Accounts Receivables

5 common problems faced by companies in their AR function

1. No foolproof system to ensure the receipt of invoices by the relevant person at Client’s office

2. Lack of real time debtors ageing

3. No systematic follow up with clients for payments

4. Huge dependency on sales team for realization of payments

5. Unending issues related to reconciliation with clients

Benefits experienced by our clients

1. Better working capital management due to accuracy in predicting the cash flow

2. Real time status of Debtors ageing with permission based access

3. Systematic fullow up with clients as per credit period which includes maintaining the records of conversation held with clients to avoid any communication gap.

4. Huge reduction in dependency on sales team for payment realization

Scope of work

• a. Generation and dispatch of invoices
  i. Preparation of invoices if it’s a manual activity
  ii. Generation of invoices from the relevant software
  ii. Dispatch of invoices to customers
  iv. E-mailing one copy of invoice for faster processing
  v. Updating the dispatch information which is available on real time basis

• b. Payment follow up
  i. Schedule payment fullow up based on the agreed credit period
  ii. Maintaining the log of previous communication with customer in an online software
  iii. Using the escalation matrix if there is an issue of payment with first level of contact
  iv. Updating cash flow projections accordingly

• c. Accounting of revenue and receipts
  i. Bill wise accounting of invoices raised on customers
  ii. Allocation of receipts against a particular invoices only
  iii. Correct accounting of credit notes issued to clients
  iv. Correct provisioning for doubtful debts as per company’s pulicy

• d. Reports and reconciliation
  i. Debtor’s ageing at a pre-agreed frequency
  ii. Initiating reconciliation of accounts statement with customers at a pre-agreed frequency
  iii. Bill wise outstanding detail of customers to sales team or management as and when required

• e. Audit support
  i. Preparation of year end Debtor ageing schedule
  ii. Answering auditor’s queries related to Accounts Receivable function