If your company provides goods to the customers on credit and expects to be get paid in the future is called account receivable. In short, it the balance of money that company will get from its customers. Account Receivable is a current asset on the balance sheet. Thus it can be converted into cash shortly. With this introductory para hope you have got an understanding of what is accounts receivable.
Benefits of Accounts Receivable
1.) Account receivable improves your cash position.
2.) It helps in improving the customer communication.
3.) Improve customer service and satisfaction.
4.) Reduce administrative costs.
5.) It assists in minimizing credit risk.
In case you want to know more about what is an account receivable, keep on reading. The specific word receivable means that the payment is not being released. It means that the company have extended a credit line for its customers.
Now let’s understand what is accounts receivable management?
Accounts receivable management
It is the process of confirming that the customers pay their dues at a specific time. Along with this, it also prevents non-payment or overdue payment of the customer’s pending amounts. The management of accounts receivable not only reminds the customers and collect money timely but also recognize the reasons for the late payments.
Hope, what is meant by account receivable is cleared to you till now.
If you want to know more about what is account receivable, then dial the Toll- Free Support Phone Number 1-877-263-2742.
Reference Source https://www.nairaland.com/5858653/what-accounts-receivable-comprehensive-guide
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