The identification of an existing gap in the handling of AP/AR processes can turn out to be profitable. By gaining an expert in the same, the position of a valuable asset to the company can be obtained.
FREMONT, CA: Majority of the businesses have accounts payable and accounts receivables (AP/AR) system in place, regardless of whether it is formal or informal. AP is the amount that the company owes for purchasing the goods or services on credit from a vendor or a supplier. It must be maintained with the discipline to avoid accumulation, leading to large amounts of debt. AR, is the symmetrically opposite of AP, the amount a company has to collect from its customers for goods sold on credit.
Although AP/AR process sounds like a task for the business owners, an equal opportunity for a bookkeeper or an accountant to manage it is also availed since many business people cannot allow the time for it. There are many reasons as to how selling AP and AR services can be lucrative in the long run. Some of them are:
• Digitalization Can Do Most Work:
Newer technologies and software available for management of AP/AR of businesses are much simpler than it sounds. The tech creates ease of tracking all the details to get a clear picture of both parties in AP/AR. Since manual recording is unnecessary, courtesy of the technologies, the job can be carried out quickly without any hindrances.
• Add-On Services At A Premium Cost:
Business owners usually avoid dealing with the whirlpool of AP/AR, as it is taxing and consumes time. But, it is understood as a necessity. This is the sole reason fuelling the increased number of outsourcing in AP/AR tasks and processes. The business owners understand the impact and value of the functions to be executed. Which is why a professional is paid to carry out the transactions and analyze them rather than spending time on it by themselves diligently.
• Practice Grows Through Referrals:
Similar to businesses, most industries often drink from the same pool; entrepreneurs are acclimated to other entrepreneurs. These like-minded business people are focused on growing their businesses. Since the administrative tasks are not in their interests, the gaining of additional clients via word of mouth from a customer to a future-customer is the way to grow the business.
• Gaining Exposure To Data That Wouldn’t Have Been At Disposal:
By offering AP/AR services to another firm for effective handling, the expenses and revenue can be understood in firsthand. The information not only presents diverse examples of a successful solution but also helps create a stabilized profit input. Using this data and knowledge, insights can be provided to assist in the growth of the business and enable oneself a consultative role.
• Provision Of Better Insights And Advice To All Clients With Data:
The data accumulated over the process of handling AP/AR is not useful for only one client alone; it can be leveraged to provide quality insights to other clients in the same circumstances. With the development of a solid understanding of the mechanisms of AP/AR works, a niche area expertise can be gained. This results in personal growth and upgrades of positions as chief consultants.
By selling AP/AR services to the clients, with added expertise in the area, an optimal position for the knowledge can be gained. A professional can become a valuable asset to many business owners, regardless of the industry or field.
