It’s not easy to know when it is time to hire new employees or create new positions as your company grows, especially when it comes to your accounting department. It’s relatively easy to identify when to hire new salesmen and easy to justify that hire because with them, you will be able to close more deals and make more money, right? Making the same decision about accounting functions like collecting accounts receivable is a little bit more difficult, but just as important.
There is no real formula for figuring out when you should turn your part-time position into a full-time one, or how many people you should have dedicated to collecting accounts receivable, but over the years, we’ve come up with a few general rules to help you make this decision for yourself based on your organization’s specific needs. Continue reading
Accounts receivable is one of your greatest assets. It is what keeps your business a float and where most of the focus should be, especially during times when cash flow is slow. The accounts receivable department is not one that you want distracted. You need this department to be the most productive in order to keep your business running smoothly, however, it is admittedly usually the team in most companies that is facing the largest bottlenecks and brain draining manual tasks.
Maintaining a healthy cash flow starts with maintaining a healthy accounts receivable team. These teams should have a set process in place when it comes to dealing with disputes, extending credit and calling on collections. Every organization may be different, from the number of members on its accounts receivable team to the roles that are in place, but, overall, every member should be invested in improving accounts receivable. Below are the five roles every company should have and should be a part of the accounts receivable team.