What You Need to Know About Managing Accounts Receivable

By Mark Polendo:
By: Mark Polendo:
Over the last decade several companies in the vast industry of ophthalmology have struggled to maintain a healthy balance sheet due to increased competition, advanced technology in laser surgery, and insurance companies dictating how reimbursements are applied. This has created much turmoil for vendors and suppliers in the optical lens industry because many Doctors feel they are not obligated to pay the end users until they have been rectified themselves. Accounts receivable management is still a core function of your business; and, as with any other aspect of your business, it must be managed effectively to produce the best results while avoiding costly mistakes.

Utilizing an outside accounts receivable management company to manage your receivables is a cost-effective solution that more and more business owners are turning to in an effort to improve company processes. This allows the trimming of unnecessary internal costs and time. Since most third-party accounts receivable management companies will only require a fee upon any successful collection of a receivable, you can be assured that there will be no wasted money, since you only pay for actual results, not attempts. There are ZERO up front costs when utilizing the service of Tucker, Albin & Associates and there are no costly retainers required as when using an attorney.

When you outsource the responsibility of collecting your receivables through an experienced third-party accounts receivable management company, you are utilizing a company that is in the business of managing receivables professionally. When dealing with a delinquent account, these companies can provide an alternative form of financing to help satisfy the debt originally incurred. Companies like Tucker, Albin & Associates can also provide immediate recovery of the delinquency if alternative financing is unavailable due to the credit status of the delinquent customer. In other situations, providing the customer with an outside source of financing, helps eliminate the usage of the original creditor as a bank. The customer can utilize a financial institution for its purpose opposed to using the creditor as an interest free lender.

The company can also provide a streamlined approach in order to satisfy a seriously delinquent account. Sometimes the customer that may be delinquent is in need of accounts receivable help as well. With the approval of the original creditor, a third-party accounts receivable management company can provide the accounts receivable service for the customer with the firm understanding that the original creditors balance is resolved initially. Doing this allows a solid long-term relationship moving forward between the customer and the original creditor. This proves to create a stronger relationship opposed to the end of the customer/creditor experience and gives you the opportunity to increase profits and bring back a profitable customer. Accounts receivable management companies focus their efforts on the task of recovering debt and finding solutions. This allows you (the creditor) the important time to focus on the growth and everyday occurrences involved with running your business.

Another benefit of outsourcing your receivables to an experienced accounts receivable management company is that it eliminates any possibility that you or your staff will make costly errors. There are many complex rules, laws and statutes that govern the actions of an accounts receivable management company. These regulations in place specify the dos and don’ts of pursuing debt. Failure to comply with a single guideline for the area where the debt collection is taking place can result in huge fines and additional liability for you and your company, including potential criminal liability. Outsourcing to an experienced third-party accounts receivable management company will protect your company from such liability, by ensuring that your receivables are managed by professional agents trained to remain in compliance while pursuing the matters at hand.

In closing, Tucker, Albin and Associates invites you to personally “test drive” their FIVE DAY DEBT RECOVERY program. The delinquent accounts you may incur will be immediately received, handled and communicated on day ONE! Within the first week, Tucker, Albin & Associates will have the funds collected or have an anticipated resolution in place, otherwise the account will be closed and all customer findings will be reported back to the creditor, free of charge.

Mark Polendo is the director of client service at Tucker, Albin & Associates. You can reach him at 877-455-4572 ext. 569 or via email at m.polendo@tuckeralbin.com. Check their Website at www.tuckeralbin.com

CURRENT ISSUE


May/June LabTalk 2017