Improving AR turnover means accelerating the collection of receivables. Entrepreneurs can achieve this by:
Creditworthiness Checks: Conducting thorough credit checks before extending credit to new customers. Shorter Payment Terms: Setting shorter payment terms, such as net 30 days instead of net 60 days. Regular Monitoring: Regularly reviewing the AR aging report to identify and address overdue accounts promptly. Customer Communication: Maintaining open and proactive communication with customers about payment expectations and issues. Professional Collection Services: Outsourcing to professional collection agencies if internal efforts fail to recover overdue amounts.