How Important are Your
Accounts Receivable to You?

The accounts receivable is one of the largest assets for any business. It is crucial that it is healthy and current.

 

When we say healthy we mean good sales = good receivables. Check your potential client’s credit. Can they afford to pay for your product or services? Let them prove that they are credit worthy.

 

When we say current we mean most of your receivables are in the current column, 70% to 80% or better.

Collecting your receivables is vital to the survival of your business. Once an invoice ages (the day after your due date) you should be contacting your customer for payment, whether it is by telephone or email. Always contact your customers when they exceed your payment terms, don’t wait until they become 30, 60 days past due.