August 11, 2020
It is normal to refer the amount due from the recipient as account receivable or simply A/R. account receivable or simply A/R. It represents what the receiver of the invoice owes the service provider. Though making a invoice might seem fairly simple, the fact is it is complex and involves tax laws, contractors’ location (different states) and terms of pricing. Dozens of different parameters come in to play before the invoice is dispatched. It is checked at two levels before it is sent.
The Problem of Error Bills
The consequences of wrong bills, though many, may be reduced to:
• In most cases it leads to mistrust and confusion between the stake holders. It is not just that you will not get paid, it can financial strain your business paying your bookkeepers and accountants in dealing with bills that are full of errors.
• Wrong billing can affect asset accounts, inventory, and cash and accounts receivables. If wrong billing becomes a habitual event, it will begin to show in the company’s balance sheet. Don’t forget that your balance sheet is important for your creditors.
• If you send an invoice charging more than what is actually due and the bill has been paid in full and you notice it, don’t hesitate to admit the mistake. As a first step prepare a bill with corrections, apologize for the shortcomings and include a check for reimbursement. It will build confidence.
A/R Focused Businesses
Recruitment Agencies are among businesses that face lots of problem with invoicing. Though you should be able to address the problem by employing experienced bookkeepers and accounts, it should not be forgotten that this can cost you tons of money.
The other problem is that productivity is bound to be on the lower side. This can only be set right by an automated accounting system that focuses on A/R.
Importance of Automation
Invoice automation is therefore the key to getting paid for recruiting agencies. There are many accounting automation software that can be used to working faster and smarter, but don’t forget that you will still need a enhancing account automation tool like COSNSULT ® that has been especially tuned to convert raw data in QuickBooks to error-free invoices/bills. It can produce bills involving complex tax law compliance requirements, data imported from accounting software and inputs from independent consultants working from outside recruiting agencies.
Recruitment agencies trust COSNSULT® because it reduces not only time but also increases consistency and precision processing of complex tax data input. It relieves billing staff the stress and strain of manually calculating and still falling prey to errors.