What we often observe in receivables management:
Who likes to admit that they could have gotten more out of the debtor? Who admits to their managing director or commercial manager that they could have realized a receivable or avoided additional costs by taking a more clever or faster approach?When accounts receivable management is conducted exclusively internally, the temptation is great to sweep problematic cases under the carpet or to turn a blind eye to them. This is a phenomenon that we often observe in companies that, before switching to us, exclusively handled open receivables themselves.
This is the problem for receivables management:
Companies let profitability and liquidity fall by the wayside. There is too little transparency, comparability and honesty in internal receivables management. For superiors, it is often difficult to judge whether employees have achieved the best possible result.With external partners, realization rates and speed can be checked much more objectively. The willingness to question external service providers is also often significantly higher.
How you can improve your receivables management:
Step 1: Get a picture of the realization rate for open receivables. You will find that in most cases the person responsible is not even aware of this.
Step 2: Review the unrealized receivables of the last few months in bullet form. Answer honestly whether the internal procedure was optimal.
Step 3: Contact an external service provider and check whether they could not achieve more for you.
This is how we can help you if you want to improve your receivables management:
We analyze whether your receivables management is already set up in the best possible way.Our experts can critically examine your receivables management processes and provide you with benchmarks in terms of realization rates.