There are many advantages of outsourcing to India. One of the main advantages is saving your money in infrastructure. You can save money because you have full control over expenses. Your business plan can help you in maintaining potential sale of your business. Your cash flow will be stable by eliminating assents. Strategic optimization is the main advantage because you can make a strategy to focus only on your core business.

 

Accessing latest technology is also one of the main advantages since the third party is expert can manage your work in an efficient way. Your own valuable resources can work on company core operations. Time is more precious than anything so you can save time in managing your non-core staff. Value added service is also one of the main advantages. You might be worried about security; outsourcing removes all your problems. You can discover latest technology for your core business. Some companies enjoy benefit of reduced labor cost and larger workforce.

How to collect account receivable quickly

Account receivable Turnover is a measure of frequency of payment you are getting from your customer. Cash flow should be streamlined for your business. Credit sale money should be collected quickly because higher ratio indicates that your customers are paying your money in fixed time allotted to them. The formula for account receivable turnover is net credit sales divided by average account receivable.

 

If your customer purchases goods and services but the time period exceed for returning your money then you can send invoices. Sending invoices is not a good way for your long term client. Invoices are the legal ways for collecting your money. There are two main factors that affect account receivable turnover. Your payment terms and condition should not be too tight because your competitors can take benefit.  Many companies set payment terms in 30 days. You can shorten your credit extended days. Your billing efficiency plays a major role so try to give some incentives for rapid payment of invoices. So if youraccount receivable turnover is high that means you are running a smart business.

How to manage your account receivable

The first important step is to maintain some condition at the time of giving your account receivable to some other client. Extendingyour account receivable is not a good for financial health of your company. But extending account receivable is important for competitive market because if your competitors are giving this option then you have to give for attracting more customers. This is a great way to keep your customer coming back to you.

Running an account department is not an easy task always assigning an employee for looking all these stuffs. It has to be done in a right way. There are some amazing software’s available in the market which can help you for maintain your invoices.

Always keep in mind your profit margin because you can extend your credit from customer according to profit your organization is getting. Cash flow should be streamlined for growth of your business. Check yourworking capital too before extending your account receivable. You should have complete detail of all who owe your money as account receivable.

Why outsourcing to India is good for expanding your business?

India isknown as best destination for outsourcing technical as well as non-technicalwork. There are several reasons why company must seriously think about outsourcing to India. All business are under pressure for producing huge volume of work and generating quality work with more revenues. Outsourcing gives you a opportunity to handle your efficient resource in a good way for example all of your employees can work as team leader can handle many outsourcing projects. So the output of each member will get increased.

Indiansare highly educated they do have degrees with the top colleges or finestuniversities. It is true that your culture and language is totally different but the advantage is Indians are fluent in speaking English as compared to any other outsourcing country. Business are always unpredictable so if you outsource your non-core task then your risk will be shared .since the expert outsourcing partner  know how to handle and how to work in reverse situation. It will increase your company scalability.

India is a best place for low cost and companies are even flexible with pricing. The task of finding appropriate report is not a easy job so outsourcing reduced all these stuff. You will be able to focus completely on core task and full time employees.

WHY FACTORING ACCOUNT RECEIVABLE.

Cash flow is also known as success of every business. As a business grows and it is require to speed up cash flow. Sometimes because of tough credits financing option account receivable factoring fulfil the need of working capital. Account receivable factoring is a process when a business sells its account receivable to a factory company or bank. The available amount generally depends on invoice volume generated.

Small business sometime sold a larger amount of their account receivable to customer for selling their goods and services. In such cases factoring plays a major role . The factoring is based on credit strength of customer. Banks look for strength to provide loan. You will get quicker setup of funding because these lines can be approved within few weeks. Factoring companies have more streamlined strategy to collect payment. They are able to do this because they are relying significantly on credit strength of customer.

This allows you to expand your business quickly. These companies are collecting account receivable with cash. Factoring companies verify invoices with customer and client which in turn increase the probability of receiving all account receivable.