we dont have resources or bandwidth at this time in our AR department who could manage AR and chase customers for outstanding payments. what are some of the methods we can implement.
How do we control our outstanding balances, since Sales people are busy selling .
Answers
Why HR is asking I'm not sure, but...
Find the resources!
If you are selling you are incurring costs and expenses. If you are not collecting you will be starved of working capital and either go into bankruptcy or incur a larger debt and more interest expense.
If you are asking for help, then you aren't getting paid by your customers. You must be in a cash flow bind!
It is amazing how many businesses fall into this trap. Accounting doesn't bring in revenue so they aren't important.
But Accounting is extremely important. Just as they need to make sure that sales are invoiced correctly, and in a timely manner, the A/R division needs to make sure the money is collected.
Sales without collections is a synonymous with a philanthropic organization, which I'm assuming you're not.
Spend the money and hire an individual(s) whose job is collections.
The first (step) and most important point....if you are continually chasing payments, then you have to reevaluate who your customers are or who you extend credit to. The AR process does NOT start when you have already delivered the goods or performed the service. The AR process starts in CUSTOMER SELECTION OR CREDIT EVALUATION. As they say, an ounce of prevention is worth a pound of cure.
Second point, aside from Wayne's point of hiring one, you may want to consider temp collectors either through agency or temp workers. Temp jobs while you address the underlying cause of the problem which is my first point. You may have to be creative in the success/payout structure but the point is, you will still incur some costs and hopefully the benefits will outweigh the cost. If you say there is no current bandwidth...CREATE ONE. Dumping the job to current complement will just create problems in other areas. At best. you will STILL incur costs (i.e. overtime) at worse, have cultural/motivational problems or burn out your staff.