A sale is realized as and when the invoice is generated but usually, a time period is provided to the customers for the payment of the amount due. The practice of conducting business on credit terms give rise to Accounts Receivable (AR) in the financial statements. The credit facility is laid down to ensure a smooth flow of the working capital into the businesses. there are complexities involved with the accounts receivable i.e. its management, the process of recording in financial statements, credit period etc.

The Account Receivable process includes .

  1. Sales Order
  2. Delivery of Goods/ Supply of Services
  3. Processing of Invoices
  4. Reminder for outstanding Invoice
  5. Collection of Payment
  6. Payment Reconciliation

Following diagram explain it better.

Every entity will have an accounts receivable department and its structure depends upon the size of the business. Accounts receivable section is set up based on the probable number of Customer, the volume of the payments that would be processed for a period of time and the nature of reports that would be required by the management.

Following are the benefit of using the Accounts Receivable from TAM.

  1. Cost Effective - We provide AR service at very affordable price which reduce the operating Cost of Business.
  2. Periodically Reporting – We provide aged receivable report on daily, weekly or monthly basis as per requirement of client. Which give clear understanding to our client that how the customers are performing, which customer is more profitable.
  3. Management of Timely and accurate Invoice - Customer invoicing is always a sensitive function. Proper attention and detailed information require to check before sending it to customer. TAM ensure the accuracy of invoicing.

TAM is an outsourcing accounts receivable firm which can help the companies by easing the accounts receivable accounting services. Partnering with the firm can provide companies with access to manpower and resources which will help in the management of outstanding payments.