Effective receivables management involves several key practices:
Credit Policies: Establishing clear credit policies helps determine which customers are eligible for credit and the terms of credit. Invoicing: Prompt and accurate invoicing ensures customers are billed correctly and on time. Follow-ups: Regular follow-ups and reminders are necessary to ensure timely payment from customers. Aging Reports: Analyzing aging reports helps identify overdue accounts and take appropriate action. Collections: Implementing a systematic collection process to recover overdue payments.