Top Benefits of Outsourcing Accounts Receivable Services for the Real Estate Industry

As a real estate company, managing accounts receivable can be time-consuming and tedious. It involves tracking payments, following up on outstanding invoices, and ensuring timely collections. 

Outsourcing this aspect of your business can bring numerous benefits that can help streamline your financial operations and improve overall financial management. 

In this article, we will discuss the top benefits of outsourcing accounts receivable services for real estate. We will also provide insights on potential companies you can work with if you choose to outsource accountants to handle your accounts receivable functions. 

By the end of this article, you will clearly understand why businesses are choosing to outsource accounts receivable services for real estate and where to find reliable outsourcing partners.

What Accounts Receivable Services for Real Estate Can You Outsource?

Before we explore the benefits of accounts receivable outsourcing and potential companies to work with, let’s first cover what accounts receivable services can be outsourced for the real estate industry. Some of the common services that you can outsource include:

Dunning

Dunning is the process of reminding customers about their overdue payments and requesting them to settle their outstanding balances. 

This service can be outsourced to a third-party company that specializes in collections and has experience in dealing with real estate clients.

Resolution of customer queries

Outsourcing the resolution of customer queries related to accounts receivable can save your company valuable time and resources. A dedicated team can handle inquiries, provide timely responses, and ensure customer satisfaction.

Credit memo processing

Credit memos reduce the amount owed by a customer due to adjustments or refunds. Outsourcing this task can ensure accuracy and efficient processing, freeing up your staff’s time for other important tasks.

Collection and cash application

Collecting payments and recording them accurately is crucial for any real estate company. Outsourcing this task to a specialized team can ensure timely collections and proper application of cash, reducing the risk of errors.

Accounts receivable management services

Some outsourcing companies offer comprehensive accounts receivable management services, which include all the accounts receivable tasks mentioned above and more. 

This can be a cost-effective solution for real estate businesses looking to outsource their entire accounts receivable process.

Benefits of Outsourcing Accounts Receivable Services for Real Estate

Hiring outsourced accountants to handle your accounts receivable can bring numerous advantages. Here are the top benefits of outsourcing this service for the real estate sector:

Improved management of cash flow

Outsourcing accounts receivable services means you have a team of financial experts dedicated to managing your finances. They will ensure timely invoicing, follow up on payments, and handle collections efficiently. 

This can significantly improve your cash flow, as overdue invoices are promptly addressed and payments are received on time.

Reduction of costs

Managing accounts receivable in-house can be costly, as it requires hiring and training staff, purchasing accounting software, and other related expenses. 

By outsourcing, you eliminate these operational costs and only pay for the services rendered by the outsourcing company. This can result in significant cost savings for your real estate business.

You can also save considerably on salary costs by outsourcing to regions outside the US where accountants offer more competitive rates, such as Latin America (LatAm).

Access to specialized knowledge and advanced technology

Outsourcing providers that specialize in accounts receivable services for real estate have the necessary expertise and technology to handle these tasks efficiently. They are well versed in industry-specific regulations and can provide solutions tailored to your business needs. 

Additionally, outsourcing companies use advanced financial software and tools to streamline the process, resulting in greater accuracy and faster collection of payments.

Ability to focus on core business activities

According to a QuickBooks survey, 65% of businesses said they spent 14 hours per week handling administrative tasks related to payment collection.

By outsourcing accounts receivable services, you can free up your time and resources to focus on core competencies such as property management, sales, and marketing. 

This allows you to dedicate more attention to these crucial tasks without being bogged down by the administrative work of accounts receivable.

Flexibility and scalability

Outsourcing allows you to scale your accounts receivable services based on the current needs of your business. You can easily increase or decrease the level of service as per your requirements without having to hire or lay off staff. 

This flexibility can be especially beneficial for real estate firms that experience fluctuations in their property portfolio and cash flow.

Managing risk and ensuring compliance

As a real estate company, you are responsible for managing and mitigating risks associated with accounts receivable. 

By outsourcing this task to a specialized company, you can benefit from their expertise in risk management and ensure compliance with industry regulations. This can help protect your business from potential legal or financial repercussions.

Top 5 Reliable Outsourcing Companies for Real Estate Accounts Receivable

Let’s take a look at some top outsourcing and recruitment companies (in no particular order) with experience helping real estate businesses outsource accounts receivable:

1. Near

That’s us at the top! Near is a leading recruitment firm that specializes in helping companies find the best remote talent from LatAm. 

With our extensive network and expertise, we have successfully helped numerous real estate businesses build their teams with top-performing finance professionals from the region.

Our tailored approach ensures that we understand your specific needs and provide you with highly skilled individuals who can handle your accounts receivable processes efficiently.

2. Flatworld Solutions

Finance and accounting service Flatworld Solutions is a global company with a presence in the US, the Philippines, India, and the UK. 

It is ISO-certified and provides various services, including tenant accounts receivable management, month-end accounting tasks, reporting, reconciliation services, and tax assistance.

3. Invensis

Invensis is a Lewisville, Texas-based service provider recognized by DesignRush and SelectedFirms. It is trusted by over 1,000 organizations, including Amazon, GE, Bank of America, Intel, IBM, and the United Nations, and works with the real estate industry.

The company’s accounts receivable outsourcing services include sales orders, matching invoices with customer payments, credit memo processing, cash application, invoice receipt verification, monthly accounts receivable ledger reconciliation, and more.

4. Baker Tilly

International advisory tax and assurance firm Baker Tilly serves clients from locations throughout the US and around the world. It is a member of the world’s 10th-largest accounting and advisory network, which has over 90 years of experience.

Its real estate client accounting services include general ledger, accounts payable, and accounts receivable module administration, among other offerings.

5. Moss Adams

Moss Adams is a professional services firm that boasts over 100 years in business. From locations throughout the western US, it helps over 3,000 companies spread out over 100 countries and territories.

The firm’s outsourced real estate accounting services include accounts receivable management, such as invoicing and recording of collections, among other offerings.

Final Thoughts

Outsourcing accounts receivable services for real estate can bring numerous benefits to your business. From improved management and reduced costs to better expertise and flexibility, it is a smart move for any company looking to streamline its business operations and improve financial management. 

When considering outsourcing partners, it is critical to choose a reliable and experienced provider that understands the unique needs of the real estate industry. 

With Near as your outsourcing partner, you can expect personalized, reliable services tailored to your business needs. Our large pool of talented financial professionals can handle all aspects of accounts receivable management, allowing you to focus on other important tasks.

Don’t waste more time and resources trying to manage accounts receivable in-house. Book a free call with Near today to learn more about our outsourcing services for real estate and how you can save up to 70% on annual overhead costs by hiring top accounting talent from LatAm.

Frequently Asked Questions

How does the accounts receivable process work in real estate?

In the real estate industry, accounts receivable refers to the money owed to a real estate company by its clients or tenants. This can include rent payments, service fees, and other charges. 

Managing the accounts receivable process involves tracking and recording these payments, as well as following up on overdue invoices to ensure quick payment collections.

Is receivables outsourcing legit?

Yes, outsourcing real estate accounts receivable services is a legitimate and common practice in the real estate industry. It involves hiring a third-party company to handle your accounts receivable processes, such as invoicing, collections, and payment tracking.

How do you run an accounts receivable department?

Running an accounts receivable department involves various tasks, such as invoicing, tracking payments, and following up on overdue invoices. 

To effectively manage this department, you need to have a dedicated team that is well versed in financial management and accounting principles.

However, it can be time-consuming and costly to hire and maintain an in-house accounts receivable department in the real estate industry. Outsourcing accounts receivable is often a more efficient alternative, especially for small and medium-sized real estate businesses with limited internal resources.