Outsourcing Made Easy: Accounts Receivable Solutions for Manufacturing Companies

Outsourcing has become a popular strategy for many manufacturing companies looking to streamline operations and improve efficiency. One key function that can greatly benefit from outsourcing is accounts receivable management. 

By partnering with specialized outsourcing providers to outsource accounts receivable services for manufacturing, you can free up time and resources to focus on core business activities while ensuring the timely collection of payments from customers. 

In this article, we will discuss the top accounts receivable services you can outsource for manufacturing and recommend some potential partners. By the end, you will better understand how outsourcing can benefit your manufacturing company and which companies to partner with.

The Importance of Outsourcing Accounts Receivable for Manufacturing

Outsourcing accounts receivable processes offers a range of benefits that can significantly improve your manufacturing company’s financial management and operations. Some of the key advantages of this strategy include:

Improved cash flow

By outsourcing accounts receivable services, you can ensure timely and efficient collection of payments from your customers. This leads to a healthy cash flow, which is essential for business growth and sustainability.

Expertise and efficiency

Outsourcing providers specializing in the management of accounts receivable have the expertise, resources, and technology to effectively manage accounts receivable functions. With their specialized knowledge, they can typically handle these accounts receivable tasks more efficiently than an in-house team, including:

• Invoicing
• Payment processing
• Collections
• Credit control

Cost savings

Outsourcing accounts receivable services eliminates the need to hire additional staff or invest in expensive accounting software, resulting in significant cost savings.

Moreover, outsourcing to locations like Latin America (LatAm) allows you to take advantage of lower salary expectations. For example, you can save over 60% on salary costs by hiring an accounts receivable coordinator from this region.

Focus on core activities

By outsourcing accounts receivable processes, you can free up your time and internal resources to focus on core activities, such as production and sales. This leads to increased productivity and better business outcomes.

Reduced risk of errors and disputes

With specialized outsourcing providers handling your accounts receivable management, the risk of invoice errors or disputes with customers is greatly reduced. This ensures smoother financial operations and maintains positive customer relationships.

How To Select the Right Partner for Outsourcing Accounts Receivable

Choosing the right outsourcing partner is crucial for a successful accounts receivable management process. Here are some key factors to consider when selecting a provider:

1. Identify your business needs 

Before looking for an outsourcing partner, it’s important to identify your business requirements and goals. This will help narrow down the list of potential partners and ensure that they can provide the specific services you require.

2. Research potential outsourcing providers

Look for reputable outsourcing vendors that have experience working with manufacturing businesses. Create an initial list of potential partners by looking on search engines, using online freelancing sites, or consulting professional networks.

You can also see our list of top accounts receivable outsourcing companies for the manufacturing industry below.

3. Consider accounts receivable experience and expertise 

It’s important to partner with a provider that has extensive experience and expertise in handling accounts receivable for manufacturing companies. This will ensure that they understand the unique challenges and financial processes involved in this industry.

4. Read reviews

Reviews from previous or current clients can provide valuable insights into the quality of services a provider offers. Look for reviews on third-party websites or ask for references to get a better understanding of their performance.

5. Have an intro meeting

Get on an introductory call with the most promising accounts receivable providers. This will allow you to learn more about their specific services, areas of expertise, and communication style and shortlist the providers who best align with your requirements.

Services Offered by Outsourced Accounts Receivable Providers

Outsourcing providers offer a wide variety of services to help manufacturing businesses manage their accounts receivable processes efficiently. These services include:

Invoice generation

One of the primary tasks of accounts receivable management is generating accurate and timely invoices for goods or services provided. Outsourcing providers use advanced software and tools to generate and customize invoices according to each client’s specific needs.

Receivables tracking

Outsourcing providers also provide real-time tracking of receivables, allowing you to stay updated on the status of your invoices and payments. This helps identify any payment delays or issues with payments, enabling you to take prompt action.

Dispute resolution

In case of any disputes or discrepancies with payments, outsourcing providers have dedicated teams to handle them efficiently. This saves time and resources for your manufacturing business, as you do not have to deal with dispute resolution.

Invoice management

Outsourcing providers also offer invoice management services, which include sending reminders and follow-ups for overdue accounts. This helps improve the overall collection process and reduces the risk of bad debt.

Payment collection and processing 

Once payments are received, outsourcing providers also handle the payment collection and processing on behalf of your manufacturing business. This includes recording payments, reconciling accounts, and depositing funds into designated bank accounts.

Credit risk assessment

Outsourcing providers also provide credit risk assessment services, helping you make informed decisions when extending credit to customers. This reduces the risk of non-payment and improves cash flow management.

Customer account reconciliation 

Accounts receivable outsourcing providers also offer customer account reconciliation services, ensuring that all accounts are accurate and up to date. This helps to identify any discrepancies in payments and resolve them promptly.

Aging report analysis 

Aging reports are essential for monitoring the timeliness of payments. Outsourced accounts receivable providers can analyze these reports to identify areas where collections processes can be improved, allowing you to take proactive measures and avoid late payments.

Cash application and allocation 

Outsourcing accounts receivable providers also handle the process of cash application, which involves matching customer payments to their respective invoices. This ensures accurate recording of payments and reduces errors.

Report generation

Timely and accurate financial reporting is crucial for manufacturing companies to make informed business decisions. Outsourced accounts receivable providers can generate detailed reports on accounts receivable, providing valuable insights into your company’s financial health.

6 Recommended Accounts Receivable Outsourcing Companies for Manufacturing Businesses

In no particular order, here are our top six outsourcing companies and recruiting firms with experience finding accounts receivable solutions for manufacturing businesses:

1. Near

Yep, that’s us! At Near, we specialize in helping companies hire top talent based in countries in LatAm. With expertise in the manufacturing industry, we understand the unique needs and challenges of businesses in this sector. 

We have a wide network of skilled professionals who can provide efficient accounts receivable services to help your manufacturing company thrive.

We’ve helped businesses find the finance talent they need to handle their accounts receivable needs, like Vanreusel Ventures, which saved $161,000 annually and reduced their hiring time by 73% with our help.

2. Auxis

Consulting and outsourcing firm Auxis has over 25 years of experience and has been recognized as a member of the IAOP Global Outsourcing 100 since 2015. It helps multiple industries with its services, including manufacturing and logistics.

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

3. Invensis Technologies

Invensis is an ISO-certified business services firm recognized by DesignRush and SelectedFirms for its years of experience helping over 1,000 businesses. It helps multiple industries with its services, including chemicals and manufacturing.

The company’s accounts receivable outsourcing services include sales orders, matching invoices with customer payments, monthly open balance statements to customers, credit memos processing, monthly accounts receivable ledger reconciliation, cash application, and more.

4. ARDEM Incorporated

Founded in 2004, ARDEM has offices in New Jersey and India, as well as a presence in Africa and LatAm. It’s worked with top brands to provide business process outsourcing across industries, including manufacturing.

ARDEM’s accounts receivable outsourcing services include invoice processing, vendor payments, expense management, email management, reconciliation, travel expense processing, coding invoices, vendor management, and more.

5. Axim

Axim is an accounts receivable outsourcing company with experience working with clients in the manufacturing industry. The US-based outsourcing firm has 40 years of experience and team members throughout the US.

Its outsourced accounts receivable services include invoicing, payment posting, and credit investigations. The firm utilizes its proprietary Axcelerate AR software, an automation tool for your accounts receivable process.

6. CapActix Business Solutions

Global business solutions firm CapActix has over eight years of experience providing services and staff to various industries, including manufacturing. The company has locations in the US, India, Australia, Dubai, and East Africa.

Its integrated accounting solutions include offshore accounts receivable accounting services for manufacturing businesses, such as recording revenue and receipts from customers and preparing accounts receivable aging summaries and detail reports.

Final Thoughts

Outsourcing accounts receivable services for manufacturing is a smart and efficient way to manage your company’s cash flow. 

By partnering with specialized outsourcing providers, you can ensure the timely collection of payments while freeing up time and resources to focus on core operations. 

When looking for an outsourced finance and accounting company that provides accounts receivable services, make sure it meets your business needs and has a proven track record with past clients. 

At Near, we specialize in recruiting top talent from LatAm for various industries, including manufacturing. Let us help you find the best outsourced accounts receivable provider for your company’s unique needs. 

Fill out this form to receive a list of pre-vetted accounting candidates, or book a free consultation call to discuss how we can assist your business with our tailored hiring solutions.