Definition: Accounts Receivable (AR) is the proceeds or payment which the company will receive from its customers who have purchased its goods & services on credit. … Account Receivables (AR) are treated as current assets on the balance sheet.
It is imperative for any company to have petty cash and a steady cash flow available at any given time no matter the nature of business. . Contingencies can happen anytime.
“By failing to prepare, you are preparing to fail.”
― Benjamin Franklin
Due to restrained budget, small companies invariably make majority of their purchases on credit. By selling more on credit, small enterprises could have a competitive edge over companies that don’t sell on credit.
However the downside of this is the risk of not receiving the payments within the committed time frame. This increases the company’s need for extra monitoring.
The intention of the borrower may not be that of non-repayment but its possible that due to their internal rotation of funds there may be a crunch.
Constant follow ups and regular reminders can be an irritant as far as the borrower is concerned but for the lender it becomes necessary to have the wheels of the company well oiled.
Due to being short staffed or staff not proficient in pursuing aggressively it becomes necessary for companies to outsource this service of account receivable management.
Debt recovery services in Chennai is a professionally based feet on street team constantly scrutinizing and inquiring on the payments with periodical reminders and visits if necessary.
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