Debt collection is an issue that most businesses, regardless of their level of success, have to deal with. One thing that separates a successful business from the rest is how they prevent debt from hurting their cash flow.
Top-tier companies tie up with expert accounting and bookkeeping companies to handle debt collection efficiently. Without a strategy in place, debts could pile up. This may lead to waste of time, money and resources in chasing up debtors or worse still, result in bad debts.
Accountants and bookkeepers can help you monitor your receivables closely. Because cloud-based accounting software like Xero, MYOB and Quickbooks gives them a real time overview of your account, they can easily detect high-risk debtors and overdue payments.
How online debt collection works
Companies manage debt collections in different ways, depending on their strategies and tools available. Most accounting software can be set to automatically send out reminders to clients once their accounts are past overdue as a preventive measure.
However effective a debt preventive measure can be, some payment overdue can still occur. When this transpires, your debt collection team takes over to communicate with the client and come up with a mutually agreeable arrangement. The goal is to ensure that the debt is paid without damaging the relationship with the client.
Here are some things to consider when looking for an online bookkeeping or outsource accounting company that will handle your company’s debt collection:
The history of the company is a good indicator of how effective they can do the task. Look and dig into their portfolio to see how they have worked in the past. Important questions to give emphasis on are: “have they worked on the same nature of business before?” and “have they been able to handle this size of business before?”
2. Risk management expertise
Another important factor to consider is the expertise offered by the company. Are there enough experts who can handle preventive and implementation risk management systems? Also, will they be able to handle mishaps without compromising the account?
What kind of accounting system are they using? Are they well-versed with state of the art software? Can the team effectively and efficiently deal with your company’s requirements?
For more information about Bureauserv’s debt collection and accounting and bookkeeping services, call us at 08 6500 9777.