What are accounts receivable services?
Receivables are defined as the money owed by a costumer after they purchase goods or services from a company and still having credit due. These accounts receivable explained above are often shown as asset on the company's balance sheet.
, Accounts Receivable Services deal with collection of due amounts from the customer.
Brief understanding of accounts receivables
Lets us say, a customer owes certain amount due to a company. He receives an invoice, which needs to be paid within a certain time period which is known as payment terms. The money has to be repaid within 30, 45 or 60 days depending on the customer.
On every company's balance sheet, the amount receivable will be the amount the customer owes to the particular company. In the balance sheet, the receivables will be added in debit column and the revenue on the credit column. After the customer pays back the money, the cash will be debited and the receivables will be credited.
Accounts receivable software used
These are the software which is used for accounts receivable services namely:
- Quickbooks -- Accounting software for small business financial management.
- Check marks -- Payroll & Accounting software for businesses.
- M.Y.O.B -- Deals with entry level accounting to multi-user enterprise software.
Outsourcing Accounts receivable services in India
In the current business scenario maintaining a strong cash flow is the essence of growth and success. A fine tuned account receivable function is vital for your organization's cash flow. But this requires investment of time, talent and resources in order to be effective. Hence outsourcing these services has become a valuable alternative.
The following are the accounts services that can be outsourced to India
- Transfers & Adjustments
- Finance & Accounting Services
- Accounts Payable Services
- Clearing and settlements Services
- Liability Processing Services
- Accounts Reconciliation Services
- Entering Receivables Transactions Services
- Bills Reconciliation Services
Benefits of outsourcing Accounts Receivable Services to India
- Reduced expenses on staffing, training and infrastructure costs as you can take the services of another party. This will also reduce valuable time and you're your organization to concentrate on your core business objectives.
- Accelerated financial settlement cycle which will increase cash flow and also minimizes bad debt.
- Improved productivity.
- Enhanced customer satisfaction and loyalty.
The benefits listed above really prove that outsourcing "accounts receivable services" to India can give your organization a competitive edge.
Article Source: http://www.articlesbase.com/accounting-articles/what-are-accounts-receivable-services-440523.html
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