Filling in the Gaps
Date
June 6, 2013
Since the beginning of the economic downturn several years ago, many companies have been trying to do more with less people as a way to compensate for depressed sales and increased bad debt. Often times, this creates a work flow gap, especially in the accounts receivable department. As staff count decreases, companies quickly reach a point of diminishing returns where there is not enough staff to adequately cover all the tasks required to meet internal credit and collection policies. As a result, accounts that should have been recovered in-house prior to going to an agency age past the point of collectability and cause a greater loss of profit.