The word receivable means something not received. Therefore, the Accounts receivable is the amount or the money that a business is supposed to receive after a certain interval of time when the business has sold its goods and services on credit.
For instance, the accounts receivable is the record of the fact that the company has provided some products or services to its XYZ customer and that customer owes money to the company. Typically, the credit period is short and ranges from one month to two or to a year.
Now, that you have known about Accounts Receivable, let’s see what Accounts Receivable services mean.
What are the Accounts Receivable Services?
Accounts Receivable Services are the services that companies employ to improve cash flow by enhancing their internal accounts receivable department Like Book Keeping. Such services ensure companies that they get back their payments in the least possible time. Moreover, accounts receivable services improve company’s collection rates and assure faster processing of invoices to contribute towards the cash flow.
Enterslice is one of the pioneers in Accounts Receivable Services that provides a wide range of services to its clients and that too at an affordable price.
Importance of Accounts Receivable Services
Usually, the businesses invest money in selling or delivering a product or service. After the sale, the inventories go low which, in turn, creates a need of an asset for balancing the financial statements.
The assets can be either in the form of cash-in-hand or receivable in case of credit sales. And, that’s the reason why accounts receivable appear in the assets side of the balance sheet.
Accounts receivable services create a major part of the company’s asset; hence it leads to the generation of cash in-flow in the company’s book. The intent behind providing a credit facility to the customers is to facilitate and ease the transaction process and establish a strong credit relation between the parties involved.
It may lead to better deals or enhance the chances of improving working capital management.
How to process Accounts Receivable Management?
Follow the described-below process for accounts receivable management:
Before agreeing to any terms and conditions, one must review the customer’s paying ability or mode properly.
One must keep a continuous track of any risk associated with non-payment or delay in receiving the payments.
Strengthen the client-customer relationship
To ensure that payment is received on time and to avoid the bad debts, the company needs to strengthen the client-customer relationship.
Address customer’s complaints
If you want to be in the good books of customers, then you must address every customer complaint properly, accurately and within a stipulated time. A happy customer will make the payments as soon as possible.
Reduce the balance in accounts
Once you have received the payments, lessen the balances in the company’s particular account.
Prevent any bad debts
You need to prevent any bad debts of the receivable outstanding during a specific interval.
Accounts Receivable Services offered by Enterslice