1st August 2014 Posted by Warren Paull
Companies are continually looking for ways to improve performance and add value. In an economy like today's, which is constraining the growth of many businesses, outsourcing accounts receivable can not only be a lifesaver but prove to add value. Because accounts receivable is often one of the biggest assets of an organization, credit managers must ensure strategic management is constantly applied in order to maintain a proper inflow of cash and maintain a healthy rate of return
Credit managers who chose to outsource their accounts can also benefit from a simplified process. It has the potential to improve workflow, reduce costs and help businesses gain a competitive edge within their markets.
The process of outsourcing accounts receivable is enabling managers to harness automation that goes beyond cost reduction; it is enabling them to access data and insight not previously available. With new software technology being constantly released, business scalability and flexibility to support core business strategies is improving, and more credit managers are taking advantage of it to improve performance and client service via powerful analytics.
Another benefit of outsourcing your accounts is that it allows for better time management. It enables companies to do more with less internal resource and allows credit managers to focus on orchestrating a more strategic approach. At the same time, businesses need to move beyond their day-to-day activities to achieve a more positive outcome. Being able to efficiently and effectively manage working capital along with the shift from tactical to strategic management increases performance and accountability by allowing managers to monitor performance and adjust as required.
Simplifying and standardising accounts receivable processes is a key characteristic of well-run companies, and by utilising all available resources, such as outsourcing, companies can improve revenue and seek new opportunities. This allows them to gain deeper insight into financial data to better understand critical trends that could have an impact in the overall performance of the organisation.