If your company is in the highly competitive Software as a Service (SaaS) industry, you understand the importance of offering practical solutions for an operation’s most vital areas. Although you design your software functions to streamline processes and improve efficiencies for other companies, they may not always translate to your own internal operations. Areas like invoice management and accounts receivable often require superior expertise to reduce costs and maximize your company’s cash flow.
At Compass East, we can help you improve your operation by providing a comprehensive invoice management solution. We take a bottom-up approach to the accounts receivable (AR) process to optimize customer invoicing, speed up the payment process and improve overall performance.
What Is Accounts Receivable?
Accounts receivable represent the money a customer owes you for your products or services. This money goes on the assets side of your balance sheet even though your customer has not yet paid you. AR works as a credit line to your customers, sometimes involving different terms based on specific credit limits and purchasing frequencies.
Invoicing is a process that can help track and manage your accounts receivable. When you provide your SaaS to a customer, you issue an invoice to make them aware of the debt and request payment. Careful management of the invoicing process ensures you get paid promptly.
Accounts receivable and accounts payable differ significantly, as receivables represent assets your customers owe you, while payables are liabilities you must pay out.
Accounts Receivable Solutions for SaaS Companies
Because accounts receivable are the primary factors that drive your company’s cash flow, they are one of the most critical parts of your operation. A cloud-based invoice management solution allows you to control your AR operation with minimal effort by automating existing workflows.
Compass East’s invoice management solutions help improve your accounting operation by addressing critical areas like:
- Recordkeeping: This phase helps clean up your accounts receivable by defining them for accuracy and clarity.
- Credit policy: Our solutions help you create guidelines for contacting customers about payment while improving your receivable rates.
- Technology implementation: By utilizing a cloud-based stack, you can quickly implement upgrades and customized options to enhance your AR process and improve efficiency.
Benefits of Outsourced Collection Services for SaaS Companies
Outsourcing your invoicing and accounts receivable to Compass East allows you to:
- Save time: Cloud-based solutions save significant time and money over managing each receivable account individually.
- Reduce costs: Our services eliminate the high salaries required for a dedicated, in-house accounting team.
- Improve efficiency: Faster collections result in fewer frozen assets and increased cash flow.
- Introduce new technology: Our cloud-based system makes collections more user-friendly by minimizing the heavy lifting and manual research.
- Optimize finances: With a better understanding of your assets, you can make more informed decisions about your revenue and future expenditures.