Guide to selecting a global Accounts Receivable service

What Is accounts receivable and how receivable management services work? 

Some businesses offer their goods and services on credit for a specific period. This means they deliver their products to customers and allow them to pay later – after they receive the product/service. 

Accounts receivable (AR) refers to the money your business has a right to receive in return for goods and services you’ve delivered, but your customers still need to pay for.

It also refers to the process of creating, sending, and tracking customer invoices to collect any amount your customers owe you. Often, this process is time-consuming, and most businesses prefer outsourcing the entire AR process. This is where third-party accounts receivable management services come in.

AR management services handle your business’ receivables and debt collection processes. These AR solutions streamline and automate your customer invoices, payments, and collections processes. 

They also improve your customer payment collection activities and increase your business’ revenue by keeping track of customers and sending automatic reminders about unpaid invoices. Your AR service team will communicate with your customers and follow up with them consistently to ensure timely payment and minimize the likelihood of default. 

Outsourcing AR services can also help reduce financial losses and increase profit margins by reminding customers to pay timeously. 

Outsourcing AR: 9 benefits of outside accounts receivable services

Now that we understand what AR management services are, let’s take a look at some of the benefits of outsourcing accounts receivable services.

Save costs

Outsourcing your accounts receivable services instead of having in-house accountants saves your business valuable time and money. You won’t need to go through the time and expense of hiring and training staff members to manage your accounts and debt collections.

By outsourcing your accounts receivable processes, you will pay a low monthly fee for a third-party service to streamline tedious, time-consuming tasks that would usually require several of your employees. This means your employees can focus on other work. 

Access more resources without increasing headcount

Accounts receivable services give you access to several different resources under one roof without hiring more staff to fulfill different roles. The service provides invoicing, billing, and debt collection services.

It should also provide a user-friendly system to efficiently manage funds and keep track of money coming in and money going out.

Integrate different business systems

The right AR service will seamlessly integrate into your existing ERP solution and business systems. This is essential in order to minimize cash flow and other accounting process issues.

As a result, the business systems that you know and trust remain the same and your AR service will work alongside these systems.

Fewer accounting and financial errors

With outsourced AR services, you can rest assured that there is a dedicated team taking care of your AR processes. A third-party service provider will have the necessary tools and technology to ensure accuracy and reduce the risk of errors. Overall, this can help to improve the accuracy of your financial records and give you a true view of your business’ finances.

Better payment collection system

With outsourced AR services, you’ll have access to a one-stop shop for all your payment collection needs. Different services provide sophisticated invoicing and collection systems that ensure you receive timely payments. This includes sending reminders and payment notifications automatically to nudge customers to pay. 

Precise analysis of customer’s creditworthiness

Assessing your customer’s creditworthiness can be arduous and expensive but you shouldn’t take it lightly. Accounts receivable services provide clear and accurate analyses of potential customer’s creditworthiness.

With this data, you can only take on customers with good scores who can pay for your goods and services.

Build a transparent financial ecosystem

Outsourcing your AR services gives you access to an essential aspect of your business – accurate financial statements. With access to accounts that show your cash flow in real-time, you can build the perfect transparent financial ecosystem for your business to flourish.

How to select the right accounts receivable service provider

To enjoy the benefits of accounts receivable service providers, you need to choose the right one for your business. Here are a few factors to consider:

Good reviews

Reviews don’t lie. As your accounts system is one of the most important aspects of a successful business, always look up your top three options for service providers and compare their online reviews. Choose the one with the best reviews and even take the time to approach their current clients to see if that specific AR service provider is the right fit for you.

Secure systems

When dealing with money, especially online, you need to ensure that your AR service provider has secure systems in place. This includes checking the security measures they’ve taken to protect customers’ personal information and account details.

Global payments

Ensuring your AR service provider can handle international payments before partnering with them is critical. They must be able to receive and manage global payments so that your business isn’t limited.

A provider like Payoneer offers global payment and account management options to ensure your marketplace has no boundaries.

Automation

You want to make sure that you choose an accounts receivable service with automated features. By automating the process, you save a significant amount of time. In addition, automated systems are highly accurate. You can eliminate the risk of human error and duplicate work from your processes. 

Manage your accounts receivables with Payoneer

Outsourcing AR services can be an intelligent business move, saving growing businesses on costs and time. Plus, it provides a one-stop shop to manage all aspects of your accounting locally and globally.

To automate your accounts receivable processes and make things easier for your accounting team, check out Payoneer. We make it easy for freelancers, entrepreneurs, and businesses to manage customer payments. 

With Payoneer, you can track all payments easily and set payment reminders for customers so that you get paid on time. You can also connect your Payoneer account with QuickBooks accounting software to make tracking payments easy. You can also eliminate tedious data entry by syncing payments automatically. This simplifies and streamlines the way you manage your accounts receivable and accounts payable transactions. 

Keep your business running smoothly by managing your accounts receivable with Payoneer today.