Why you should leave your accounts receivable to an expert
When e-commerce companies grow, a certain amount of complexity inevitably arises in accounting. The six biggest challenges can be solved by outsourcing accounts receivable management and accounting.
The online store is growing and with it the complexity of accounts receivable management. All payment transactions need to be monitored - from the purchase in the online store to the receipt of money in the company account. Added to this is the management of vouchers and vouchers for goods, the control of cancellations and credit notes as well as the preparation and dispatch of dunning letters.
The administrative burden for the online retailer increases
The increasingly popular subscription models also need to be billed correctly. Many retailers also offer several payment options in order to maximize customer convenience during the purchasing process. To do this, they work together with various payment service providers (PSPs). The administrative effort for the online retailer increases enormously. And it doesn't make working with the tax consultant any easier either.
If you want to do everything yourself, you will quickly reach your limits. This is where business process outsourcing comes into play - external service providers take over parts of the business process and thus relieve the company. The company can now concentrate more on its core business. As a specialist in bulk billing, nexnet GmbH supports its customers primarily in the areas of accounts receivable management for e-commerce and subscription billing and the monitoring of payment service providers, known as payment clearing - regardless of industry and at individual transaction level. This results in six key advantages for the merchant compared to self-management:
6 challenges - one solution
1. manage several payment service providers simultaneously
The complexity of financial management increases with each additional payment partner that pays out money to the store operator and provides settlement files. If you work with several PSPs, it becomes increasingly difficult to say exactly whether individual payments have already been made by the buyer. Or has been transferred from the PSP to the merchant. Instead of reconciling the data with complex, self-built solutions, it is more economical to outsource the process. With the automatic allocation of payments per shopping cart, the retailer knows immediately whether the money is still with the customer, with the PSP or already in the company's bank account.
Transaction fees are recorded without input tax. And they are reconciled with the outgoing amounts. What is important here for the merchant is that payments and orders from the customer and PSP are not summarized, but are recorded at individual transaction level. As the summaries cause problems for the accounting department and the tax consultant.
2. payments always in view
If a retailer loses track of its outstanding receivables or fails to respond in a timely manner, this poses a problem. This is a particular challenge for young or small companies. Their own liquidity is at risk.
By monitoring the payment behavior of customers and payment service providers, the accuracy of all figures is ensured for all individual and bulk transactions. In this way, the company remains liquid.
nexnet offers individual solutions for receivables management that are tailored to the company's requirements. In addition to the commercial dunning procedure, nexnet takes over the preparation and dispatch of dunning letters, the management of dunning charges and the monitoring of payment behavior. In the further course of the dunning procedure, it is also possible to automatically transfer receivables to a preferred collection partner.
3. management of subscriptions and recurring payments
Just a few years ago, subscription services were limited to print media such as books, newspapers and magazines. The music industry followed later. As digitalization grew, the subscription model exploded.
Driven by customers' desire for greater convenience, there are countless subscription-based products available today. Start-ups in particular are increasingly targeting long-term customer loyalty through a subscription model. Customer acquisition costs can be reduced and revenues can be better predicted. Established companies on the market also need to address the issue of subscription models.
The way subscriptions work has changed. Today, they are much more flexible and customer-oriented. The focus is shifting away from the product and towards the customer.
At first glance, introducing a subscription model seems simple: develop a monthly price for use. Repackage the product or service. And get a software tool that invoices customers at regular intervals and processes payments.
However, the reality is different even for companies with low complexity. Companies that are successful with subscription models know the impact that switching to a subscription model can have on the entire business and financial infrastructure. However, many companies underestimate this impact.
4. clean month-end closings with less effort
Communication with the tax consultant is probably a point that could be simplified for most companies. The PSP business in particular can cause problems here. Outsourcing can also solve a major challenge here. By recording all business transactions in the accounts, the company can easily obtain a certifiable monthly statement.
5. no problems with international transactions
Internationalization combined with various currencies and tax rates can cause a lot of headaches for the accounting department. For companies with an international focus, nexnet processes and posts all cash movements in all currencies using daily exchange rates. It goes without saying that turnover and VAT are recorded using international tax rates. For companies with an international focus, nexnet can also map accounting in accordance with local GAAP.
6 Maximum security - with a constantly changing legal situation
Monitoring legal regulations and changes is very time-consuming. Especially as there are often changes that affect accounts receivable management and accounting. Therefore, an analysis and evaluation by expensive specialists such as lawyers or auditors is often necessary. When outsourcing this area, part of the responsibility can be transferred to the service provider.
Payment clearing solution for small and medium-sized enterprises
Not only global players are bound by international standards in their accounting. Start-ups and smaller companies must also comply with all guidelines. However, it is often financially impossible for them to consult external specialists. The payment clearing solution from nexnet GmbH can be the solution here. This is because cloud computing incurs hardly any entry and operating costs. In addition, the young entrepreneurs can focus entirely on growth. While the service provider automatically handles the complex accounting processes in the background.
Thanks to the cloud approach, the payment clearing solution offers the advantage of transparent and low entry and operating costs. Companies can concentrate on their business. And leave the complex accounting processes to us. Which we handle automatically in the background. From as little as 99 euros per month, online retailers can monitor their payment service providers and have a verifiable monthly statement prepared.
Are you losing sleep over the many invoices you generate with your digital business model? Then business process outsourcing is the right choice for you. Contact us now.
