04.06.2021 | Posted by Erik
Thinking About Saying No to Outsourcing A/R? Read This First
We get it. Making the decision to outsource your accounts receivables management can be a tough choice to make. Over the years, we’ve heard many reasons why companies want to continue to juggle their A/R in-house – despite all the advantages to outsourcing A/R.
We want to take a few minutes to address some of these common objections and help alleviate any concerns you might have.
I Don’t Want to Outsource AR Because…
These are the top six reasons people put off hiring a receivables management company. Here’s our answer to each one.
1. “I already have someone who’s handling A/R.”
This one can be tough. If you have a team member or two currently handling A/R, it can be challenging to think about outsourcing their jobs. However, there are a few things we’d like you to think about.
First, those in-house team members might have skills that could be more beneficial elsewhere in the company. Accountants still have plenty of other tasks to keep them busy, as do other administrative staff. We aren’t looking to replace your internal team. Instead, we want to complement your existing structure and build a fruitful partnership.
When you outsource A/R, your team gets to focus on what they’re best at, and we get to focus on our specialty – getting accounts up to date and boosting your cash flow.
2. “I don’t want our customers to be driven away.”
With all of the aggressive collections agencies out in the world, this is a valid fear. What if an outsourced A/R company comes in and treats your customers poorly, is overly aggressive, and ruins the positive relationships that you’ve worked so hard to build?
Let’s clear this one up: A/R companies are not the same as collections agencies. These agencies earn money on commission, so they’re driven to collect more money, no matter the consequences, and they often use aggressive tactics to do so. Outsourced A/R partners like Axim focus solely on managing all of your accounts, and we do so for a flat monthly rate – no percentage-based fees, no debt collections. Our main goal is to keep you and your customers happy. We specialize in managing accounts and we don’t handle any debt collection – and that will never change.
We’ve found that a customer service approach goes a long way when managing A/R for our clients. Treating customers well helps us get more past-due invoices paid while supporting our clients’ business growth. We’ve said it before, but we’ll say it again, you catch more flies with honey than with vinegar.
3. “I want to be able to call on A/R help immediately.”
Some people just prefer a hands-on approach. You want to be able to pop into Amy’s office to discuss your receivables management at a moment’s notice, and you want to physically see someone on the phones making calls on past due invoices.
In cases like these, an internal team might be best. However, an outsource A/R partner that privileges communication like Axim may also meet your needs. For example, we work to keep our clients informed through reporting, weekly or monthly meetings, and email. You always know what’s going on, and you can email us to make requests on your account anytime.
So, while you might not actually see us on the phone, you’ll always be in the loop, and you’ll have the results to show that we’re doing our job well.
4. “I don’t feel comfortable outsourcing to people in other countries.”
This is a common misconception. Outsourcing isn’t the same as “offshoring.” And while there is a place for offshoring, we don’t believe it is in A/R. Language barriers are real, and it’s important for A/R specialists to communicate clearly. Customers need to feel comfortable when discussing their bills with you. Being able to speak to someone that uses the same turns of phrase puts people more at ease. We’ve found that southerners feel more comfortable talking with other southerners, just like Midwesterners want to communicate with someone who knows their lingo.
At Axim, all our A/R specialists are U.S.-based, in all different regions across the country. We assign you a dedicated account specialist who is located in your same time zone and region. This helps eliminate culture and language barriers. Just remember, outsourcing doesn’t mean offshoring, and at Axim, all our specialists are local.
5. “The C-Suite says we should outsource, but I’m not convinced.”
Big transitions are difficult. It can be really challenging to make the decision to outsource, and to do any restructuring that comes along with that decision. It’s especially difficult if the decision to outsource hangs on your shoulders, meaning that if it doesn’t work, the blame is likely to fall on you.
These types of big changes are always hard, but we believe you can only be the best by focusing on what you’re really good at. The future of all successful businesses lies in specialization. In 2021, it doesn’t make sense to invest core resources in A/R if you don’t specialize in receivables management.
We do. Companies have been outsourcing A/R to us for 10, 15, and 20 years because it’s our specialty, meaning we’re experts at it. Don’t let your fear of change keep you from focusing on your best assets.
6. “I don’t want to spend a ton of time transitioning.”
If the thought of adding and learning another system is keeping you from outsourcing A/R, we hear you. Our software interfaces with all major accounting programs and there is minimal onramp to start working with us. Once you provide the reports and account information we need, it’s only a one-day turnaround to get you up and running. Pretty fast, right?
You can keep using the same accounting system you’re familiar with, and then simply log into your cloud dashboard to view your account details on our A/R tracking platform whenever you’d like.
Ready to Say Yes to Outsourcing A/R?
Taking the first step to outsource A/R can be difficult. But after clearing up some of the common misconceptions we’ve covered today, it’s easier to see why outsourced receivables management can be so beneficial.
With our U.S.-based specialists, regular communication, minimal onramp, and a solid track record of results, outsourcing A/R with Axim just makes sense.
Contact us today to see how outsourced accounts receivables management can improve your business.