Why It Pays to Manage Your Accounts Receivable  

Ever counted the staff hours you’ve spent in the past month filling out paperwork for outstanding accounts?  Ever compared the time you’ve spent collecting to your time spent selling? The difference may surprise you.

As a business, you already realize the importance of growth. In order to grow, businesses must spend a great amount of time and resources to consistently generate new customers and increase cash flow from month to month.  The obstacle that most companies face is finding the perfect balance, or “sweet spot” between covering necessary expenses and generating enough revenue to make a profit.  Unfortunately, a business must spend time and money to train employees extensively, promote products and services through advertising, and occasionally purchase updated equipment in order to make future profits.  How can businesses possibly grow when they have to stress over bringing in enough cash flow to cover basic operating expenses each month?

The Answer: Free Up Your Capital

The key is to free up as much capital as possible so that expenses are covered with money left over to allocate toward other goals each month. A great way to achieve this is to effectively collect the money owed to you by customers who have outstanding accounts.  While this sounds like the obvious solution, it’s difficult to focus on outstanding accounts when you’re trying to move your business forward at the same time.  Chances are, you and your staff are already working at full capacity and can’t afford to take on the extra headache.

This is where strong accounts receivable management can greatly benefit any company with goals to focus more on activities such as sales and client development and less on collections. To relieve our clients of the daily hassle of collecting payments, we offer accounts receivable services through our associated company, Account Billing Services, Inc.  With this service, our clients have the opportunity to grow their client base while we handle daily receivables, set up easy and convenient payments for customers, and send friendly reminders when payment is due each month. As a result, our clients are able to maintain positive relationships with happy customers who want to continue doing business with them.

“Early Out” Services Result in Early Cash

Perhaps the greatest benefit of these services is the opportunity to receive immediate payment for your services before they are placed for collection.  Our early-out and pre-collect services are designed to reach those customers who simply need courtesy reminders and a flexible payment plan in order to become current. Not only are we working to preserve your relationships with your customers, but we’re also working to free up your capital so that you can focus your staff hours to growing your business!

These services are easy to register for, so you can enjoy the benefits of excess time and capital as soon as possible.  Call us at 731-885-4349 or email us at info@collectionmgt.com so we can walk you through this simple and affordable process! We look forward to answering any questions you may have and can’t wait to spare you from the headaches.

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