“Time is money”. A phrase I’ve always known, but never fully understood until I became an entrepreneur.
Everybody is busy, don’t get me wrong – but the life of an entrepreneur is something you can’t prepare for.
I look back at what I used to consider a busy day, and I have to laugh – because that’s now a relaxing day.
But I’m not here to complain, I wouldn’t trade it for the world. The pros outweigh the cons, I just like to mitigate, or if possible – eliminate, all the cons.
It’s tough to do, but when you get there – it’s usually confusing on how easy this seems.
Accounts Receivable (A/R) Management
One of things that I like most about A/R management is its flexibility.
It’s not just one product, it’s a combination of different variations and processes that’s designed to give you the best results.
Listing all of these would take days, and that’d be counterintuitive to our time-saving strategy.
So that’s why I broke down the important parts for you, starting with –
I think we can both agree that time is the most important thing for us, but I’d be a liar if I didn’t say cash was helpful.
Not even in a greedy way, just in a “making life better” sort of way.
We clearly make better decisions when we’re not stressed, and an uneven cash flow will cause unnecessary stress.
Okay, I do have to talk about business a little bit – it’s hard not to.
The additional effects of low cash carry deep into your business. From buying power, growth, not being able to keep up with the competition…. just to name a few.
In other words, low cash creates bad decisions and a ceiling on your growth – something A/R Management can help avoid.
How? Well for starters, professionals are taking care of this for you, and that does wonders by itself.
It’s one less thing for you to worry about and I’m still not sure how to measure that – but it’s amazing.
Then there’s the “business part”. The part where these professionals make sure all invoices are collected, giving you a consistent cash flow.
Whether it’s your good customers forgetting about the bills or your usual customers paying late, it seems like there’s always more A/R to be collected – and that’s what these professionals will do.
So more time, better attitude and consistent cash flow – I’d say A/R management is off to a great start.
The “Do It All Attitude”
I’ve never been one for formulas, but the one I’ll always remember is: Event + Reaction = Outcome.
That can be applied to almost anything, but in this case it deals with – “the vicious cycle”.
The vicious cycle that starts with an unfortunate event, then it compounds into another, and another….and keeps going…… until it’s finally stopped.
And that’s an unfortunate for anybody, but entrepreneurs usually get hit the worst.
Not because they lack effort, it’s actually from the exact opposite – too much of a good thing.
We love what we do, and we can work crazy hours to make it happen….but that also has its side effects….
Like when we try to do everything.
We could bring in the professionals and get all sorts of opinions on what exactly this does to us – but from experience, it can be overwhelming.
And that usually leads to burnout, something that’ll hurt any business.
So what’s the way to avoid burnout? Don’t take on too much.
Saving money is a good thing, but not if it creates more expense (like burnout).
Start outsourcing areas that you don’t enjoy.
(Like Accounts Receivable management)
And avoid this burnout… getting you where you want to be
Outsource Your Way Out
Business is fun at first, but before we know it – It gets to a point of constant worry. Constantly thinking about how you’re going to improve your business and make life better.
Probably not the things you thought about when you started your business, and I’m guessing it’s not something you want to think about now.
It’s natural to get sticker shock when you’re on a new budget – but outsourcing can be a quick investment with a lot of ROI.
Stay ahead of every tasks and focus on what you love – growing your business without the stress.
As the old saying goes, “make money your friend”. You never want to waste your friend, but if he can be more useful to your business – then don’t be scared to use it that way.
I’ve never understood why someone would want refuse $500 in services that can easily produce another $3,000 in revenue….
The options are endless. But if your company has invoices and you don’t want to hire employees at this time – then A/R Management might be for you.
Ideal A/R Management Profile
So we’ve covered the basics of Accounts Receivable management, and now it comes to the important part – is this for you?
The biggest question that usually decides this – do you have accounts receivable?
And accounts receivable doesn’t need to be too fancy, it’s merely a collection of invoices from clients.
Maybe you allow them 7 days to pay, maybe you allow them 30 days to pay – and maybe you don’t have limits at all…
But at the end of the day, you still have accounts receivable.
And if you do, then it’s onto the actual time commitment…..
Asking yourself if you enjoy processing and thinking about accounts receivable?
If you do, then you’re probably covered. There’s no since taking away a task that you enjoy.
But if you’re like the rest of us, it’s probably an area that you don’t like to think about.
An area that’s not necessarily difficult, but one that just takes time and energy.
Time and energy that can used in better places, like increasing sales or improving operations.
And that’s really about it for the ideal profile.
Sure, it get’s a little more complex – and there’s always more details…but in a nutshell – that wraps it up.
A/R Management – Recap
Outsourcing helps business owners, there’s no doubt about it.
We read about it every time, and instead of taking the advice – we instead decide to “save money” and consider these services as a future goal.
That’s a great mindset for every business owner, but it’s also important to remember other concepts.
Like ROI, or making money your friend.
And that’s just the tip of the iceberg.
This category also offers a lot of other benefits – like accepting credit card payments, automated sweep features, sending ACH – etc….etc…etc…
Features I should have mentioned above, but I decided not to – because they’re all located…
So whether it’s A/R Management, Credit Card Processing, or even ACH services – outsourcing is helpful for any business.
If you’d like a free analysis on how this would improve your business – just let us know. We’ll gladly do a quick analysis for you. And yes, it’s seriously free.
We’re here to help, even if it’s not a direct solution that we offer.
Questions or comments? Let us know below!