest in the latest technology,
firewalls, training, and encryption to ensure
their clients data remains safe.
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3. Should I worry about the accuracy of the
services delivered by outsourced accounts
receivable service providers?
When searching for and comparing AR service
providers, take a look at reviews from previous
clients. This will help you get a clear idea
about the services they provide and how well they
deliver them. Once you have chosen a service
provider, its important to contractually agree
on the services being delivered and key
performance indicators before beginning your
project. This ensures that you both stay on the
same page in terms of what each of you can expect
from the other in terms of deliverables. The
result is no surprises.
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4. Is the outsourced accounts receivable service
provider responsible for monitoring customers
with a poor payment history?
Generally, no. It is however their job to run
monthly aging reports and follow up with
customers who have outstanding invoices.
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5. Why is outsourcing accounts receivable
management important for business functions?
Every business knows the importance of having
cash on hand. And while closing a sale is good,
you need to receive the cash to invest it back
into the business. Converting credit sales into
cash is one of the main functions of outsourced
accounts receivable providers. If your businesss
collections are efficient, you can recover cash
quickly. Also, your suppliers are an integral
part of your business and paying them in a timely
manner is important. Without a properly-managed
accounts receivable system, your business will
experience cash flow problems which may cost you
time and money. But with a third-party outsourced
accounts receivable company, these
responsibilities will be taken care of.
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Thank you
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