As a receivable manager, your primary responsibility is to manage your organization’s receivable portfolio. Typically the receivable portfolio is the single largest liquid asset, if not the single largest asset, on the company’s books. Your ability to efficiently manage this asset has a significant impact on revenues, cash flow and profitability. It is incumbent upon you as a receivable manager to identify and adopt any and all tools that will help you create greater efficiencies in managing this key asset. The credit department that you oversee, while extremely important, is only one of many tools available to you. It is typical for any credit department to perform certain functions far more proficiently than others. Actions can be taken internally to become more efficient at particular processes that have historically not been strong points within the organization’s credit function. Most often, however, this requires retraining, retooling and the upgrade of current systems. We are living in a business environment dominated by the concepts of working lean and mean and doing more with less. Additional resources to create increased productivity in specific job functions are frequently scarce.
This publication identifies the various components of the Accounts Receivable function that might be outsourced and examines the level of the outsourcing for each.