All About Accounts Receivable – What’s the Accounts Receivable Process?

An account receivable is very much important is small businesses. Collecting payment for all the products and services you’ve sold to your clients or customers forms the basis of a company’s cash flow. Overall it means if the customers are slow to pay, your finances are likely to be under major pressure. All businesses should have someone who manages debtors seriously but when you run a small business it becomes hard to hire a person especially for Account Receivable, so in that case, the best option is to hire Account Receivables outsourcing services.

What are accounts receivable?

Account receivable shows how much money a business is owed for the goods and services they’ve delivered but its payment is due. In simple terms, the money you’ve owed by customers. As per the expert Account Receivables outsourcing services provider, the total account receivable is the sum of all invoices that are outstanding. Once you send an invoice, it becomes a part of your business account receivable until you receive all the payment. 

What’s the accounts receivable process?

The account receivable process is not complex when you outsource it well. It is how your business goes about collecting payment for the service you provide to the customers. An effective accounts receivable process is an essential part of keeping a healthy cash flow. As per 3rd party Debt Collection agencies, firstly you need to immediately send your invoices after providing your product and services. The invoice amount becomes part of your account receivable. The best thing to do is keep your eye on your bank account for payment or you can set up your accounting software to do this automatically on behalf of you. Read more...