Accounts
Receivable Services
Accounts receivable is the
amount of money owed to an individual, company, organization for the
goods / services provided to them. It is a current asset of a company
and represents the amount that customers owe to a business. Accounts
receivable are payable by the customers within a year from the date of
sale of goods / services.
Accounts receivable service is a vast area and includes :
- Accounts receivable recognition
- Accounts receivable valuation
- Accounts receivable disposal
These processes can be cumbersome and time consuming therefore,
large organizations either use accounting softwares or outsource the
process to professional accounting firms. This helps to manage it in a
better way.
Organizations realize that not all debts will be collected and
recovered, so they make an allowance for bad debts, that are in turn
subtracted from the total accounts receivable. Accounting firms collect
debts on behalf of their clients through settlement offers, payment plan
negotiation and sometimes legal action.
Advantages Accounts Receivable Outsourcing
Outsourcing the accounts receivable provides the following advantages:
- Ensuring internal control
- Effective expense administration
- Timely reconciliation of accounts receivable
- Saving time and man hours
- Preventing fraudulent invoices
