Best Practices For Account Receivable Management

Revenue from sales activities serves as one of the essential sources of a business working capital; therefore, the company is required to manage its accounts receivable arising from credit sales effectively.

Every organization requires adequate liquid resources to meet its day-to-day working capital requirement. Companies require cash resources to pay wages and salaries and settle immediate liabilities to ensure smooth and uninterrupted operations. Maintaining adequate cash resources is crucial in the short term to business and a necessity to safeguard the business' existence in the long term, as a profitable company may fail without the adequate cash flow to settle its liabilities as they become due.