Benefits of Accounts Receivable Services

1. Upgrade Your Accounts Receivable Process: Outsourcing accounts receivable services often comes with access to advanced electronic billing and payment methods. This not only accelerates the payment collection process but also provides a convenient and customer-friendly experience, improving your cash flow.

2. Reduce Time and Cost: Managing accounts receivable in-house requires investments in time, money, and resources. Outsourcing allows you to focus on your core business activities and pay only for the services you need, leading to significant cost savings.

3. Focus on Core Business Operations: Delegating accounts receivable tasks to experts enables you to dedicate more time and energy to growing and improving your core business operations. Outsourcing ensures that your financial processes are in capable hands, allowing you to concentrate on strategic initiatives.

4. Effective Customers' Screening: Accounts receivable service providers are skilled at evaluating the creditworthiness of customers. This expertise helps in setting clear credit policies and identifying customers who are more likely to make timely payments, reducing the risk of bad debt.

5. Faster Collections: Timely collections are vital for maintaining a healthy cash flow. Outsourcing accounts receivable services ensures that overdue amounts are collected promptly, mitigating the negative impact of delayed payments on your organization's finances.

6. Cash Flow Improvement: By streamlining the accounts receivable process and ensuring swift collections, outsourcing contributes to improved cash flow. This, in turn, provides your organization with greater financial stability and flexibility.

7. Expertise: Accounts receivable service providers have a team of experienced professionals who specialize in managing and optimizing the collection process. Their expertise can lead to more effective and efficient debt recovery.

8. Technology and Automation: Outsourcing partners often employ advanced technology and automation tools for invoice tracking, reminders, and payment processing. This reduces manual effort and minimizes the chances of errors.

9. Resource Allocation: Outsourcing frees up your internal resources that would otherwise be spent on administrative tasks. These resources can be redirected toward tasks that directly contribute to your company's growth.

10. Risk Mitigation: By analyzing and managing credit risks, accounts receivable service providers help mitigate the risk of non-payment, allowing your organization to make more informed decisions about extending credit to customers.

Steps involved in the Process of Account Receivable Services

What is Invoicing and Billing?

1. Timely Payments and Invoicing:

   • Highlighting the importance of timely payments and the impact on cash flow.
   • Addressing potential issues where invoices might be absent or delayed, affecting payment schedules.
   • Promoting the establishment of a systematic workflow to ensure accurate and timely submission of invoices to clients.

2. Customer Accounts Reconciliation:

   • Emphasizing the need to monitor receivables regularly and follow up with clients for on-time payments.
   • Mentioning the importance of avoiding problems related to late fees or short payments.
   • Describing the practice of sending accounts statements to clients periodically to facilitate prompt payments.
   • Noting that a dedicated team works closely with the client's contact to update and manage accounts.

3. Business-to-Business Collections:

   • Recognizing the challenge of dealing with past-due receivables and the need for a proactive approach.
   • Suggesting consistent communication with customers for various reasons, such as product feedback and service updates.
   • Outlining the process of engaging with clients to address overdue payments, including sharing aging reports, identifying delays, and implementing controls.

End-to-End Accounts Receivables Services from Legalitis

1. Sales Order Processing: Efficiently handle incoming sales orders, ensuring accuracy and prompt fulfillment while maintaining clear communication with customers.

2. Bookkeeping: Maintain accurate financial records, track transactions, and organize financial data to facilitate informed decision-making.

3. Invoicing and Billing: Generate clear and comprehensive invoices for products or services rendered, including details of charges and payment terms.

4. Invoice Receipt Verification: Thoroughly review incoming invoices to ensure accuracy and consistency with agreed-upon terms before processing.

5. Invoice Reconciliation with Payments: Match received payments with corresponding invoices, ensuring proper reconciliation and accurate recording of financial transactions.

6. Monthly Open Balance Statements to Customers: Provide regular statements to customers, summarizing outstanding balances and transaction histories for enhanced transparency.

7. Debtor Aging Report Preparation and Processing: Prepare detailed reports categorizing outstanding debts by their age, aiding in strategic planning and proactive follow-ups.

8. Payment Follow-ups: Initiate timely communications to remind customers of upcoming payment due dates and facilitate on-time settlements.

9. Credit Memo Processing: Manage credit memos for valid reasons, such as returns or adjustments, ensuring proper documentation and accurate accounting.

10. Customer Reconciliations: Regularly review and reconcile accounts with customers to address discrepancies and maintain accurate financial records.

11. Credit Control Tools with Continuous Monitoring: Utilize tools and processes to monitor credit limits, assess creditworthiness, and proactively manage credit risks.

12. Customer Help Desk: Provide responsive customer support, addressing inquiries and concerns related to billing, payments, and account balances.

13. Dispute / Chargeback Management: Handle and resolve disputes and chargebacks promptly, maintaining clear communication and ensuring fair resolutions.

14. CST C-forms/ GST Form Collection: Collect and manage required forms for tax compliance, ensuring accurate documentation and timely submissions.

15. Bad Debts/ Delinquency Management: Implement strategies to manage bad debts and delinquencies, aiming to minimize financial losses and maintain healthy cash flow.

16. Recovery Suites Handling: Manage recovery processes and suites, utilizing strategic approaches to recover outstanding payments effectively.