Maximize Profitability for Your Restaurant by Outsourcing Accounts Receivable

Managing accounts receivable can be a daunting task for any restaurant owner because of the complex nature of the industry. From managing multiple payment methods to handling large volumes of transactions, keeping track of accounts receivable can be time-consuming and overwhelming.

That’s why many food and beverage businesses outsource accounts receivable services. 

By delegating this important task to a team of skilled professionals, restaurant business owners can focus on other aspects of their business while ensuring efficient and accurate management of their finances. 

In this article, we will discuss the benefits you can gain when you outsource accounts receivable services for restaurants and the specific services that are available to help improve profitability and efficiency.

Benefits of Outsourcing Accounts Receivable in Restaurants

There are many reasons why restauranteurs, particularly those running small businesses, are choosing to outsource their accounts receivable function, but here are the top five:

Save time and resources

By outsourcing accounts receivable services, you can free up your time to focus on other important aspects of your business, such as food quality, customer service, and marketing. It also eliminates the need to hire and train in-house staff for this specific task.

Increase efficiency

Outsourcing accounts receivable services allows a dedicated team of accounting professionals to handle all aspects of accounts receivable management, such as invoicing, collections, and reconciliations. 

These professionals use cutting-edge technology and accounting software to streamline customer payments, reducing the time and effort required from restaurant staff.

Reduce costs

Hiring an outsourced team for accounts receivable services can be more cost effective than hiring and maintaining an in-house accounting team. It eliminates the need for additional overhead costs, such as salaries, benefits, and office equipment.

Access to expertise

Restaurant staff’s core focus should be providing high-quality service to customers—not dealing with accounts receivable tasks. Outsourcing accounts receivable services provides access to a team of professionals well versed in accounting practices and regulations specific to the restaurant industry. 

This expertise can help you identify areas for improvement and provide actionable insights into financial management.

Improve cash flow

In the hospitality industry, a cash flow issue can be devastating. By hiring a team of professionals to manage your accounts receivable, you can ensure timely customer payments, leading to a more consistent and stable cash flow. 

This gives you the necessary funds for purchasing ingredients, paying staff tip-outs, and other crucial expenses.

Types of Accounts Receivable Services for Restaurants

Outsourcing accounts receivable services for restaurants means hiring a team of experts to handle a wide range of financial tasks. These can include managing invoices, tracking payments, and following up with customer accounts.

Here are some specific services that you can outsource:

Invoice generation

Generating accurate and timely invoices is crucial for maintaining a healthy cash flow. However, manually creating and sending invoices can be time-consuming and prone to errors. 

For instance, outsourced accountants can ensure invoices are generated efficiently and accurately if your restaurant offers catering services. 

Collection management

Tracking and following up on customer payments can be a tedious and time-consuming process, especially for large catering orders or high-volume delivery services. 

Outsourcing collection management services can help you stay on top of overdue balances, ensuring you receive payments promptly.

Payment application

Applying customer payments to their respective accounts can also be monotonous, especially for restaurants with a high volume of transactions. 

Outsourcing this service ensures accuracy and timeliness in recording payments, reducing the risk of errors.

Credit management

Managing credit and collection processes takes care and precision, as it involves maintaining good customer relationships while ensuring timely payments. 

Outsourcing this service to credit management professionals can help minimize bad debt and improve cash flow, keeping your restaurant in good standing for catering large events or purchasing new equipment.

Customer account reconciliation

Customer account reconciliation is a crucial financial process that ensures all payments and transactions are accurately recorded. By outsourcing this service, you can avoid discrepancies in your financial records and maintain accurate accounts.

Aging report management

An aging report is a summary of all outstanding customer balances categorized by the length of time they have been overdue. 

Outsourcing the management of aging reports can help you stay on top of your cash flow and identify any potential issues with late payments, ensuring no meal goes unpaid for.

Dispute resolution

Handling disputes with customers over billing issues can be time-consuming and frustrating. It’s easy to make a mistake on large orders, and it’s important that both you and the customer are treated fairly to keep your business in good standing.

By outsourcing this task, you can ensure that disputes are resolved quickly and efficiently without taking up valuable time. This can lead to improved customer satisfaction and retention.

Financial reporting and analysis

Having accurate and up-to-date accounts receivable reports is crucial for making informed business decisions. If you want to open a new location, renovate your space, or make other critical financial decisions, you need sufficient funds.

Outsourcing financial reporting and analysis to professionals can ensure that your restaurant’s financial data is organized and analyzed properly, providing financial insights into the health of your business. This can help find areas for improvement and maximize profitability.

Customer communication and follow-ups

Managing accounts receivable also involves communicating with customers regarding their payments. While you could do this yourself, dealing with phone, online, and in-person orders is already enough on your plate.

Outsourcing this task can ensure timely and professional communication, reducing the risk of errors or misunderstandings that may harm customer relationships.

Top 5 Countries To Outsource Accounts Receivable Services for Restaurants

There are many countries to choose from when outsourcing accounts receivable services for restaurants. However, certain nations stand out for offering high-quality services at competitive prices:

1. Mexico

Mexico is a top destination for accounts receivable outsourcing services due to its proximity to the US, making communication and coordination easier. 

Moreover, Mexican professionals are highly skilled in accounting and have a strong understanding of US business practices. They also offer affordable rates compared with US accountants, making outsourcing to the country a cost-effective choice.

2. Colombia

Colombia is another popular location for outsourcing accounts receivable services for restaurants. Colombian professionals have a good command of various advanced technologies and are known for their attention to detail and strong work ethic. 

By choosing Colombia, you can access the fourth-largest BPO market in Latin America (LatAm) and the 10th in the world.

3. Costa Rica

Costa Rica is a great choice for outsourcing accounts receivable tasks. The country has a highly educated workforce, with a high literacy rate (98% as of 2021) and strong proficiency in English. 

Additionally, Costa Rica offers a business-friendly environment with political stability and strong government support for foreign investments.

4. Dominican Republic

US restaurants choose to outsource accounts receivable to the Dominican Republic due to its proximity to the US, located just 685 miles south of the southernmost tip of Florida.

With a large pool of bilingual professionals, competitive labor costs, and advanced technological infrastructure, this country offers high-quality services that can benefit restaurant businesses.

5. Argentina

Finally, Argentina stands out as a prime location for outsourcing accounts receivable services. Known for its highly skilled workforce, this country offers a variety of specialized accounting services to help restaurants manage their accounts receivable effectively. 

Additionally, Argentina’s time zone aligns well with US business hours, just one hour later than Eastern Standard Time.

Final Thoughts

Outsourcing accounting and accounts receivable services can be a game-changer for your restaurant. It saves time and resources, allowing you to focus on other important aspects of your business while ensuring accurate and efficient management of your finances. 

With the expertise and cost savings provided by outsourcing, you can maximize profitability and cash flow for your restaurant. 

At Near, we specialize in helping companies recruit top finance professionals based in LatAm, many of whom have extensive experience in handling restaurant accounts receivable services. 

Contact us today to learn how to take your restaurant’s financial management to the next level by hiring remote accounts receivable specialists from our talent pool. 

Book a free consultation call to learn more about how to start improving your restaurant’s financial efficiency and profitability.

Frequently Asked Questions

Can anyone do accounts receivable?

While anyone can technically manage accounts receivable, expertise, accounting tools, and attention to detail are required to do it effectively. 

Outsourcing accounts receivable services for restaurants ensures that well-equipped and trained professionals handle this important task, reducing the chances of errors or delays.

How do you run an accounts receivable department?

Running an accounts receivable department involves multiple tasks, such as generating invoices, tracking payments, and managing collections.

Outsourcing these responsibilities to a specialized service provider can streamline the accounts receivable process and ensure that all accounts receivable aspects are handled efficiently.

How many accounts receivable workers do I need?

The number of accounts receivable professionals needed will depend on the size and volume of your restaurant’s transactions. 

On average, one accounts receivable expert can handle 100 to 150 accounts, which means just one is likely sufficient for a small or local restaurant. Chains and big corporations likely require a team of accounts receivable employees.