When Does Outsourcing Accounts Receivables Make Sense?
More Business Articles
Customer Relationship Management - A Brief Look At What It Is
Small business/large business management and success is largely dependent upon customer acquisition, customer relationship enhancements, and customer retention, otherwise known as Customer Relationship Management, or CRM. CRM is a combination of enterprise strategies, business processes and information technologies that are used to learn about customers' needs and behaviors in order to develop stronger relationships with them.
Forex Trading Indicators And The Ever Changing Market Conditions.
Once you enter the Forex trading world you will immediately notice the need of using technical analysis in order to find trends when looking at the forex charts and also the importance of being aware of when they first develop so you can ride the trend until it ends. The foreign exchange market is a very strong trending market, lots of ups and downs in short periods of time, and it's, therefore, a place where technical analysis can be very effective.
Binders in Our Lives
Have you ever lost track of your appointments? Or the telephone number of an important business contact? Then the binder is for you. Unknown to a lot of people, a binder can serve many purposes, most of which are for us to organize our daily lives. Students carry them around, writing notes and scribbling lessons during their classes.
Trapped in a Box: The History of Carton Revealed
We may not be aware of it but the simplest of materials we use for covering our food has been around for over centuries. Take a peek inside your pantry and try to see if you can find a milk carton, a carton full of eggs or even a carton of your favorite breakfast cereal. Indeed, this centuries old packaging material is the carton.
How To Know The Facts from the Myths In Bankruptcy
If you are contemplating the possibility or prospect of filing for bankruptcy, you likely have in mind a number of myths about the process and procedure of bankruptcy. (You may also have some basic facts about bankruptcy, but desire more before you make a final decision as to whether or not you want to proceed with such an action.
Consumers Can't Find Most US Businesses Online
According to a recent study of Americans searching online for products and services, 77% searched by keyword, not by name brands or business names. This study ("Search Before the Purchase," February 16, 2005, by "DoubleClick" in conjunction with "ComScore Networks") is relevant to businesses whose websites do not appear at the top of the prominent results pages of traditional Internet search engines whenever consumers search for their product or service types.
Keep 100% Of Your Rent By Listing Your Vacation Rental By Owner
Listing vacation rentals by owner is a great idea because you are likely to rent it out, but you needn't pay out money to third parties to do the work for you. Listing vacation rentals by owner can be effective as long as you are willing to do the small amount of creative work to be sure that your rental is booked for the tourist season.
Companies continually make choices about which internal departments to grow depending on their potential cost versus profitability. In this modern age of business, outsourcing is a very beneficial way to essentially add entire departments without ensuing associated costs of growing departments in-house. But which pieces of the business should be outsourced? Operations such as sales and technology development are generally best handled in-house, as these are full-time needs and are at the heart of any company's essence.
However, tasks that require lots of costly resources, specialized expertise, and are not necessarily full time needs such as advertising and collections are often best handled by outsourcing agencies. But how does accounts receivable fit into the mix? Some collection agencies now offer full service, accounts receivable outsourcing packages. These collection agencies not only begin collections on bad debts as soon as necessary, but also manage customer accounts to prevent bills from entering into collection status.
On the surface, AR may seem like a function that can be handled in house by non specialist staff-and this may be the case for smaller businesses. However, as businesses grow, managing accounts, preventing past due accounts, and handling those that enter into collection status may become too cumbersome to be handled without professional intervention from collection agencies and their outsourcing programs.
Collection agencies already have the processes in place to manage customer accounts and the tools at hand to track down debtors who have relocated without a forwarding address. They have the trained staff in place to make timely phone calls and follow the protocol of the latest consumer protection laws. In other words, collection agencies can handle things quickly, identifying accounts that show early signs of delinquency and addressing the problem quickly, thus reducing bad debt.
Hiring collection agencies to simply go after debts once they've reached past due status is much costlier than preventing the problem in the first place though a tightly controlled accounts receivable process. Statistically speaking, once an account is three months overdue, you're likely to only collect 73 cents on every dollar. After six months that figure dwindles to 50 cents on the dollar and down to 25 cents after one year. Quite often, the cost of bad debt collected by collection agencies after the fact is much higher than prevention through outsourcing.
The right time to outsource accounts receivable duties to collection agencies will be unique for every company. You'll want to calculate your current bad debt and compare it to the average in your industry. If you're bad debt is equal to or above that of the industry average, you're losing more money than necessary by not having an efficient accounts receivable process. Relying on collection agencies as an accounts receivable outsourcing option is a way to get bad debt under control quickly and without any major up front cost.
About the Author
The author is a freelance copywriter. For more information about what a collection agency can do for you, visit www.AABUSA.com.
Source: Business Articles on ArticlesTree.com
Recent Business Articles
Why You Need To Quit The Job You Hate Right Now
Why would any sane person spend time getting better at something they hate to do? The concept seems insane, doesn't it? This is something only a crazy person would invest time into. So why is it then that the majority of the workforce in the US does exactly that every time they go to their job? Is the majority of the workforce crazy? In my opinion, yes, they are crazy.
Why should one consider an Indian export import directory?
Indian export import directory! Importers or exporters gain a good insight on the trade market with a comprehensive directory which helps them. Dealers find India, the most targeted market place as it's a highly populated region and find a huge re-export business here.
Why Not Walk A Mile In These Shoes " And More!
With lovely summer upon us, we're surrounded by a variety of outdoor sounds: the sizzling of BBQs, the cries of children for ice cream, delighted squeals of kids making mud pies - and the ringing laughter of those engaged in solo or team play.
Why choose a freight forwarder UK?
The transportation of goods from one country to another is no longer a whim, but a necessity. Countries in one corner of the world bring products from the other part to ensure the satisfaction of the population's needs, because of various factors.
Why be stressed about diversity training - when you can Celebrate Humanity?
The answers to all problems, lie hidden deeply within mankind. As a very fortunate human being, who has traveled amongst many diverse groups of people in the world, it always surprises me when people have challenges with "diversity training.
Why 3d Architectural Rendering Services?
Why to use architectural rendering services? Presenting your project or product in visually appealing form gives you an edge over other artistic mediums. Clients rely on the final product, so why not to present product with a 3D rendering, animation or walkthroughs.
Where to find the perfect Cell phone accessories?
Nowadays, mobile phones mean much more to people than just another electronic device meant for communication. In fact, for most of the people, cell phones are ways to make a style statement. This can be easily exemplified by the fact that you can easily sight any of the Hollywood stars these days with their fancy communicating gadgets and PDAs.
What is Custom Plastic Fabrication?
Custom Plastic Fabrication is the process of machining, forming, bending, cutting, polishing and assembling plastic parts from a custom design.
Westward Air Compressor Product Review
For anyone who wants to purchase air compressors, there are a number of products out there. In case you want really good and reliable quality products for very affordable prices, you should look for Westward air compressor products.
Way to Increase Your Sales with Joint Ventures!
Want to know how to increase your marketing effectiveness 10- fold overnight? Let someone else do it for you. Joint ventures, where another business markets your service or introduces you their clients, can help send your marketing to another level.
Using PLC Articles Effectively
Private Label Content? What is it? PLC is nothing more than articles, e-books and manuals that are free for subscribers to use as they wish. There are generally a few rules you must adhere to, you cannot claim copyright to PLC, or submit it to article sites, unless you change the content significantly.
Use Surveys to Find Out How Your Healthcare Site Is Doing
The best businesses know what their customers want and work hard to supply it to them. Toyota just this past sales quarter became the number one car sales company in the world. In typical fashion, they issued a statement saying they didn’t care if they were number one so long as their customers were happy.
Training for Success with Your Internet Business, Article 4, Deductions for use ...
If you are working from home, you may or may not have an area of your home that you refer to as your office. It may be that you make your phone calls from the bedroom and complete your paperwork at the kitchen table and see customers or clients in the family room.
Training for Success with Your Internet Business, Article 3, Purchase of Goods f...
If your home based business does not purchase goods for resale, then you will not need to know about Inventories and calculating Cost of Sales. If , on the other hand, your home based business requires that you purchase goods on a regular basis for your own consumption or for promotional purposes, this does not constitute inventory.
Touch Screen Technology Reaches A Global Market in Restaurants
Touch screen panels are everywhere. How many times a day do you interact with them? There are countless times a day; at the bank, the grocery store and even at the gas pump.