Accounts Receivable Management for Service Businesses
Accounts receivable (A/R) optimization is an ongoing goal for every company. The quicker and more efficiently you can process payments, the better off you’ll be.
This applies to business service providers as much as providers of physical goods.
And in some ways, it’s even more important. Service-based arrangements can make it more challenging to receive payments on time, if you receive them at all.
Let’s look at some simple ways service businesses can boost their A/R productivity and ensure they’re getting paid their dues.
The Importance of A/R Management in Business Services
The question of business service productivity is simple: How can you set up your operation to keep things running as you help others?
The answer is just as simple: Invest in a business service yourself!
For example, automated account receivable software gives service companies an entirely new way to track customer invoices, manage accounts, and handle payment processing. It’s a tech-centric style of accounts receivables management that yields big benefits for companies.
For example, consider how the consulting firm Vernovis leveraged automated accounts receivable software to improve its manual processes and customer outreach.
With something as simple as a new A/R strategy, Vernovis increased its cash flow by 83% and reduced its average days sales outstanding (DSO) by 25%!s.
The benefits of a stronger A/R process are easy to see:
Above all, improved A/R processes free up resources for service businesses and make it easier for them to provide higher-quality services for their own clients. There’s a lot that A/R optimization can bring your company – but how do service businesses start the improvement process?
Optimize cash flow
Shorten the sales-to-payment cycle
Reduce risk
Improve customer relationships
Minimize the need to invest time in lengthy Dunning processes.
Tips to Improve and Manage Accounts Receivable for Services Industry
Our first tip – implementing an automated A/R solution – is the most impactful change a service company can make to its process. However, it’s not the only technique to improve accounts receivables. Some other easy ways to boost A/R efficiency include the following:
Filter, export, and drilldown on the data quickly
Save, schedule, and automate reports to your inbox
Connect the tools you already use with 100+ integrations
It takes some effort to implement these solutions, but it’s worth the trouble – particularly when you consider the long-term benefits of A/R optimization.
Consider another client of ours, the consulting firm Burwood. With a straightforward application of automated accounts receivable software, Burwood took charge of its collections process, reducing receivables-at-risk (RAR) by 77% and overdue invoices by 60% in only six months!
Invest in your clients by investing in yourself. With A/R management tools behind you, it’s easy to get a handle on your processes.
Best of all, these solutions are easier to find than ever. Bridger’s A/R automation platform offers a simple, user-friendly way for service businesses to uplevel their collections processes.
Aside from optimizing cash flow, Bridger’s platform helps you reduce manual workflows, improves team collaboration, and prepares your company for the future by giving you a scalable way to manage collections tasks.
If a company sends invoices, they can use Bridger. Because of this, there are millions of businesses worldwide that can benefit from the faster payments and optimized accounts receivables that Bridger offers.
We can only reach so many of these companies, so we developed unique ways for partners to make money while helping others grow.
Accounting Firms
Extend your offering and optimise your financial processes with our platform. Gain powerful analytics and reporting tools to create more value for your clients.
Financial Institutions
Enhance your service offerings by facilitating seamless A/R processes for your customers with Bridger. Enable faster access to funds, decreased expenses, and the elimination of errors..
Payment Providers
Connect your merchants to a platform that enables them get paid always, and create additional value for our customers while creating additional revenue streams.
Service Providers
Maintain a competitive edge in the ever-evolving technology landscape and earn additional revenue by partnering with a leading AR solution provider.
"The ease of using Bridger completely won me over. I'm not worried about selling to buyers because Bridger completely eliminates the stress associated with delayed Payments. With Bridger, I get paid."
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