New businesses face numerous challenges that larger and established business are not affected by. Managing funds properly is one of the most important aspects that new business owners must focus on, but they also must concentrate on running their business and finding opportunities for growth. Outsourcing accounts receivable is an excellent idea that offers substantial benefits to new business owners like you.
Ensure Prompt Payments
When your accounts receivable system is sluggish, billing is delayed. This often means that your business receives money owed at a much slower pace. New businesses, however, are often much more sensitive to delays in accounts receivable than a larger and established business is. When you allow a third party to focus on this aspect of your business, you may see more reliable and timely income from accounts receivable.
Collect Outstanding Debts
Many businesses struggle with a heavy accounts receivable backlog. Outstanding debts prevent you from managing your business property. It can delay growth, decrease your ability to market effectively and have other negative consequences. With accounts receivable management, skilled professionals can assist with debt collection as needed. This can potentially decrease the backlog and get more of your earned income in your bank account.
When your company is new, you may initially manage accounts receivable yourself. However, you may quickly realize that you need extra help with this aspect of business management. Hiring a dedicated in-house professional increases overhead, but you may not need full-time services at all times. More than that, you may not want to pay for benefits, employment taxes, extra office equipment, a larger office space and more. Outsourcing this important task can dramatically reduce overhead.
When you use accounts receivable services, you may be able to scale services to meet your growing needs. For example, with in-house staff, you may find yourself stuck between the need for a part-time and a full-time employee or between one and two full-time staff members as your business grows. This creates unnecessary stress and potential backlogs that can be avoided if you simply outsource this task for scalability.
You can see that there are numerous benefits associated with outsourcing your accounts receivable tasks to a third party. However, there are several service providers available that may each offer different benefits or different levels of services. With this in mind, it makes sense to explore the options and to find a provider that most closely meets your current and projected future needs.
Addy Reeds is a freelance writer from Eugene, Oregon. She discovered her passion for journalism while attending the University of Oregon. Follow her on Twitter and Facebook: @addyreeds1; https://www.facebook.com/addy.reeds