What is the importance of days outstanding in Accounts Receivable Services ? Days outstanding is the average length of time that it takes for any organisation to collect the payment from its debtors. The higher the days outstanding the longer it takes for any organisation to receive the payment. If day outstanding is high, then it equates to poor cash flow and has an adverse effect on the business. Without the proper cash-in-hand it makes it very difficult to operate any business.
The next things any organisation can face are having a hard time paying the bills and making payroll. The average day outstanding will vary depending on organisation business nature, but one should always focus on cash needs in order run the show. Orgainsation credits policy, payment terms, and ability to follow-up on past due account will have a huge impact on the days outstanding. End of the day make sure business is in a good cash position by lowering the days outstanding.
Rayvat’s team ensure organisations receive payment for services offered or goods sold to clients. This typically involves sending bill remainders and statements to clients, posting financial transaction to an accounting system and making bank deposits. Account Receivable management services are the part of Outsourcing Bookkeeping Services
Outsourcing accounts receivable services includes –
- Invoice preparation
- Entering the receivable transactions
- Record and account for revenue
- Issuing of credit memos
- Accounts receivable factoring
- Preparing the accounts receivable reports
- Carrying out process adjustments approved by the customer
- Applying cash received to customer accounts and resolving short pays
Rayvat is an outsourcing company which specializes in providing Business accounting services. We will handle all your accounting requirements. Accounting requirements includes data entry (i.e. cash entry, credit card entry & banks entry), and bank reconciliations. We are also well-known accounts receivables specialist. Our other services also include accounts payables, payroll, month end closing and reporting. Because of outsourcing work, your company can focus all their energy on growing the business rather than worrying about the accounting aspects.
Benefits Organisation can derive by outsourcing accounts receivable management services-
- Better cash-flow Improve productivity and services
- Reduces bad debts that result in increasing firm’s profit
- Higher availability of cash to invest
- Help in securing financial protection
- Reduce the overhead cost include the wages and other indirect cost
- Confidentiality of data to ensure better security
- Minimize delinquencies and bad debt
Get in touch with us for a customized view of how your Accounts Receivables can be organized.