Invoice discrepancies are more common—and more costly—than most companies
realize.
● Industry averages show that 5–15% of all sales result in invoice discrepancies.
● Less than 50% of these discrepancies are actively pursued.
● Of those pursued, only 10–20% are typically recovered.
RRG’s A/R Consulting and Recovery Services help turn those numbers around.
Through decades of experience and a proven strategic approach, we’ve consistently
helped our clients recover 20–40% of previously uncollected discrepancies—often
resulting in millions of dollars in improved cash flow.
● Short payments
● Returns and shortages
● Post audits
● Unearned cash discounts
● Unauthorized deductions
● And more
Most companies underestimate the revenue they’re losing. For example:
● Unapproved deductions can reduce sales by 3% or more.
● 10–25% of open items in accounts receivable are short payments.
● Companies that sell to major retailers face the most severe deduction challenges.
These issues persist largely because resolving them is time-consuming and
resource-intensive. As noted by the Credit Research Foundation:
“While credit and A/R managers are increasingly aware of the money tied up
in customer deductions, they are also aware of the time and effort needed to
resolve them. In many cases, the work has multiplied to a point where it is
disproportionate to the resources available to tackle the problem.”
Rather than tying up your internal staff to chase a fraction of total A/R, outsourcing to RRG
provides a scalable, cost-effective alternative. We are a reliable, results-driven partner with a
deep understanding of deduction resolution.
According to industry research, 15–40% of total deductions are ultimately written off. Let us help
you reverse that trend and reclaim the revenue you’ve rightfully earned.
Outsourcing allows a company to concentrate on its core business. It’s also a cost-effective way to audit write offs and to help recapture the lost profit in A/R that is ignored and missed.
Many companies now view their receivables as a major investment and manage them as an
investment portfolio. This is ideal for companies with restricted access to capital, and the receivables can be managed so that they make the greatest possible contribution to the company’s financial performance.
An outsourcing company is an excellent way to help a company manage their A/R. Outsourcing has been proven as a credit and accounts receivable resource for companies of all sizes. Most importantly, the business of A/R outsourcing is performance, not cost driven.
Prior to working with RRG, one major Grocery Manufacturing company had a deduction recoup rate of 5%. RRG managed to review their accounts and boosted that to 16% in just a few months.
That means prior to working with us, they were receiving $12.5 million for every $250 million in deductions.After, they were recapturing $40 million for every $250 million.
That’s an increase of $27.5 million for every $250 million in deductions- an improvement that went directly to their bottom line.