06.08.2021 | Posted by Erik
Spend Time Growing Your Business by Outsourcing Accounts Receivable
This might surprise you, but the perfect time for outsourcing accounts receivable isn’t when your aging is filled with invoices over 90 days past due. If your invoices are looking great, now is an ideal time to consider outsourcing accounts receivable. Here’s why.
The conundrum of A/R timing
Generally, our clients come to us once the house is already on fire. However, when businesses establish a plan ahead of time, they can often avoid the fire altogether – or at least have a solid fire drill in place for the occasion.
If your aging looks great, this is an ideal time to think strategically about whether to outsource accounts receivables and put in place a plan to keep your customers paying on time forever – not just temporarily.
The reality is that all businesses have high times and low times, but the best companies know that when they’re riding a wave of growth or financial stability, this is the best time to prepare for when times get tough again. There are many benefits to taking this approach.
What happens when you focus on accounts receivables during an upturn
Imagine your company begins experiencing radical growth only to be stopped by a failing A/R strategy. No one wants that. If you have growth goals, it’s critical to make sure A/R is under control because you can’t scale your business effectively if you don’t have a good A/R plan in place.
It pays to have a system established before you scale, so you aren’t stopped in your tracks on the way up. Since A/R takes a lot of time away from your business, it’s easy to see why so many companies put it off until it’s a problem.
That’s why outsourcing accounts receivables is the perfect way to prepare for the future. It allows you to focus on growth while getting procedures in place.
Your team can concentrate on revenue-making activities, and your outsourced A/R partner can get everything up and running in the background, so you’re prepared for any possible scenario.
Plus, working with an outsourced A/R team now allows you and your internal staff to get the hang of software, processes, follow-up, and technology today instead of when customers are already behind on invoices.
Too often, we come into companies and have to spend valuable time understanding existing processes and setting up viable solutions for them when what’s needed is to get right on the phone and start calling customers to get past-dues paid down. When we come in during an upswing, though, we can work out any kinks and establish procedures before the situation is dire.
Clearly, there are many advantages to proactively outsourcing accounts receivables. And when you choose a company like Axim, there are even more benefits to be had.
How Axim helps companies reach their goals
At Axim, our customers are more like partners, so we love being able to help them reach all of their goals – not just the ones related to payment collection.
That’s why we offer all our customers cash flow reporting as part of our outsource A/R services. This predicts how much money will actually come in each month. These reports help our clients establish more accurate financial forecasting and set realistic goals for growth.
We also help our clients identify their worst offenders. In doing so, they’re able to identify which of their customers are about to churn so they can take action to try to keep them invested and salvage the relationship and income. This approach directly contributes to the bottom line.
The advantages to choosing to outsource accounts receivables during an upswing are apparent. It prepares you for any future scenario while allowing you and your employees time to focus on revenue and growth.
So, don’t wait until you have a problem, be proactive, and consider outsourcing accounts receivable now. Get collections off your plate forever instead of temporarily.