A year ago, I realized a big problem in my company. I had a sit down meeting with a lady named Connie and her partner Patrick from On Be-Half about accounts receivable management. Accounts receivable is the money that a customer owes you.
After 16 years of cleaning up disasters – I know this business pretty well. How to charge the customer, how to negotiate with the adjuster, and how to collect the money. Most companies just do the work and then give them an invoice, but ours is complicated and different.
Many times, we have to deal with insurance companies, each of which are a little different. Some are out of state, some have a middle-person called an independent adjuster, other times we have to get a mortgage company to sign off on the check before we can receive the funds.
You just can’t develop one system and expect to do it the same way each time. Now being able to look at this process, it made me think about how we are doing it – and if there was a benefit to hiring an accounts receivable collection company to manage some of that load.
Here are a few reasons why it may save your business time (and money in the long run) if you outsource this vital business need:
1. They can often collect more quickly, which means you get paid more quickly!
2. They maintain an established process. Every customer knows what to expect, every time.
3. They can increase your cash flow.
4. They’ll help to keep you informed about accounts receivable options and requirements.
As a small business owner, it’s important to remember that you don’t know everything about running your business. To grow and find success, sometimes you need to hire outside help.
That’s why, on Wright Stuff Radio, we feature experts from different fields, like accounts receivable, who can give you insight on every area of your business – and how to find the right fit when you need help.