{"id":19634,"date":"2019-06-15T19:21:13","date_gmt":"2019-06-15T13:51:13","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=19634"},"modified":"2019-06-17T10:42:38","modified_gmt":"2019-06-17T05:12:38","slug":"account-receivable-services","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/account-receivable-services\/","title":{"rendered":"What is Account Receivable Services and why to choose?"},"content":{"rendered":"<p class=\"has-drop-cap\">In today&rsquo;s era, businesses are facing a challenging economy. Therefore, it has become quite essential for the companies to reinforce their resources and generate maximum ROI (Return On Investments) possible. Hence, it&rsquo;s crucial to improve the company&rsquo;s <a href=\"https:\/\/enterslice.com\/accounts-receivables-services\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Account Receivable Services (opens in a new tab)\">Account Receivable Services<\/a>. <\/p>\n\n\n\n<p>However,\nin-house accounts services could be expensive but outsourcing these services\ncould prove cost-effective. Besides, it&rsquo;s pretty daunting for most of the\nbusinesses to dedicate their ample time and resources required to handle the cost\nof carrying debt over time.<\/p>\n\n\n\n<p>Hence, you are advised to delegate your accounts receivable services to the trusted professionals in the city. In this blog, we are going to discuss what actually account receivable mean, how it affects your business, and more.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Does Account Receivable Mean? <\/h2>\n\n\n\n<p>Account receivable is the amount that a customer owes to the company for purchasing goods or services. It is generally the unpaid amount or used on credit. <\/p>\n\n\n\n<br><div class=\"shadow1\">Accounts\nreceivable (AR) implies a line of credit that a company extends. Furthermore,\nit has terms that demand the payment of the unpaid amount within a specified\ntime period. The timeline for the payment can range from a few days to a\nfinancial or calendar year. <\/div>\n\n\n\n<p>Accounts receivables have a massive impact on the company&rsquo;s cash flow activities. If not done correctly, it can weaken the company&rsquo;s finance. On the other side, a strong accounts receivable could help companies to generate higher revenues.  Hence, outsourcing these services to the one who has expertise in this particular field could be a wise option.  <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/Account-Receivable-Services.jpg\" alt=\"Account Receivable services\" class=\"wp-image-19639\" width=\"261\" height=\"189\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/Account-Receivable-Services.jpg 626w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/Account-Receivable-Services-300x218.jpg 300w\" sizes=\"(max-width: 261px) 100vw, 261px\"\/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">End-to-End Accounts Receivable\nServices provided by Enterslice<\/h2>\n\n\n\n<ul><li>Sales orders processing<\/li><li>Payment follow-ups<\/li><li>Invoicing and billing<\/li><li>Bookkeeping<\/li><li>Customer reconciliations<\/li><li>Customer help desk<\/li><li>Verification of Invoice receipt\n<\/li><li>Credit Memo processing<\/li><li>Invoice reconciliation with\npayments<\/li><li>Credit Control Tools with\nContinuous Monitoring<\/li><li>Dispute \/ Chargeback management<\/li><li>Bad Debts\/ Delinquency\nManagement<\/li><li>GST Form collection\/CST C-forms<\/li><li>Recovery suites handling<\/li><li>Debtor Aging Report Preparation\nand Processing<\/li><li>Monthly Open Balance Statements\nto Customers<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Advantages of\nOutsourcing Accounts Receivable Services<\/h2>\n\n\n\n<p>Contracting <a href=\"https:\/\/enterslice.com\/accounts-receivables-services\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"accounts receivable services (opens in a new tab)\">accounts receivable services<\/a> is the most efficient way to save money, time, and resources. Hence, if you find that the percentage of your accounts receivables is low and that your business receives inaccurate and late payments, then you should definitely delegate your AR works to an experienced professional. <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" loading=\"lazy\" width=\"580\" height=\"352\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/image-60.png\" alt=\"Account Receivable Services\" class=\"wp-image-19635\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/image-60.png 580w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/image-60-300x182.png 300w\" sizes=\"(max-width: 580px) 100vw, 580px\"\/><figcaption>Benefits of Account Receivable Services<\/figcaption><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Upgrade your Accounts Receivable Process<\/h3>\n\n\n\n<p>Outsourcing\nyour accounts receivable, you can collect payments quickly and within the required\ntime. Furthermore, to ensure that there&rsquo;s no delay in the payment collection,\nthe service provider uses customer-friendly options and advanced electronic\nbilling.<\/p>\n\n\n\n<p>Moreover, you don&rsquo;t need to be present during the time of payment as all mobile payments and electronic transfers are handled properly. Besides, several payment options let your customers choose their preferred mode of payment and pay before the due date. In turn, this improves the <a href=\"https:\/\/enterslice.com\/cash-flow-management\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"cash flow of the company (opens in a new tab)\">cash flow of the company<\/a>. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Reduce Time and Cost<\/h3>\n\n\n\n<p>When\nyou operate such services in-house, it is both costly as well as time-consuming.\nYou would require investing in building an accounts receivable department,\nhiring staff, buying equipment, and infrastructure. <\/p>\n\n\n\n<p>However, when you outsource AR services, you are required to pay only for the service you have hired them. Hence, through outsourcing, you can save you ample time and cost. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Let you Concentrate on your Core Business Operations<\/h3>\n\n\n\n<p>By\ndelegating your accounts services to the professional, you can focus on core\nbusiness operations so that they can grow. The outsourcing accounts receivables\nservice provider tracks down people who make delay payments, thereby providing\nyou sufficient time to grow and build your company to its complete potentials. <\/p>\n\n\n\n<p>Hence, outsource your accounts services to the trusted service provider in the <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Market&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;A market is a structured environment, either physical or virtual, where buyers and sellers convene to trade goods and services. This trading hub operates based on the principles of supply and(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/market\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>market<\/a> and engage yourself in more important work. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Increased Efficiency<\/h3>\n\n\n\n<p>The outsourced agency has a team of skilled professionals who are well-experienced and has in-depth knowledge of outsourced work. And this is what an in-house team generally lacks.  <\/p>\n\n\n\n<p>Because of these reasons, the outsourced company is able to provide higher efficiency by executing your accounts receivables with accuracy and with the due time. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Effective Customers&rsquo; Screening<\/h3>\n\n\n\n<p>One\nwho holds expertise in accounts is better able to set clear credit policies and\nexamine the credit worthiness of multiple clients. They consist of the skills\nto figure out from the several clients that who have a strong credit history\nand therefore, are able to pay you back before the deadline. Such know-how can\nhelp you in saving money for a long time. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Faster Collections<\/h3>\n\n\n\n<p>More delays you make in collecting the overdue amount, the lesser amount your company will recover. The more your accounts get overdue by a month or year; you will lose more money which will directly impact your cash flow.  <\/p>\n\n\n\n<p>However, a service provider automates your accounts receivable process and let you close your books and save on cost. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Steps involved in the Process of Account Receivable Services <\/h2>\n\n\n\n<p>The steps involved in account receivable services may vary for different size of firms. On one side, bigger firms have a larger cash flow and hence, they don&rsquo;t hesitate to invest in highly skilled IT systems and <a href=\"https:\/\/enterslice.com\/learning\/customers-practices-accounts-receivable\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"credit management systems (opens in a new tab)\">credit management systems<\/a> to reinforce and handle the process well. <\/p>\n\n\n\n<p>However, on other hands, small firms have limited resources and therefore they can&rsquo;t invest so much in hiring. Instead, they outsource and save their time and cost both.  <\/p>\n\n\n\n<p>Let&rsquo;s find out the steps for the accounts receivable process. They are as follows: <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" loading=\"lazy\" width=\"596\" height=\"352\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/image-61.png\" alt=\"Account Receivable\" class=\"wp-image-19636\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/image-61.png 596w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/image-61-300x177.png 300w\" sizes=\"(max-width: 596px) 100vw, 596px\"\/><figcaption>Process of Accounts Receivable Services<\/figcaption><\/figure><\/div>\n\n\n\n<ul><li><strong>Step 1: Establish Credit Practices<\/strong><\/li><\/ul>\n\n\n\n<p>Firstly, the company needs to create a credit application process. Then, depending on the applicant&rsquo;s credit-worthiness, it shall conclude whether it will offer goods on credit or not. The company can also opt for offering credits to single customers or other businesses.  <\/p>\n\n\n\n<p>Furthermore, the company will build some terms and conditions for credit sales which must comply with Federal laws on credit. Moreover, the document must specify the requirements and obligations of the clients. For instance, the company must make its clients known about the interest rates for the credits. <\/p>\n\n\n\n<ul><li><strong>Step 2: Invoicing and Billing for Customers<\/strong><\/li><\/ul>\n\n\n\n<p>An\ninvoice is a document that a customer receives on the purchase of certain goods\nor services. The invoice consists of info such as the cost of products\/services\nrendered, details of the same, and the expected payment date. <\/p>\n\n\n\n<p>Every\ninvoice has a unique invoice number so that one can easily retrieve it.\nDepending on the customers&rsquo; choice, they are provided with either a physical or\nelectronic invoice. Generally, companies opt for electronic invoices since they\nare more convenient and cost-effective. <\/p>\n\n\n\n<p>Hence, the next step is to send the invoices or bills to the customers immediately. Or the customer will delay while making payments. <\/p>\n\n\n\n<ul><li><strong>Step 3: Monitor Account Receivable<\/strong><\/li><\/ul>\n\n\n\n<p>When you are done with invoicing, the next step includes tracking of accounts receivable by an Accounts Receivables Officer. The officer will monitor the payment deposited in the supplier&rsquo;s bank account, put it into the AR system, and allocate it to an invoice.  <\/p>\n\n\n\n<p>The officer is also responsible for reconciling the AR ledger which ensures that payments are properly posted. Furthermore, it also issues monthly statements to its clients, which provides customers&rsquo; information about the amounts owed.  <\/p>\n\n\n\n<ul><li><strong>Step 4: <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Accounting&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;Accounting is the language of business, serving as the backbone of financial management and decision-making. It involves the systematic recording, analysis, and reporting of financial(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/accounting\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>Accounting<\/a> for Account Receivable<\/strong><\/li><\/ul>\n\n\n\n<p>The Collection Officer finalizes the due date for payments of both bad and the unpaid debts. Once the officer has examined the unpaid debts, the accounts department will create journal entries to record the sales. Moreover, the accounts department is also liable for verifying discounts made on early discounts. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Effect of Automation on the Account Receivable Process<\/h2>\n\n\n\n<p>The\nworld has become technology savvy, and everything today has automated.\nAutomation plays a vital role in changing the way the business world operates\nnow when compared to earlier days. <\/p>\n\n\n\n<p>It has made things quite simple, cost-effective, and time saving. However, the initial cost would be high, but once you have purchased the right software and technology, you will recover the amount as soon as possible. <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/Account-Receivables.jpg\" alt=\"Accounts Receivables\" class=\"wp-image-19638\" width=\"342\" height=\"342\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/Account-Receivables.jpg 626w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/Account-Receivables-150x150.jpg 150w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/Account-Receivables-300x300.jpg 300w\" sizes=\"(max-width: 342px) 100vw, 342px\"\/><\/figure><\/div>\n\n\n\n<p>Here\nare some of the impacts automation has on the accounts receivable process:<\/p>\n\n\n\n<ul><li><a href=\"https:\/\/en.wikipedia.org\/wiki\/Automation\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Automation (opens in a new tab)\">Automation<\/a> has simplified the process of accounts receivables in many ways such as sending the reminders to customers for due payment on a frequent <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Basis&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;In finance, the &amp;quot;basis&amp;quot; is a term with several applications, including representing the difference between the spot price and the future contract price of an asset, which is vital in investment(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/basis\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>basis<\/a>;<\/li><li>It has reduced the need of workforce for simpler things;<\/li><li>Saves time and helps in enhanced productivity;<\/li><li>Procurement or accounts receivable has been organized;<\/li><li>Payments are more secure and quick now;<\/li><li>Reporting and analysing of transactions has been properly structured. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Wrapping Up<\/h2>\n\n\n\n<p>Account receivable services are extremely crucial to aid businesses to operate efficiently and generate more profits. Hence, one should never compromise on such things in any condition as accounts services are quite significant for the company&rsquo;s growth. <\/p>\n\n\n\n<p>Although you can choose to do the <a href=\"https:\/\/enterslice.com\/accounts-receivables-services\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"accounts receivable (opens in a new tab)\">accounts receivable<\/a> in-house but it would be too costly and not so efficient. Therefore, we recommend you to outsource the service to a trusted service provider such as Enterslice.  <\/p>\n\n\n\n<p>Services provided by the <a href=\"https:\/\/enterslice.com\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Enterslice (opens in a new tab)\">Enterslice<\/a> consists of an innovative approach to aid companies boost up their AR department&rsquo;s performance by strengthening overall work capital and reducing DSO (Days Sales Outstanding). Contact us now.  <\/p>\n","protected":false},"excerpt":{"rendered":"<p>In today&rsquo;s era, businesses are facing a challenging economy. Therefore, it has become quite essential for the companies to reinforce their resources and generate maximum ROI (Return On Investments) possible. Hence, it&rsquo;s crucial to improve the company&rsquo;s Account Receivable Services. However, in-house accounts services could be expensive but outsourcing these services could prove cost-effective. Besides, [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":19644,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1314],"tags":[1400],"acf":{"service_id":"297"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is Account Receivable Services and why to choose? : Enterslice<\/title>\n<meta name=\"description\" content=\"Account receivable services are extremely crucial to aid businesses to operate efficiently and generate more profits and It helps in generating revenues.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/account-receivable-services\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is Account Receivable Services and why to choose? : Enterslice\" \/>\n<meta property=\"og:description\" content=\"Account receivable services are extremely crucial to aid businesses to operate efficiently and generate more profits and It helps in generating revenues.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/account-receivable-services\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2019-06-15T13:51:13+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-06-17T05:12:38+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/Accounts-Receivable-Services.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"700\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Khushboo Priya","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/06\/Khushboo-Priya.jpg","authorDescription":"Khushboo Priya is an experienced Legal content writer with a prodigious proof-reading and research &amp; development skill.","postViews":484,"readingTime":5,"nextPost":{"id":19761,"slug":"change-in-esi-contribution-rates"},"prevPost":{"id":19540,"slug":"how-to-avoid-delay-in-getting-fssai-license"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/06\/Accounts-Receivable-Services.jpg","postTerms":"Finance &amp; Accounting","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/19634"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=19634"}],"version-history":[{"count":0,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/19634\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/19644"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=19634"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=19634"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=19634"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}