What Accounts Receivable Outsourcing to India Includes
| AR Task | What the Indian Team Does | Frequency |
|---|---|---|
| Invoice generation | Creates invoices in Xero from your job/delivery data, sends to customers | Daily or on job completion |
| Payment allocation | Matches bank receipts to invoices, allocates payments, clears debtor ledger | Daily |
| Bank receipt matching | Reconciles bank credits against outstanding invoices, resolves part payments | Daily |
| Reminder emails | 7-day and 21-day automated or manual reminders per your template | Per cycle |
| Phone follow-up | 30+ day accounts contacted by phone within agreed script | Weekly |
| Statement sending | Monthly debtor statements emailed to all accounts with outstanding balances | Monthly |
| Debtor ageing report | Current / 1–30 / 31–60 / 61–90 / 90+ day buckets, flagging at-risk accounts | Weekly |
| Credit hold management | Flags accounts over credit limit or over X days overdue for management review | Weekly |
| Disputed invoice management | Records disputes, tracks resolution, puts hold on follow-up during resolution | As required |
| Bad debt processing | Writes off confirmed bad debts in Xero with correct GST adjustment | As required |
| Monthly AR reconciliation | Total outstanding debtors reconciled to aged trial balance and Xero | Monthly |
The Debtor Follow-Up Cycle — How It Works
The single biggest cause of slow debtor days is inconsistent follow-up. Most Australian business owners follow up when they have time — which means big customers sometimes wait 60–90 days without a single contact. The Indian AR team follows up every account on a defined cycle:
- Invoice day — invoice sent to customer with payment terms clearly stated (e.g. 14 days, 30 days)
- Due date minus 2 days — courtesy reminder email sent to customer
- 7 days overdue — first follow-up email with copy of invoice
- 21 days overdue — second follow-up email, phone call for accounts over A$500
- 30 days overdue — formal statement and final reminder before escalation
- 45+ days overdue — escalation to business owner for decision: payment arrangement, disputed invoice, or collections referral
This cycle runs automatically for every account. Nothing falls through the cracks. The weekly ageing report shows where each debtor sits so you can see the AR position at a glance.
AR + AP Together — The Complete Outsourced Finance Function
Most businesses that outsource accounts receivable also outsource accounts payable — the two functions together give the Indian CA team a complete view of your cash position. The Indian team can then:
- Provide weekly cash flow status: what's coming in (AR due this week), what's going out (AP due this week), net cash movement
- Flag when upcoming AP payments cannot be covered by expected AR receipts — giving you time to chase a specific debtor or arrange a facility draw
- Prioritise supplier payment runs based on available cash and supplier priority
See our full accounts payable outsourcing guide for how AP works alongside AR.
GST and Bad Debt Credits
When a debtor cannot pay and a bad debt is written off, the GST component of the invoice can be claimed back as a GST credit on your BAS — this is a bad debt adjustment on Label 1B. The Indian CA team processes bad debt write-offs correctly in Xero, applying the adjustment transaction so the GST credit is captured on the next BAS. Many bookkeepers miss this — it results in over-reporting GST payable on debts that were never collected.
Written by Sharma Jyoti, CA (ICAI) — Founder, Sharma Jyoti and Co. We are an ICAI-registered Chartered Accountant firm providing outsourced bookkeeping and accounting services to Australian, US, UK and Canadian businesses. Learn more about our firm →
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