For B2B Companies
Outsourced accounts receivable management
JSD takes responsibility for a defined portion of your receivables follow-up and works within the systems you already use, bringing experienced commercial account management to the work.
- Your staff keeps billing and cash application
- JSD handles the agreed receivables follow-up
IACC Sustaining Member and BBB A+ rated.
The Basics
What accounts receivable (A/R) management is
AR management, sometimes written A/R management, is the work between sending an invoice and getting paid. Someone confirms the invoice reached the person who approves it, follows up as it ages, clears up disputes, and arranges payment when a customer needs time. Outsourced AR management puts an outside team on that follow-up while your staff keeps billing and cash application moving.
Invoice issued
It goes out with an agreed payment date.
Receipt confirmed
The approver has it and owns it.
Follow-up as it ages
Calls and emails on a set schedule.
Holdups cleared
Missing documents found, disputes answered.
Paid
Or a date is agreed and followed.
In-House or Outsourced
AR management outsourcing compared with hiring AR staff
The need usually shows up the same way. An AR person leaves, or the 30 to 60 day bucket grows faster than the team can call it. Both paths work, and the right one depends on how your receivables run.
| Topic | JSD's team | Hiring in-house |
|---|---|---|
| Time to start | Work can begin once the scoping call is done and we can see your receivables. | Recruiting and onboarding take weeks, though you choose exactly who joins the team. |
| Training | The team already collects commercial accounts. What it learns from you is your terms and contracts. | A new hire learns how to collect, then how your business bills. |
| Cost | A commission on what is collected, so cost follows results. | Salary and benefits are fixed each month, which can be good value when invoice volume is steady and high. |
| Coverage | A team covers your accounts, so follow-up keeps its schedule. | One person means gaps during vacations or turnover. |
| Closeness to your team | Works from your data and reaches your staff whenever an account needs an answer from your side. | Sits beside sales, billing and customer service, which helps when accounts need constant coordination. |
When in-house is the better fit
Hiring your own AR specialist is often the better call when receivables need constant back-and-forth with sales, billing and customer service. We will tell you if that describes your business.
How You Pay
AR management paid by commission on what is collected
There is no setup fee and no monthly charge, so nothing is owed in a month that collects nothing. What matters most is being clear up front about what earns a commission.
- $0
- Setup fee
- $0
- Monthly charge
Accounts in scope
Before work starts, we write down which accounts are in the program, so everyone knows what JSD is working.
A rate you know up front
The percentage is agreed on the scoping call, before anything begins.
What counts as collected
Which payments earn a commission is defined at scoping, not after the money arrives.
How We Work
Our accounts receivable collection process
Two things decide how well outsourced follow-up goes: who is making the calls, and what they are calling about.
Expertise
Collectors who work commercial accounts every day
JSD has collected commercial accounts since 1997. That experience shows in who gets the call, what gets asked, and how a held invoice is moved toward an answer. The team already knows how to find the person who approves payment.
Efficiency
Calls go to balances that are still open
Follow-up runs on current data. Which accounts are worked first, and how early in the aging the work begins, is agreed on the scoping call. Each refresh adds new invoices and recent payments, so effort is not spent on money that has already arrived.
A program we have run
How an ongoing enterprise program worked, step by step
- Client
- Large enterprise client
- Type of program
- Ongoing receivables follow-up on the client’s behalf
- Data
- An AR aging report that kept every balance current
Backup sent up front
The client sent supporting backup for the accounts at the start, so every balance could be worked with the documentation in hand instead of waiting on it later.
AR aging report kept us current
The AR aging report kept JSD current on billing. As balances were paid, adjusted or newly aged, our working list stayed in line with the client’s billing.
Follow-up on accounts in scope
Each account in scope was worked from that report and the backup: contacting the customer, confirming the balance, and moving it toward payment or resolution.
Client-side action, when needed
Where an account required a document, correction, or decision from the client, JSD coordinated the request. When authorized, we handled those tasks directly.
Your Data
However your receivables are kept, JSD can work from them
Your receivables go in one side, each account is organized in the middle, and the outcome of each account comes back out. How the data reaches us is up to your setup.
Your receivables
- Customer AINV-104247 days$12,400
- Customer BINV-103862 days$8,950
- Customer CINV-103138 days$21,300
- Customer DINV-102775 days$5,600
- Remote desktop
- Aging file
- Customer portals
- Your setup
How accounts move
- Accounts put in the agreed order of work
- Follow-up scheduled on each account
- Contacts noted on the account
- Account balances updated from each new aging report
Refreshed whenever your data is.
Account outcomes
- Paid
Closed out
- Promise to pay
Date set, follow-up booked
- Waiting on PO
Request sent to your staff
- Dispute answered
Response back to customer
Ways it has worked, and they can be combined
- Has worked well
Remote access to your system
You issue JSD a login to your own environment and we connect through a remote desktop session such as Azure Virtual Desktop. You control the login and can end it whenever you choose.
- Has worked well
An aging report on a schedule
Send the aging as a spreadsheet or a system export on the schedule that suits your volume, daily when needed.
- Often added
Logins to your customers' portals
Many customers want invoices submitted through their own portal. With your logins, we pull the documents an account needs.
- Your setup
Something different
Tell us how receivables are tracked today and we will say what arrangement fits. It can change as the work does.
Describe your setup
Day to Day
The accounts receivable services JSD handles
The work is the follow-up your own team would do with more hours in the day. How early in the aging it begins is settled on the scoping call.
Calls and emails
On a schedule agreed before work starts.
Missing documents
Purchase orders and proof of delivery, found and sent.
Disputes
Why an invoice is held, and the answer from your side.
Payment arrangements
Dates set within limits you control.
On Your Behalf
Your customers know who is calling
JSD contacts your customers as JSD, not under your company's name. Calls come from JSD's phone number and emails from JSD's address, and every contact says who we are and which invoice it concerns. A customer who understands the call is more likely to route the invoice to the person who pays it.
“Hello, this is [name] with JSD Management, calling on behalf of [your company] about invoice 1042.”
When an Account Needs More
Ongoing AR follow-up compared with placing an account
With AR management, JSD follows up on your invoices on your behalf while the customer relationship is still routine. Placing an account is the next step, when it needs a full commercial collections effort. JSD does both, and one can lead to the other.
| Topic | AR management | Placement |
|---|---|---|
| Account age | From the point in the aging you choose, while the customer relationship is still routine. | Past due long enough that your own follow-up has stalled. |
| Who the customer hears from | JSD, calling on your behalf about your invoice, in a courteous tone tied to that invoice. | JSD, in a formal collection effort with firmer demands. |
| Fee basis | Commission on amounts collected, agreed on the scoping call. | Contingency fee of 10% to 50% of the amount recovered, set by account age and balance. |
| Where it ends | Accounts still unpaid can be placed for collection, with your approval. | Resolved by payment, or referred for legal action once you approve the filing costs. |
For help deciding which one an account needs, read when to place an account.
What is accounts receivable management?
Accounts receivable management is the work between sending an invoice and getting paid. It covers confirming the invoice reached the person who approves it, following up as it ages, clearing up disputes, and arranging payment when a customer needs time. Outsourced accounts receivable management puts an outside team on that follow-up, acting on your behalf.
What does an accounts receivable management company do, and what do outsourcing services include?
An accounts receivable management company takes on some or all of the follow-up between invoice and payment, acting on your behalf. Outsourced services typically include scheduled calls and emails on open invoices, tracking each account's status, finding missing purchase orders and proof of delivery, answering disputes, and agreeing payment dates within limits you control. Which accounts are in scope, and how early in the aging the work begins, are settled on the scoping call.
How is JSD paid, and which payments earn a commission?
JSD is paid a commission on what it collects, with no setup fee or monthly charge. The rate, the accounts in the program, and which payments count as collected are all agreed on the scoping call and written down before work starts, so there is no question later about what is commissionable.
Is outsourcing accounts receivable less expensive than hiring?
An in-house hire costs salary and benefits every month, plus the time to recruit and train. JSD is paid a commission on what it collects, so the cost follows results. Which one costs less depends on your volume, and we will tell you plainly if hiring makes more sense for your aging.
Do we have to train JSD's team?
JSD's collectors already work commercial accounts every day. What we learn from you on the scoping call is your payment terms and contracts, along with any customers who need special handling.
How does JSD get our receivables data, and can it work inside our accounting system?
It depends on how your team works. Some clients have given JSD remote access through Azure Virtual Desktop, using logins they issue and control, so we can view the aging, payment activity and account notes directly. Others send an aging report on a schedule, up to daily, so each balance stays current. Some also share logins to their customers' portals so JSD can pull documents directly. These are arrangements that have worked, not a fixed menu. If your setup is none of these, describe it and we will say what fits on the scoping call.
Will our customers know JSD is involved?
Yes. Calls and emails come from JSD's own phone number and email address, and the caller says they are with JSD, contacting the customer on your behalf about a specific invoice. The customer knows who is calling and why, which makes it easier for the right person to call back.
Can you work under our name and domain?
JSD's standard program uses JSD's own phone and email. If working under your name matters for a particular set of accounts, raise it on the scoping call and we will tell you whether it fits before anything starts.
What happens to accounts that still go unpaid?
With your approval, they move to placement for collection. The account history and notes go with them, so the work continues from where it stood. Legal action is a separate decision, and you approve court and filing costs before anything is filed.
Next Step
Talk through your aging with us
Thinking about whether to outsource your receivables? Tell us how many open invoices you carry and how your team follows up today. We will say whether it fits and how the commission would work.
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