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accounts-receivable-service.php
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accounts-receivable-service.php
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<!DOCTYPE html>
<html lang="en">
<?php $h1keyword = "Accounts Receivable Service"; ?>
<?php $ImgSlider = "'img/img-cpa/img-slider/ambit-banner.jpg'"; ?>
<head>
<link rel="canonical" href="https://ambitkpo.com/accounts-receivable-service.php" />
</ /?php include "comm/comm-industry/comm-inner-pages-all.php" ; ?>
<title><?php echo $h1keyword;?> - Start Free Trial for 20 Hours</title>
<meta name="description"
content="Looking for <?php echo $h1keyword;?>? Hire Remote Bookkeeping company in india and Get Free Trial for 20 Hours">
<meta name="author" content="Ankur patel" />
<?php include "comm/comm-header/comm-header.php";?>
<?php include "comm/comm-slider/comm-slider-inner/comm-slider-inner.php";?>
<?php include "comm/comm-call-to-action/comm-cta-afterslider.php";?>
<!-- WELCOME -->
<section>
<div class="container">
<div class="row">
<div class="col-lg-5 m-t-10">
<div>
<ul>
<li>
<img class="center xap-box-shadow" src="img/img-service-inner/account-receivble.jpg"
alt="App" style="max-width: 100%;">
</li>
</ul>
</div>
</div>
<div class="col-lg-7">
<h2 class="m-t-10"> Accounts Receivable Management</h2>
<p>An enterprise focuses on Sales growth as it is the driving factor towards all future needs of the
business but Sales growth without proper credit control can lead to failures in the business.
Thus, for an organisation to have an effective control needs to establish proper accounts
receivable processes to ensure smooth flow of funds for running the business.</p>
<script type="text/javascript" src="https://widget.clutch.co/static/js/widget.js"></script>
<div class="clutch-widget" data-url="https://widget.clutch.co" data-widget-type="2" data-height="45"
data-nofollow="true" data-expandifr="true" data-scale="100" data-clutchcompany-id="2032719">
</div>
</div>
</div>
<h4>Step 1 (Establishment of Credit Practice)</h4>
<p>The first step in this direction is Establishing Credit Practices. Credit practice means that for any
business they need to know their potential customer very well before starting to deal with them. The
identification process may involve getting the reference checks of the potential customer, credit
reports, getting the customer financials from the public documents, past payment track record,
interactions with the client etc. All the above processes will eventually help in identifying the credit
worthiness of the customer and thus helping in determining whether credit terms to be offered or not and
if yes then the period of credit to be offered and other checks and balances. The credit terms may vary
from customer to customer.</p>
<h4>Step 2 (Customer Account & Master Creation)</h4>
<p>Once a business enterprise moves ahead with establishing relationship with the potential customer the
next step shall be setting up the customer account and creation of customer master with all statutory
details duly incorporated. This will ensure compliance and proper invoicing.
</p>
<h4>Step 3 (Invoicing)</h4>
<p>Once the Customer master is set up the enterprise based on the purchase order and other negotiated terms
can issue invoice in the name of the customer. The main points to be ensured while invoicing is as
under:</p>
<p>⦁ The name and address of the Customer must be accurate. <br>
⦁ The Invoice should contain a unique Invoice number. <br>
⦁ The Invoice should incorporate the customer’s tax registration number accurately to help them get
credit of taxes and many other clearances. <br>
⦁ The Invoice should have proper description of the products or services rendered with proper tax codes
(if any) <br>
⦁ The Taxes charged should be accurate and in line with the prevailing laws. <br>
⦁ The invoice should clearly mention the due date of payment. <br>
⦁ The Invoice should be accompanied by all the documents which would enable the customer to get
clearances of the goods and properly maintain their accounting records. <br>
⦁ The Invoice should either be sent in Physical copy or if they are digitally signed it should clearly
mention that the invoice is digitally signed and does not require signature. <br>
⦁ A maker checker mechanism in Invoice processing will help minimise errors and efforts involved in
correction of wrongly generated invoices. <br>
</p>
<h4>Step 4</h4>
<p>Many enterprises and businesses use different software for invoicing and accounting thus it becomes very
crucial that the invoicing software is properly integrated with the accounting software to ensure
minimal human intervention so that the effort is minimised. </p>
<h4>Step 5 (Due Date Reports to Collection Team)</h4>
<p>The Credit/collection team needs to get due date reports well in advance from the accounting department
to help them follow up with the clients and send reminders to make payment on due dates. The follow up
process must be robust and automated to ensure customer is aware of the due dates and, he is not
harassed by frequents calls.
</p>
<h4>Step 6 (Payment Collection)
</h4>
<p>The Credit/collection team should ensure timely deposit of payments from customer to the company bank
account and ensure to provide the payment details to the accounts department for reconciliation.
</p>
<h4>Step 7 (Reconciliation)</h4>
<p>Based on payment details received from the collection team the accounts department needs to ensure that
payments realised from customers are knocked off against each invoice and as per instruction of the
customer. In case of lump sum payments, the ideal way (in the absence of any customer instructions) is
to set off payment on First in First out basis. </p>
<h4>Step 8 (Reporting)</h4>
<p>In the entire process the management needs to be reported on the collections received, overdues,
deductions (if any made by customer), disputes raised by the customer, invoicing errors etc. All these
reporting will help the management to take appropriate measures which may range from discussions with
the client about the payment deductions, overdues, service issues etc and finally arrive at an
appropriate decision in the best interest of the business.</p>
<h4>Outcome</h4>
<p>An efficient Accounts receivable process helps management in monitoring as well as collection of payments
on time which will eventually help in the reduction of working capital cycle and in turn reducing the
cost of funds. In addition, the Management may also get insights on their own business issues like
invoicing errors, delayed collections due to service issues and many other aspects. </p>
<p>Thus, a constructive review mechanism will enable companies/firms to gain insights on their business
process flow. Many businesses also initiate internal audit checks at every stage of customer onboarding
which is also a highly effective way of managing the entire process.</p>
</div>
</section>
<!-- end: WELCOME -->
<?php include "comm/comm-expertise/comm-bookkeeping.php";?>
<?php include "comm/comm-service/comm-service.php";?>
<?php include "comm/comm-pricing-table/pricing-table.php";?>
<?php include "comm/comm-intro/comm-intro-v2.php";?>
<?php include "comm/comm-process/comm-process.php";?>
<?php include "comm/comm-faq/comm-faq.php";?>
<?php include "comm/comm-footer/comm-footer.php";?>