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Accounts Receivables Management

The receivables function plays a vital role in preserving cash for your business. With margins lower than usual, many customers and clients look for more favorable terms through negotiation or often simply choose to pay later than when times are good. We generally regard the receivable process beginning once an invoice is sent to the customer and continues as staff notifies customers of payment terms and follows up to ensure timely payment. Managing receivables and growing top line revenue often stand in conflict with each other. Many of us feel the pressure to grow revenue. We may be looking to grow revenue outside of our target markets by working with customers who do not meet traditional credit worthiness criteria. It is of the utmost importance to manage the receivables risk on the front end of customer acceptance. When putting together a quote or contract with a new prospective client that is outside of your previous target range, include someone from your accounting or receivables department so that they may run credit checks and prepare their processes to handle a new level of client. Tell us about how your receivables results our in today’s economy. Give any examples of how you manage the receivables risk from new customers.

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