You’re a trusted service provider. Maybe you’re a lawyer, a doctor, a dentist, or an engineer. Maybe you own another business that provides services. Your time is limited. There are people that haven’t paid you yet for your services. So, what do you do? Do you take the time out of your busy schedule to pursue payments that are past due? Do you hire an employee to do it for you? Do you look into first party accounts receivable management? In this article, we will discuss your options and you will learn why first party accounts receivable management will change your life as a service provider.
DIY Accounts Receivable Management
We know that you already know what we’re going to say. Do you really have time to manage the accounts receivable for your business? How many hours per week do you spend providing services? To manage your own accounts receivable, you’d have to either cut down on the services you offer or you’d have to work more hours.
You’ve heard of the 80/20 rule as it relates to business. You should spend 80% of your time doing things that make money. Collecting on past due accounts doesn’t continue to generate money. It’s quite possible that you’ll wind up feeling frustrated and overworked because you’re providing fewer services and working more. So, let’s look at the next option.
Hiring an Accounts Receivable Management Employee
The next option is to hire an employee to manage the accounts receivable for your service. While it’s certainly more preferable to you providing fewer services or working longer hours, it still has things that you have to consider:
- Salary for a new employee;
- Office space; and
- Benefits
So, for this option the true question is whether an extra employee is cost-effective for your service. It can take a lot of money to bring someone on, train them, get the required equipment, and provide pay and benefits. That’s probably a limited list. You may have other things that you have to take care of when you bring someone on. A new employee can be very costly.
Outsourcing to an Accounts Receivable Management Company
If you don’t have the time (or desire) to do it yourself and if you don’t want to bring on an extra employee, you still have a way to collect on those outstanding accounts. It can even be done in a more cost-effective way! Outsourcing your collections efforts to an accounts receivable management company can take the burden of this time consuming business issue off of your plate. It’s less expensive than hiring an employee.
Here’s how outsourcing your past due accounts to an accounts receivable management company saves you money:
- No additional overhead for your business. You don’t provide office space or benefits. We take care of collecting on your accounts from our own facility.
- No additional work time for you. Your time stays dedicated to what makes you money: your practice. We help increase your productivity by taking collections off of your plate. It’s our specialty.
- You don’t have to take the time to train someone. Our staff has a minimum of 15 years of experience.
- You save money. Instead of adding another person to payroll and hoping that you’re person is able to collect, you pay a specific percentage. That percentage actually saves you about 30% of what it would cost you to pay a full time employee.
Get Your Free Review
At Clients ARM, we strive to help service providers like you save time and collect money. One way that we do that is by providing services just like yours a free review of your accounts receivable management process. Contact us today to schedule your free review and learn how you can save money by partnering with Clients ARM.
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