Accounts receivable management is about maintaining the outstanding payments from customers, warding off the overdue or non-payment scenarios, strengthening the company’s financial position, and allowing the business to run smoothly.
In simpler words, describing credit policy, issuing payment terms, sending follow-ups of expenditures, and on-time collection of payments are known as Receivable Management.
By definition, it might seem like an elementary task to perform but in verity, it is the most complex job to administer the receivables as per the nature of the business. It’s no hidden secret that, as the business grows, the process also becomes lengthy and complicated, which tends to be more error-prone. In such cases, the account holder and software ought to be adjusted to fit the business requirements.
Receivable management enables business finance to run smoothly, giving a comprehensive overview of cash flow while keeping a record of every transaction. Furthermore,
Have you ever wondered what would happen if the receivable was faulty?
Ultimately, the business will incur an immense financial loss because of bad debts.
The receivables management helps in monitoring the buyers and their transactional performance, giving owners the ability to maintain a close relationship with purchasers by.
Increased revenues result from improved receivable management. When businesses offer credit facilities to their customers, they generate maximum sales volume, since more
- Working capital blocked due to delay in collection of receivables
- High accumulation & write off of debtors as bad debts
- A high number of Receivable transactions under Reconciliation
- Funds to make up the Working capital deficit is a bit expensive
- Dependency on Sales & Accounts/Finance team for collections
- Less time to concentrate on Core Competencies
- Problems in Collection from Customers at different Geography
- Frequent movement of the team & training the new team affects the overall AR process
Each company faces the challenge of timely and correct collections from customers, and Pro-TEAM Solutions aids its clients with Receivables Management. With over a decade of experience in this field, we are known for our proficiency across India. Our experienced team is familiar with best account practices and uses advanced software to meet our clients’ needs and requirements.
- Managing the complete end to end receivables immediately after the invoice is being raised till it is collected
- Support over any chosen segment of the invoice life cycle
- (i) Generating & Dispatching the Invoices
- (ii) Regular follow-ups to speed up collections
- (iii) Sending Reminders & timely escalations for necessary actions
- Proactive steps to ensure completion of pre-collection activities & coordinate in resolving the customer queries.
- Systematic collection procedures after payment delays
- Periodic Customer Balance Confirmations & corresponding Reconciliations
- Receivable Analysis & MIS for Decision making
- Ensuring Completeness of invoice before submission to customer
- We personally handovers the bills & receive an acknowledgment for the same
- Acquiring confirmation from the customer to process the bills
- 100% customer visits to push for immediate collection
- Target to achieve the maximum number of collectible invoices within a due date
- Independent review of pending issues & necessary escalation to resolve the same
- Aligning of expectations with division heads