accounts receivable

What are the Risks Associated with Accounts Receivable?

AR carries certain risks, such as:
Bad Debts: There is always a risk that some customers may default on their payments, leading to bad debts.
Liquidity Issues: Delayed payments can create liquidity issues, affecting the company’s ability to meet its financial obligations.
Operational Inefficiencies: Inefficient AR management can lead to operational inefficiencies and increased costs.

Frequently asked queries:

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