Many smaller businesses don’t think they have the ability to maintain in-house collections. It can be an overwhelming task to take on, considering all of the cash you need can get tied up in invoices if not properly taken care of. However, sometimes all you need is a little push to see the benefits of in-house collections. Armed with the proper guidelines on accounts receivable best practices, you may find that housing your own collections team ends up being the best option for your business. Below are three benefits from taking on your collections in-house.
The process of collecting on invoices is, in theory, supposed to help you gain cash flow. In all actuality, however, it can sometimes end up costing you money. Between having to take out money to cover costs in the meantime while you wait for payment to sending the invoices out to a collection agency, these processes to collect cost more money in the long run than you’ll collect. If you already have someone on the team dedicated to accounts receivable or collections management, then use them. Use a collections agency as the VERY last option and try to keep in-house collections on