Focus on the PeopleYour employees are the foundation of your business, whether they are working remotely as part of an outsourcing arrangement or sitting in cubicles in your office. It’s important to staff your AR department with skilled workers who have the right customer service, communication and accounting skills. What qualifications will your AR team have? What training and degrees will they come equipped with? There is always the balance to consider between “hiring for skill” and “hiring for organizational/team fit”. Do you administer behavioral or personality tests during the interview process to help find the right candidates? Other things to consider when staffing your AR department can include the following: What training will you provide? What reward system do you have in place to recognize outstanding performance? How can you help make your AR team’s job easier? This could entail anything from software to scheduling, furniture to overall appeal of their physical work environment and more. How can you help your team manage the frustrations that come with this particular job? Focus on the people, and the people will focus on taking your business to the next level. If you do choose to work with an outsourced accounts receivable team or with a collections agency for just the significantly overdue accounts receivable, you should partner with a company that takes hiring just as seriously as you do. What is the company culture?
Pay Attention to KPIs (Key Performance Indicators)What are your key measures of success for your accounts receivable team? Some of the most popular and successful KPIs include:
- Average days to invoice
- Past-due balance calculated as a % of total accounts receivable
- AR greater than 120 days