Review Accounts Receivables Daily. Your receivables should be as good as cash if the employees are all doing their job properly. If there are problems with your company’s A/R, hence, the problem turns an asset into an expense. In layman terms, the problem lowers the company’s cash balance and reduces profits. If management does not pay close attention to the receivables, the result is more A/R write-offs. Review Accounts Receivable Daily.
Review Accounts Receivables Daily.
When A/R Collectors call to collect delinquent balances, they should also ask for payment of the current balances. I have witnessed many times the AR collectors calling customers to collect only the delinquent balances. Therefore, many times they are forgetting to ask for payment for the receivables that are about to become delinquent. All collectors should ask the customers for payment of the total receivable balance.
During each call, the collector should review with the customer any problem invoices. Problems may be caused by missing PO numbers, shortages, damages or returns. Consequently, resolving these problems before the invoice becomes due improves cash flow.
My definition of accounts receivables is: “Your cash in other companies’ checking accounts.” Collect your receivables and put the cash in your company’s checking account.
In addition to this article, Review Accounts Receivables Daily, please read some of my other articles about business:
My name is Robert Curry and I am an Author, CEO Coach, Keynote Speaker, and Turnaround Specialist. Over the past 20 years, I have worked with more than 70 companies taking their businesses from Loses to Profits.
Recently, I published two books about turnarounds: “From Red to Black – A Business Turnaround” and “The Turnaround.” Both books are true stories about turnarounds of real companies that I have turned around during my career. In both books, I have shared all my Profit Improvement Recommendations (“PIR’s”). PIR’s helped to grow sales, reduce expenses, improve cash flow, and most importantly, strengthen the management teams.
If the information in this article Review Accounts Receivables Daily helps you, your family or a business associate, please email me at email@example.com and share with me the story.
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