7 Tips to Manage Collection of Accounts Receivable | Popular

Your company’s accounts receivables (A/R) collections process is essential to a variety of business functions. Cash intake, customer management, and long-term financial planning are all dependent on how well you’re able to collect on your outstanding invoices. With so much at stake, it’s common for companies to wonder how to improve accounts receivable collection without…

Automation is quickly becoming the new normal in 2021. Plans are in place for 70% of businesses to implement automated accounts receivable collections solutions. While much of that push can be attributed to the COVID-19 pandemic, automation isn’t a trend that will go away once the pandemic recedes. There are countless benefits to automating your…

The secret to accounts receivable management is knowing how to track and measure its performance. You can’t just look at the final balance sheet and guess which areas need improvement. You need to measure the right key performance indicators (KPIs). Key performance indicators are specific, measurable values that evaluate the success of a process. They…

A doubtful account refers to money owed to a business by its clients. But the catch is, it’s money that the business doesn’t expect to receive. (It’s “doubtful” you’ll collect.) The term also refers to an account that may become a bad debt in the future but hasn’t yet reached the point where it can…

A common pain point for many companies is a lack of cash flow. There are plenty of possible reasons for cash flow issues. Many of them are attributable to how collections and accounts receivable (A/R) processes are handled. Here are a few ways to improve accounts receivable collections that can boost your cash flow. 5…

Days deductions outstanding (DDO) is a measure of financial health that indicates how well a company can resolve deductions. This is a key metric in an organization’s accounts receivable (A/R) deduction management process. Like other A/R measures (such as metrics for days sales outstanding, DSO), it has big implications for overall profitability. How to Calculate…

Accounts receivables (A/R) are an ongoing process of improvement, and like all improvements, companies need metrics to monitor their progress. One key metric for measuring A/R efficiency is your accounts receivable turnover ratio. Let’s look at this indicator in more detail. What Is Accounts Receivable Turnover Ratio? Essentially, the accounts receivable turnover ratio tells you…

It’s projected the accounting software market will reach $11.8 billion by 2026. Over 50% of C-level accounting executives expect automated accounting systems will have the highest impact on their businesses over the coming decade. And when we look at all the different ways to improve accounts receivable collections through automation, it’s easy to see why…