Account Receivables relate to outstanding invoices or money that has not yet been paid to your customers. Until they are paid, such invoices or money will be considered accounts. Also known as bill receivables. For your business to run smoothly, you need cash all the time and ensuring that bills are paid on time is essential for effective cash flow management.
In principle, the entire process of defining credit policy, setting payment terms, sending payment requests and timely collection of outstanding payments can be defined as receivables management.
Objectives of receivable management –
- Monitor and improve cash flow
- Reduces losses incurred due to bad debts
- Avoids Invoice Dispute
- Boost Up Sales Volume
- Improve Customer Satisfaction