Accounts receivable outsourcing is an excellent way to add high-level accounting skills and value to your company without the time, expense, and risk of recruiting, hiring, and training new employees. Companies choose outsourcing to support business growth and to augment their in-house teams, assigning critical tasks to outside professionals so that their staff can focus on higher-value activities. 

Accounts receivable outsourcing companies are highly-skilled, trusted financial professionals that can help your company grow, supporting reliable workflows even in times of rapid scale. If you have been considering hiring an accounts receivable outsourcing firm, this article will define what’s possible and outline the benefits of doing so.

What is Accounts Receivable Outsourcing? 

Accounts receivable are easily the most critical aspect of running a successful business. Incoming payments represent cash flow for the company. Therefore, it is essential to ensure the process is handled in the most expedient manner possible. Delays in sending out invoices or processing payments could put the company at risk and limit its capabilities. 

However, growth and other complexities can present challenges even when an organization has an in-house accounting team. New technologies, compliance, and increasing customer expectations can be overwhelming. Outsourcing provides access to skilled expertise that can get to work quickly, reducing risk and supporting continued progress. 

There are two types of accounts receivable outsourcing. 

Accounts Receivable Business Process Outsourcing

With business process outsourcing, you entrust specific tasks to the accounts receivable outsourcing firm. These include invoicing, collecting payments, and following up on debt collection. 

For example, a company has a backlog of accounts receivables it needs help catching up on. Hiring an outsourced team allows them to quickly catch up with those receivables and get back on track. 

The company pays the outsourcing firm a monthly fee, and the work is done according to a pre-set schedule.

The assignment could be long-term or project-based, depending on the company’s specific needs. In a project-based scenario, the outsourcing firm would be contracted to accomplish the company’s goals for a set period of time.

Accounts Receivable Staffing Services

Staffing services, also known as staff augmentation, helps to fill skills gaps that might exist in a company. Accounts receivable staffing services are a way to bypass the arduous recruiting process and accelerate time-to-value. 

For example, let’s say a company is looking to fill a position for accounts receivable. It could be that they’ve been having trouble identifying qualified staff, or perhaps a team member left suddenly and unexpectedly. 

The hiring manager works with the staffing service, leveraging an extensive database of talent to place a qualified person in their open position. Candidates are pre-screened and pre-vetted, reducing the time it would typically take to fill that seat. 

The company manages the employee directly and controls the workflow and productivity. However, the risk is reduced, as the staffing company pays the employee and handles their HR. If that hire does not work out for any reason, the staffing company will provide a new employee to take their place, ensuring no business interruption. 

Benefits To Outsourcing Your Accounts Receivable Management

Organizations tend to choose accounts receivables outsourcing companies when they need to solve problems immediately. However, that is just one reason why outsourcing accounts receivables is a good idea. 

Here are just a few of the top benefits accounts receivable outsourcing companies are known for.

  • Access to highly-qualified talent. Outsourced accounts receivable professionals bring a wealth of experience that will add value to your business immediately. They are on the cutting edge of the latest AR technology and can not only help you stay on track but advise you on strategies that will help the company grow and advance. Plus, AR outsourcing is not limited to day-to-day AR and accounting services. Whatever your company requires, the financial talent is at your fingertips, from tax expertise to fractional CFO. 

  • Access to diverse candidates to help companies meet quotas in the organization. Diversity is a significant concern for most businesses. Hiring during the current labor crisis is challenging enough, but hiring diverse candidates can be even more difficult. An accounts receivable outsourcing firm will work with you to help you meet your diversity quotas, ensuring you have the right talent and expertise along with a good fit for your company’s culture. 

  • Reduce overhead costs by employing remote workers. Hiring and managing employees is costly. The time and effort to attract, recruit, and retain workers is significant. Office real estate is at a premium, and if you’re just starting up or trying to run lean, these are all things you’ll have to consider. Outsourcing allows you to hire remote workers, meaning you won’t have any of the above headaches or expenses. Remote AR professionals are accountable, responsive, and hard-working, ensuring the job gets done at a fraction of the cost of a traditional office setup. 

  • Try out a candidate without making a long-term commitment. Bad hires will cost you dearly. It’s estimated that the cost of a bad hire is equal to 30% of that employee’s annual salary. Those costs tend to be even greater in management-level positions. If you’re in a hurry to fill a role and overlook the red flags, you might find yourself on the wrong end of the yardstick. Outsourcing allows you to work with a candidate without committing to a long-term engagement. If the outsourced employee works out, they can easily transition to full-time. If they don’t, there’s no risk to you or your company as they will be immediately replaced with a more suitable candidate. It’s the ultimate “try-before-you-buy!”

  • Access to a national hiring pool. Most companies are limited to candidates in their local hiring area or to the databases of the recruiters they choose to work with. Partnering with an accounts receivable outsourcing company provides you with unprecedented access to a national talent pool, removing barriers to access and helping you find the right skills and the right people for your needs. 

  • Improved efficiency. When you work with an accounts receivable outsourcing company, you can be confident that the work will be done on time and as expected. You are not just hiring one person; you are hiring a team of professionals dedicated to your success. 

Final Thoughts

Companies choose accounts receivable outsourcing for many reasons, but the value is clear. Increased productivity, cost savings, and dedicated expertise are just a small part of the bigger picture. Outsourcing firms like STAY IN THE GAME partner with you to ensure you have the accounts receivable talent you need to satisfy your business goals.