Diligent cash management is essential for maintaining business processes. Cash flow is one of the key factors for the success of any enterprise. A study revealed that 82% of all companies cited cash flow problems.
Cash Management Requires –
- To know the aspects where cash needs may occur
- To know the best sources to meet urgent cash requirements (overdrafts, Bill of Lading, working capital loans etc.)
- To maintain good relationships with financial institutions and other creditors
To find long-term solutions such as outsourcing business processes to improve cash flow
How Outsourcing Helps Improve Cash Flow
Companies prefer outsourcing services to combat rising overheads and operational costs. Outsourcing solutions provide access to global resources, high-quality talent, reliability, flexibility, shared risk, considerable ROI, and easy cash flow.
The following outsourcing options to improve your company’s cash flow:
1. Talent Availability at Reduced Costs
Outsourcing allows you to shift the fixed cost of full-time employees (a full-time salary) to a variable cost of an outsourced team for a specific business function. This frees up your cash flow to expand your business and put it to various uses. Outsourcing is beneficial all stages of a company or new project.
Improved cash flow will also help in increasing the attractiveness of your firm for an investor.
Outsource Accounts Payable to Improve Cash Flow
Strategic Accounts Payable management can help to control cash flow. Few best practices for Accounts Payable management as below can help your company in shortfall:
- Consider the payment conditions with each creditor that the provider offers. Seek out flexible payment options.
- Utilize your vendors’ payment arrangements to the maximum degree possible. If it is not necessary to pay for 20 days, choose to make payment on the 20th day with electronic payments. This is an easy most companies utilize to retain more cash in their business for a longer period.
- Use discount offers on early payments, along with considering cash flows. Early payment discounts might not be always worthwhile. If you have maintained a sound relationship with your banks or other creditors, you can use an overdraft facility to make early payments and forfeit discounts.
Hire professionals to deal with accounting for your company who can help predict cash flow and find ways to get maintain cash as required. cash for your additional cash requirements in your business.
2. Maintain Cash Flow with Outsourced Receivables (Accounts Receivables)
The most crucial aspect of receivables management is ensuring in-flow of money and timely payment from customers. Using best practices to sustain receivables to avoid cash flow concerns as below can help:
- Timely invoice and follow up on overdue accounts as soon as possible.
- Offering rewards on early payments helps align cash flow as it avoids most late payments. If clients tend to run late payments, consider offering discounts on quick payments. Double-check your profit margins while deciding on a discount rate.
- An electronic payment facility as payment option can be a great start to encourage – the customers. E-payment mode makes payment more manageable, more accessible, and faster. Keep track of your receivables. It will help you to keep an eye on clients with regular overdue payments.
All such and many more strategic activities are covered under outsourced accounts receivables. You can find leading outsourcing providers with automated invoicing and various features like payment reminders to alleviate the account bookkeeping workload.
3. Save on Technology Investments
Outsourcing providers free you from huge investments in technology or custom infrastructure. Technological advancement, necessary for increased competency in the industry, is easy with outsourcing. Outsourcing solutions using integrated software can automate your back office. Automated data entry solutions give you access to highly accurate financial data and cash flow figures, scheduled bill payments, collections., Thus, leading to a well-coordinated cash flow management in your company. It will save your time and bypass cash flow issues by automating your bookkeeping processes.
4. Tax Preparations
A company requires timely and accurate tax compliance to avoid regulatory actions and charges. Outsourcing partners provide businesses with an efficient way of handling their tax compliance workload.
Thus, bookkeeping and accounting outsourcing can help to manage your cash flow in the company.
ARDEM Solutions to Improve Cash Flow
ARDEM is a leader among the USA accounting outsourcing firms providing the following outsourcing services:
- Financial Management
ARDEM helps in financial management by reporting, cash flow forecasting, payroll allocations, sales tax filings, automated transactions, and more.
- Invoicing Automation Services to increase efficiency and cost savings
Invoice processing is a challenge for most companies due to the diverse formats with different vendors. Our advanced data capture technology helps to increase accuracy, compress cycle time, and reduce operating costs.
- Data Entry Outsourcing Services to quick turnaround times with accurate data
ARDEM has ranked #1 as a Data Entry Outsourcing Company in 2021 again. We serve our client with Cost-Effective advanced automation processes for double-key entries that result in processing precision. Technology helps to expedite huge data timely and make smarter decisions with valuable insights. You can experience an immediate cost reduction of 30%.
- Quickbook Accounting Services to reduce your processing costs.
ARDEM’s quickbook accounting helps clients to manage account receivables and payables processes by entering received payments, bill payments, and automated payroll processing.
- Reconciling Accounts
Take benefit of quickly reconciled accounts using your bank statements and other supporting documents. Automation helps ensure consistent and accurate recording of transactions.
For outsourced bookkeeping services, Quickbooks, remote accounting, US accounting services, you can connect with ARDEM.
ARDEM provides Business Process Outsourcing and Business Process Automation Services to established companies to help them improve operational Efficiency and Reduce Costs. For more information, please reach out to us at email@example.com or call us at 908-359-2600.