Top Benefits of Outsourcing Accounts Receivable Services for Construction Companies

Managing accounts receivable (AR) efficiently is crucial for the financial health of construction companies. Due to the industry’s unique challenges, such as long project timelines and complex billing processes, the choice to outsource accounts receivable services for construction can offer significant advantages. 

Outsourcing these services can offer numerous benefits, providing construction companies with access to specialized expertise and cutting-edge technology.

This article explores the benefits of outsourcing AR, highlights the best countries for outsourcing talent, and lists top companies specializing in AR services for the construction industry.

Benefits of Outsourcing Accounts Receivable Services for Construction Companies

Here are some strategic advantages that make outsourced AR services a compelling choice for the construction sector.

Streamlines financial processes

Outsourcing AR services can streamline financial processes within your construction business. By delegating this function to specialized third-party service providers, you can focus on your core activities, such as project management and client acquisition. 

This approach not only enhances operational efficiency but also ensures that financial transactions are handled with precision and professionalism.

Provides access to experienced professionals

Access to experienced professionals is another significant benefit of outsourcing. Outsourced accounting firms employ experts with extensive knowledge of the construction industry, allowing them to manage AR more effectively. 

The expertise that comes with outsourced finance services can lead to better cash flow management, timely collection of payments, and improved financial reporting.

Ensures timely payments from customers

Ensuring timely payments from customers is crucial for maintaining a steady cash flow. Outsourced providers use advanced tracking and follow-up systems to ensure that invoices are paid on time. 

This reduces the risk of payment delays and helps you avoid cash flow disruptions, which can impact project timelines and overall business operations.

Flexibility in choosing accounting software

Flexibility in choosing accounting software is an additional advantage. Outsourced AR services can integrate with a variety of accounting platforms, allowing you to select the software that best meets your needs. 

This flexibility ensures that financial data is accurately recorded and easily accessible for reporting and analysis.

Optimizes cash flow

By managing AR effectively, outsourced partners help maintain a healthy cash flow. They ensure that payments are collected on time, reducing the gap between invoicing and cash inflow.

By employing specialized strategies and tools, they can manage cash inflows and outflows, leading to better financial planning and a greater ability to invest in new projects or resources.

Manages delinquencies

Managing delinquencies is another area where outsourcing can be beneficial. Specialized providers have the expertise to handle overdue accounts and implement effective collection strategies. 

They employ professional tactics to handle overdue payments and recover outstanding amounts efficiently. This reduces the risk of bad debt and improves overall financial stability.

Generates comprehensive reports

Generating comprehensive reports is essential for informed decision-making. Outsourced AR services provide detailed financial reports that give construction companies valuable insights into their financial health. 

These reports can help identify trends, assess performance, and develop strategies for improvement.

7 Countries for Outsourcing Accounts Receivable Services for Construction Companies

Outsourcing AR services to certain countries can offer cost savings and access to skilled professionals. Here are seven top countries for outsourcing AR services in the construction industry.

1. Mexico

For US-based companies looking for nearshoring options, Mexico provides a convenient location with skilled professionals and cultural compatibility.

Its large pool of financial professionals, time zone alignment, and beneficial trade agreements with the US make Mexico a top choice for offshore accounting outsourcing.

2. Brazil

Brazil offers favorable time zones for US companies and a skilled workforce. The country’s outsourcing industry is expanding, providing high-quality AR services at competitive prices.

3. India

India is a popular destination for outsourcing due to its large pool of skilled professionals and cost-effective services. Indian outsourcing firms are known for their expertise in financial processes and use of advanced technology.

4. Philippines

The Philippines offers a highly educated workforce with strong English language skills. The country has a robust outsourcing industry, providing high-quality AR services at competitive rates.

5. Poland

Poland has a growing outsourcing industry with a focus on finance and accounting services. Its highly skilled workforce and strong work ethic make it a reliable option for outsourcing AR processes.

6. South Africa

South Africa provides a skilled talent pool with excellent English language proficiency. The nation’s outsourcing industry is well developed, offering reliable AR services at competitive rates.

7. Vietnam 

Vietnam is emerging as a viable outsourcing destination for AR with a growing pool of knowledgeable professionals. The country offers cost-effective services and a strong commitment to quality.

Top 9 Companies for Outsourcing Accounts Receivable Services for the Construction Industry

In no specific order, here are the top partners for outsourcing your construction company’s AR functions.

1. Near

We put ourselves at the top of this list because of our dedication to helping clients in the construction industry hire the best accounting talent from Latin America (LatAm). 

At Near, we specialize in helping companies leverage the advantages of nearshoring, including access to financial expertise, cost efficiency, and so much more. 

By partnering with Near, construction companies can hire accounts receivable specialists for significantly less than local professionals while still benefiting from time zone alignment and cultural compatibility. We also make the hiring process simple with 360 support and recruitment and staffing solutions specially tailored to meet the needs of each client.

2. Accenture

Accenture offers core finance services outsourcing that assists with AR management and helps increase operational efficiency and compliance with regulatory requirements.

Its expertise as a BPO company can help empower construction businesses to leverage accounting technology for efficiency and accuracy.

3. Infosys BPM

A global leader in outsourcing, Infosys offers specialized wealth and asset management services, including payables and receivables, to help businesses enhance operational efficiency and reduce costs. 

The Infosys team has a deep understanding of financial control, global presence, and extensive experience, making the company a reliable partner for businesses in the construction sector. 

4. Genpact

Genpact delivers customized AR solutions, emphasizing process improvement and risk management to enhance financial performance.

The firm specializes in transforming financial processes through technology-driven approaches. Its specialty in providing outsourced services across different industries ensures a secure experience, including for companies in construction.

5. WNS Global Services

WNS Global Services offers tailored finance and accounting services, helping construction companies improve cash flow and reduce delinquencies.

It leverages advanced technology and industry expertise to deliver exceptional results.

6. Capgemini

Capgemini is another top outsourcing provider, offering a range of financial services designed to meet the specific needs of construction companies.

It provides robust and scalable AR outsourcing solutions, focusing on process efficiency and leveraging technology to deliver comprehensive financial services.

7. Gaviti

Gaviti combines financial expertise and technology to help clients transform AR management. Its focus on AR automation and management empowers businesses to manage cash flows, gain financial insights, and make informed business decisions.

8. Whiz Consulting

Whiz offers outsourced AR services that help businesses avoid neglecting receivables and financial losses. Combining deep expertise with accounting software, Whiz streamlines accounting processes for clients, improving financial health and operations.

9. EY 

EY provides a wide range of financial outsourcing services, leveraging technology and financial expertise to help businesses manage receivables and payables. 

Construction companies can rely on EY for a comprehensive approach to outsourced AR management and to gain insight into how to maintain a healthy cash flow while avoiding debts and delinquencies.

Final Thoughts

Outsourcing AR services can be a strategic move for construction companies seeking to enhance cash flow, reduce operational costs, and access specialized expertise.

Investing in outsourced AR services can significantly improve your company’s financial health and operational efficiency.

By partnering with the right AR outsourcing company, you can ensure efficient financial management, allowing you to focus on core activities and achieve sustainable growth. 

Near understands how crucial it is for companies in the construction sector to have effective AR management and is committed to helping them hire the best accounting professional for their specific needs.

Ready to add a qualified remote AR specialist to your team in 21 days? Book a free consultation today and learn how you can experience the benefits of efficient outsourced AR management.

Frequently Asked Questions

What should construction companies look for in an AR outsourcing provider?

Construction companies should look for providers with industry-specific expertise, robust security measures, flexible service options, and a proven track record in managing AR efficiently.

Can outsourcing AR services help with compliance and reporting?

Yes, outsourcing AR tasks can help ensure compliance with financial regulations like the Internal Revenue Code (IRC) and the Davis-Bacon Act. They can also provide comprehensive reporting for better financial planning and decision-making.

What are the cost benefits of outsourcing AR services?

Outsourcing AR services is often more cost effective than maintaining an in-house team, as it reduces overhead costs related to salaries, benefits, training, and technology investments.

Hiring from countries where accounting talent offers more competitive rates can be particularly cost efficient. Bookkeeping professionals in LatAm, for example, have average annual salaries of $42,000, over a third less than those of similarly skilled bookkeepers in the US.