What Does Accounts Receivable Management Mean?

What Does Accounts Receivable Management Mean?

You may have heard the term ‘accounts receivable’ before. Essentially, it’s the amount of money owed to a company for goods or services they’ve provided, but that they haven’t yet been paid for. If this sounds important, it’s because it is – businesses wouldn’t be able to function correctly without this crucial record. So, what is accounts receivable management, and how does it work?

Accounts receivable management meaning

A business’ accounts receivable refers to money owed to a company by its debtors. This is something that won’t take care of itself. Not only does it need to be kept up to date, but outstanding money may on occasion need to be chased – that’s where an accounts receivable management service can come in handy.

How to manage accounts receivable effectively

Some companies choose to manage this aspect of their finances in house, but those wishing to keep costs down and reduce their management burden often look to outsourced options.

Here at Ratiobox, we offer an outsourced accounts receivable management service which will save you time, effort, money and a lot of stress. Our experienced team will keep a close eye on your accounts receivable, ensuring it’s updated regularly. Crucially, they’ll also chase up payments and do all they can to make sure you get paid on time.

We can even assess the credit rating of your customers before they purchase an item from you on credit, allowing you to decide whether to allow the sale to go ahead. We’ll maintain relations with your customers and keep an open line of communication, reducing the likelihood of late payments.

Contact us today

Speak to a member of our team today to find out more about our accounts receivable management service and our other outsourced accounting services – and to discuss your requirements with us. We’re more than happy to answer your questions and talk through what the service offers.