Outsourcing Accounts Receivable for IT Businesses: Top Benefits and Providers

As an IT business, managing your accounts receivable can be a time-consuming and complex task. It involves tracking invoices, following up on payments, and ensuring timely collection of funds. 

Outsourcing accounts receivable services can be a game-changer for your company. Working with a specialized accounts receivable service provider allows you to focus on core business operations while maintaining financial stability. 

In this article, we will discuss the key benefits of choosing to outsource accounts receivable services for IT firms and recommend top providers that offer reliable solutions. 

10 Benefits of Outsourcing Accounts Receivable Services

IT firms can enjoy several benefits from outsourced finance and accounting services. Let’s take a look at the top 10 advantages:

1. Improved cash flow management

Cash flow is vital to the health of your company. A U.S. Bank study found that 82% of businesses fail because of poor cash flow management.

By outsourcing accounts receivable services, your IT business can ensure a steady and timely flow of cash. This is because specialized providers have the expertise and resources to effectively manage invoices, track payments, and follow up on outstanding balances. 

With improved cash flow management, you can better plan your budget and make more informed decisions for your business.

2. Access to expertise and advanced technology

Outsourcing to a specialized provider means you have access to experienced professionals who are well versed in accounts receivable management. 

They also use advanced technology and accounting software, such as automated invoicing systems and payment trackers, which can streamline the process and improve efficiency.

3. Cost savings on staffing and training

Hiring and training in-house staff to manage accounts receivable can be costly and time-consuming. By outsourcing, you eliminate these overhead expenses while still benefiting from expert services. 

You also have the flexibility to scale your services up or down as needed without the burden of hiring and letting go of staff.

By offshoring to other countries, such as Brazil or India, you may also be able to save considerably on salary expenses.

4. Enhanced focus on core business activities

Managing accounts receivable can take up a significant amount of valuable time and effort. By outsourcing, you free up your resources to focus on core business functions, such as product development, marketing, or customer service. 

This allows you to improve the overall efficiency and productivity of your company.

5. Reduction in delinquent accounts and bad debt

Outsourcing accounts receivable services to a specialized provider can help you reduce delinquent accounts and bad debt. 

These providers have the expertise and resources to effectively track and follow up on payments, resulting in improved cash flow for your business. Additionally, they can also conduct credit checks on potential clients to minimize the risk of non-payment.

6. Scalability and flexibility in handling accounts receivable processes

As mentioned in the cost savings section, outsourcing your accounts receivable functions allows you to scale and adjust your operations according to your business needs. 

This means that during busy periods, the provider can allocate more resources to handle your accounts receivable, ensuring the timely collection of funds. Similarly, during slower periods, they can scale back their efforts and save on costs for your business.

7. Accurate and timely financial reporting

Outsourcing accounts receivable services also gives you access to accurate and timely financial reporting. The provider will handle all the necessary bookkeeping, invoice tracking, and payment processing. 

This ensures that your business has up-to-date financial records and gains actionable insights for better decision-making.

8. Streamlined billing and collections processes

By outsourcing, you can streamline your billing and collections processes. A specialized provider has the necessary accounting systems to ensure invoices are sent out promptly and payments are collected on time. 

This helps improve cash flow and minimizes the risk of late or missed payments. Additionally, these providers often have dedicated accounts receivable teams to handle collections and follow up on outstanding balances.

9. Better compliance with financial regulations

Outsourcing your accounts receivable services also means entrusting this function to professionals well versed in financial regulations. 

This can help ensure that your business is compliant with all relevant laws and regulations, reducing the risk of any legal issues. It also helps your company maintain a good reputation and build trust with clients.

10. Improved customer relationships through professional accounts receivable management

By outsourcing your accounts receivable services, you can improve your customer relationships by having a dedicated team of professionals handle collections. 

This allows for more efficient and effective communication with clients regarding payments, which can lead to better customer satisfaction and retention.

Top 3 Reliable Outsourcing Providers for IT Companies

Dedicating resources to finding and hiring in-house accounting professionals can be a costly endeavor. Outsourcing providers offer cost-effective accounts receivable solutions with specialized expertise. 

Here are some top recruiting and accounting outsourcing firms, in no particular order, that offer reliable accounts receivable services for IT companies:

1. Near

At Near, we understand the unique needs of IT businesses and can connect you with top accounting and finance professionals from Latin America (LatAm). 

Our pool of pre-vetted, English-speaking accountants has hands-on experience with some of the biggest accounting firms in the world, ensuring accurate and efficient handling of your accounts receivable. 

Just ask CyberFortress, who we helped fill 12 roles, including senior positions like:

• Director of Accounting and Financial Reporting
• Accounting Team Lead
• Manager of Global Tax

They’ve saved $500,000 in annual salaries by hiring LatAm talent and improved their other processes by committing more internal resources to the things they’re best at. 

2. Auxis

Auxis is a consulting and outsourcing firm with over 25 years of experience in the field. Based in Fort Lauderdale, Florida, it outsources to Colombia, Costa Rica, and Mexico and has worked with clients from the technology sector.

The company’s accounts receivable outsourcing services include customer credit administration, billing services, order processing, cash application, customer master data administration, collections management, and dispute management.

3. Cogneesol

Global business transformation, technology, and consulting service Cogneesol has locations in New York City, the UK, Canada, Australia, and India. It is HIPAA-compliant, ISO-certified, and GDPR-compliant, with extensive experience in the technology sector.

Cogneesol’s accounts receivable outsourcing services include preparing reports, updating invoices, and escalating/alerting short payments.

Final Thoughts

Outsourcing accounts receivable services for IT businesses can bring numerous benefits, such as increased earnings, reduced costs, improved scalability, and better focus on core operations. 

When considering outsourcing options, it is essential to choose a reliable partner that understands the specific needs of IT firms.

With our deep experience as a top recruitment firm, we can help you find the best experts for your accounts receivable needs, allowing you to reap all the benefits of accounts receivable outsourcing while focusing on your business’s growth and success.

Let’s get to know each other: Book a free consultation call to see how Near can take your IT business further than you ever imagined with remote finance talent from LatAm!

Frequently Asked Questions

Can accounts receivable be automated?

Yes, many outsourcing providers offer automation solutions for accounts receivable services. They often have automation technologies for electronic invoicing, automatic payment reminders, and online payment options. 

However, it may be prohibitively challenging to automate your accounts receivable process without the help of a specialized provider.

What is accounts receivable software?

Accounts receivable software is a specialized digital tool that helps businesses manage invoicing, billing, and collection processes. It often includes features such as automated payment reminders, electronic invoicing, and online payment options.

Most outsourced providers already utilize accounts receivable software, meaning you don’t have to invest in it internally when you partner with one.

Is it hard to do accounts receivable?

Managing accounts receivable can be a challenging and tedious process, especially for IT businesses that may not have dedicated resources or expertise in this area. 

Outsourcing can be an attractive option, as it allows you to focus on your core competencies while leaving the responsibility of managing accounts receivable to specialized providers.