Topics: Accounts Receivable Process
Posted on January 08, 2018
Written By
QX Global Group
Recruitment businesses have a unique flow of routine transactions; therefore, it becomes very important to understand the business type before working on the transaction processing in the system. Mainly the revenue and cost flow from temp workers deployed at various hospitals and healthcare trusts.
As a leading accounts receivable outsourcing services provider, we have helped several agencies streamline their AR process. The AR process is a bit tricky in the recruitment sector, considering the volume of transactions. Most of the recruitment companies have either daily or weekly pay/bill cycle resulting into hundreds of transactions for each frequency. The high volumes and complexity can lead to a number of challenges.
Reducing DSOs is the prime objective and one of the biggest challenges for finance leaders in recruitment agencies – cash flow issues always plague this sector and getting paid on time is critical to the success of the business. Some effective methods for reducing the DSOs are:
Improving the efficiency of the accounts receivable function is another key challenge. Inaccurate invoices, late invoice delivery, missed invoices are all too common. Missing remittances, wrong allocation, split remittances and partly allocated remittances often lead to challenges in cash flow allocation. In order to overcome challenges related to efficiency and productivity, it is essential to get the below points covered:
Reliable accounts receivable and credit control are critical to maintain a good cash flow. To fuel the growth of your agency, make sure that you make this is your strongest link. To discuss this topic in detail, feel free to get in touch with us.
Originally published Jan 08, 2018 07:01:27, updated Jul 03 2024
Topics: Accounts Receivable Process