One of the most important aspects of a successful business is ensuring its customers pay when they are supposed to, not when they believe they should.
It is for this reason that SMEs need to outsource their credit control duties to professionals like Accounts Receivable Solutions here in Australia. Why? Because outsourcing your credit control means that you can focus on what you do best, instead of wasting time trying to chase yesterday’s money instead of attending to the advancement of your business operations.
Hi, I am Adrian Stead, Managing Director of Accounts Receivable Solutions, based in Western Australia and with clients and operations throughout Australia.
Sound credit control ensures that you give credit to only to those credit applicants who are willing and able to pay, and who do so on time.
Contacting customers to collect monies owed or telling them that you are withholding their credit due to non-payment of overdue invoices can be extremely uncomfortable.
You don’t want to upset or anger your customer and lose future business from them so handling it in a professional and customer orientated way is a must.
The best course of action is to hire an outside business that is experienced in such matters and empathetic to your, and your clients’, needs. A team of experts who are focused on credit control. A company that has experience in managing the credit control requirements of different organizations, a Company that is geared to success. Accounts Receivable Solutions.
It is important however that the distinction between Credit Control and Debt Collection is made. Good credit control minimizes considerably the need for a business to employ the services of a debt collector. Only when all other approaches have failed (and that is very rare) will there be a need to do that.
Accounts Receivable Solutions began operating in Australia in 2002 and has provided excellent credit control to scores of businesses in that time and continues to do so today. There are 5 very good reasons why this is and why you should seriously consider doing likewise:
It is Extremely Cost-Effective
You will know, the cost of employing full time staff that are efficient and reliable is considerable. The average salary of a young Accounts Receivable Officer is upwards of $55,000 p.a. Add on allied costs for holidays, sick leave etc and that rate escalates to somewhere near $72,000. If you have a large debtor book you may need more than one person and/or a Supervisor.
Outsourcing will negate those add-on costs and time, and will gain you experienced, knowledgeable and service-focused operators for less than 20% of that salary.
You Need the Right Staff
If you don’t employ full time Receivables staff, then someone else in your organization will be the one doing the job and, in all probability, they won’t like doing it. Most employees not trained to be effective receivables operators dislike having to chase customers for money and they don’t do it very well or find it extremely stressful. And, surely, they can be better utilized to develop you business elsewhere?
Professional credit control services allow you to do just that; you don’t have to make do and mend.
You Need the Right Technology
Effective credit control requires the right know-how, software that enables prompt reporting and the proper technology.
There is a lot to get right and, again, there are major costs involved. By outsourcing your credit control, you are getting all this and much more.
Accounts Receivable Solutions has the systems which can be tailor made to suit your needs so that you are always up to date with not only debtor numbers but what has been said, when and the outcomes. It also prevents any possibility of over-servicing or trying to use a sledgehammer when a nutcracker would be more suitable. Flexibility is the key so we stay on top of it all so you do not have to.
You’ll Have a Strong Customer Focus
The role of credit controller is usually seen as an accounting function. As a function, this is incorrect. Accountants and bookkeepers make probably the worst receivables staff because they are merely numbers people. To us at Accounts Receivable Solutions it is absolutely a customer service role.
We take the time to get to know your customers, to nurture their well-being, to promote your business and make darn good PR. This then makes it easier for you to actually look after your customers, to get to know their needs more without the discomfort of being nice to them on the one hand while holding out the other for money!
And a further benefit is that our operators actually present ourselves to your customers as members of your staff, albeit not on the payroll!, so that the image of you Company is enhanced by the quality of its communications. For smaller businesses, particularly, this is an impressive aspect of outsourcing to Accounts Receivable Solutions.
There are No Long-Term Contracts
A feature of our operations that has been extremely well received is the fact that there are no long-term contracts entered into. We simply leave the business when our services are no longer needed. This provides further comfort for businesses that use our services and assists in the financial planning for operational development.
For further details on how we can assist your business, please send me an email with your needs listed and I shall be delighted to respond promptly. email@example.com.
Alternatively call me on 0427 881 818 or see our website at www.arswa.com.au.