AR Management

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What does it mean ? What is AR Management ?

AR = Accounts Receivable = money that you have to receive from your customers.

According to Wikipedia the definition of accounts receivables ( AR ) is the following :

Accounts receivable is a legally enforceable claim for payment held by a business against its customer/clients for goods supplied and/or services rendered in execution of the customer’s order. These are generally in the form of invoices raised by a business and delivered to the customer for payment within an agreed time frame. Accounts receivable is shown in a balance sheet as an asset. It is one of a series of accounting transactions dealing with the billing of a customer for goods and services that the customer has ordered.

( source : https://en.wikipedia.org/wiki/Accounts_receivable )

AR Management is a very important topic for any business regardless of size. It is about the inflow of money , money that is very much needed for any business operations and for the business development.

AR Management TO DO’s

  • make sure that you have fulfilled all actions and that you are able to issue the agreed invoices to your customer
  • make sure that you have the right payment details on your invoice
  • make sure that you have set up enough payment methods to receive your money from your customers
  • set up a credit policy that is fit to your business needs and act based on the set policy
  • to start your AR Management you have to have some AR ageing analysis that you can act upon
  • check that your invoicing system is up to date and you have sent out all invoices
  • get in contact with your customer through collection letters, collection calls, etc.

The above mentioned steps are just the basic steps needed to have a basic receivables collection going in your company.

I know that sometimes this kind of collection takes a lot of time, this is also not a task for anybody . Make sure that you have set the right people to take care of this task.

As always, you have besides doing this on your own, the option to outsource this process.

The receivables management process is part to the services of TopCFO.

We can support your business in  setting up this process in your company and making sure that you get paid for your rendered services or delivered goods.

Ask us about this , we would be more than happy to provide more details and help you out.

Cash is King , therefore whoever has cash can dictate , TopCFO helps you to be the King.

 

 

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