All about Accounts Receivables Management

Several companies engage in account receivables’ management. The process of accounts receivable begins with products or services being provided to the customer on a credit basis. In order to perform this, the company needs to ascertain who should get the credit and who shouldn’t, depending on the customer’s payment history. This step also involves when and how to evaluate a customer for credit. The company also ought to know whether it would be beneficial to offer discounts to speed-up the cash collections or not. Thus, after careful analysis and several questions being answered, the foundation for managing accounts receivables must be instated. The company that is in charge of detailing the transaction including the total amount and duration of credit creates an invoice, which is then recorded.

It is often the case that payment from one company to another is almost never received on time. This is when the collection department or the concerned mediator company takes over. The client or the customer is usually given the benefit of doubt and is allowed to explain the reason of delay. However, if there is a complaint regarding products or services, the matter is forwarded to the concerned departments. Once the issue is solved and the payment received, the process ends.

It is essential for companies to have a system in place to track account receivables. This includes a listing of all open invoices, balance forwards, and generation of monthly statement to customers. It is similar to that of an HR job, but probably a lot more work as these companies do this kind of work for several organisations together.

How does an account receivables firm function? While it must be alert and keep a track of all the payments and transactions, it must also get a head start on overdue accounts. You usually start by making phone calls followed by letters to upper-level managers for the customer. Try and negotiate payments such as instalments and asset donations. You must learn to be polite with the customers yet be firm enough to get your point across. If your collection efforts fail, you may want to use the services of a collection agency.

Several companies in India such as Firstsource, Outsource2india, Accenture and Aegis BPO specialise in account receivables. Aegis BPO specialises in the following two major areas:
• First-party collectionsr
The activities covered under this segment start from managing courtesy calls through to the process of pre-charge negotiations. Aegis hires the best talent available and makes sure to offer to its clients the best that there is.
• Third-party recoveriesr
Here, Aegis BPO manages the skip tracing and post-charge off recoveries activity on the primary, secondary and tertiary portfolios of its clients.