Outsource accounts receivable — reduce DSO, improve cash flow

What does an accounts receivable specialist do?

An accounts receivable (AR) management specialist runs the entire process of outstanding receivables, from issuing invoices through to resolving disputed items and escalation on non-payment. It is not about sending reminders; it is about systematically safeguarding your cash flow and preventing avoidable losses.

Invoicing and follow-up: timely and accurate invoicing is the foundation. A specialist ensures invoices are sent error-free, at the right time and to the right contact — with structured follow-up on late payments before they become overdue.

Structured collections: when payment fails to arrive, a tailored escalation process follows: reminder, demand, pre-legal step. Every contact is documented and consistent in tone, aligned with your house style and relationship management.

Reconciliation: incoming payments are processed and cleared daily. Open items are monitored using aging reports. Discrepancies are flagged and resolved proactively, not discovered months later at year-end close.

Dispute handling: disputed invoices are analysed, communicated and resolved. A specialist distinguishes genuine disputes from delaying tactics and handles both appropriately — without straining the relationship unnecessarily.

DSO reporting: you receive periodic reporting on your Days Sales Outstanding, aging distribution, collection success and outstanding risk. Data that enables you to make targeted decisions on customer policy, credit limits and cash-flow planning.

The cost of poor receivables management

Organisations consistently underestimate what a high DSO and a poorly organised receivables operation truly cost them. The direct costs are visible; the indirect costs far less so.

Direct financial impact

A DSO of 60 days instead of 35 days on a receivables portfolio of €5 million means €342,000 in additional working-capital tied up. At a financing rate of 5%, that costs €17,000 per year in interest — on top of the missed return on that capital. For larger portfolios these amounts quickly run into six figures.

Write-offs on uncollectable receivables cost the average financial services provider 0.5–1.2% of annual revenue. At €20 million in revenue that is €100,000–€240,000 per year coming straight off the margin — and in most cases avoidable with a professional collections process.

Management attention and operational cost

Poor receivables management leads to escalation to senior management: legal proceedings, customer conflicts, internal meetings about problem accounts. Every hour an account manager or CFO spends on an overdue invoice is an hour not spent on growth. Research indicates that organisations with an ad-hoc collections approach lose on average 40% more management time to receivables escalations than organisations with a structured process.

Regulatory exposure

In regulated sectors — such as leasing, insurance and lending — a poorly documented receivables operation can lead to findings during a supervisory inspection. Regulators expect licensed entities to have adequate procedures for monitoring outstanding obligations. Incomplete or inconsistent documentation is a risk area that auditors and supervisors examine closely.

How Finaxis reduces your DSO

Our approach combines process optimisation, disciplined follow-up and data monitoring. We start with an analysis of your current aging distribution, collection processes and system configuration. On that basis we draw up an improvement plan with concrete DSO targets and a timeline.

The results we achieve are consistent across sectors. The table below gives indicative averages based on Finaxis engagements over the 2022–2025 period.

* Indicative averages based on Finaxis engagements 2022–2025. Results vary by portfolio and organisation.

The key to these improvements lies not in collecting more aggressively, but in intervening more systematically and earlier. We prevent invoices from becoming overdue by starting structured follow-up before the due date. When a payment does slip, the escalation chain is clear, documented and consistent.

Our approach: from invoicing to collections

Finaxis applies a phased approach that fits your existing operation. We integrate into your technology environment — ERP, receivables platform or accounting package — without forcing you into platform migration or system replacement. We work with what you have, and optimise the processes around it.

Phase 1 — Analysis and baseline (week 1–2)

We map your current portfolio: aging distribution, open disputes, communication history and system configuration. On that basis we produce a realistic DSO forecast and identify the fastest improvement opportunities.

Phase 2 — Operational start (week 2–3)

We take over the day-to-day receivables operation or reinforce your team. All communication goes out on behalf of your organisation, in your house style and tone. Customers notice no discontinuity; internally you see an immediate shift to a more systematic approach.

Phase 3 — Structural improvement (month 1–3)

We actively steer towards DSO reduction through disciplined follow-up cycles, escalation protocols and monthly reporting. Disputed items are handled in a structured way; problem accounts are flagged in time for a decision on credit limit or relationship.

Phase 4 — Reporting and knowledge transfer

You receive monthly management reporting with DSO trending, collection success and portfolio risk. On completion of the engagement we fully hand over the improved process to your internal team, including documentation and process descriptions.

For broader financial operations — including underwriting and compliance — see our page on underwriting outsourcing and CDD/KYC compliance. Need an embedded AR specialist instead of a fully managed service? See our freelance page.