Accounts Receivable Basics

Understand accounts receivable basics to benefit your company

Invest time to learn about accounts receivable (A/R) basics and the impact on your businesses cash flow. Accounts receivable invoices are created when sales are made based on commercial credit. An invoice is sent to the supplier with the expectation that payment will be received within a specific time frame.

There are a wide range of accounts receivable software products available to assist in the management of this key business function. There are also multiple options to assist in the collection of payment for services provided. Review the three items listed below for further details.

1. Investigate accounts receivable factoring.

2. Study accounts receivable.

3. Locate accounts receivable collectors.

Understand accounts receivable factoring

Write down the total value of outstanding accounts receivable in your companies financial statements. Review an accounts receivable aging report from your accounts receivable system. These values can be translated into cash flow through the use of an accounts receivable factoring firm.

Investigate accounts receivable courses to learn the basics

Look into accounts receivable management courses from your local college or business school. There are a wide range of certificate and diploma programs designed to support efficient management of accounts receivables. In addition to courses in accounts receivable basics, they also offer courses on the most popular accounts receivable software packages.
Virginia Tech. Study accounts receivable through an online bookkeeping course offered by the US Career Institute. UniversalClass has an affordable online accounts receivable management program that's worth checking out.

Get to know accounts receivable collections firms

One of the basic concepts in A/R is the process of using firms to collect on your unpaid debt so that your company doesn't have to deal with that. Contact accounts receivable companies who specialize in collections of unpaid invoices. These firms improve cash flow and charge a flat fee or a percentage of invoice value.

• A/R solutions ensure the overall financial health of the company. Large companies often dedicate one accounting staff member to accounts receivable calls and follow up to improve cash flow while maintaining positive business relationships with customers.

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