Mastering Accounts Receivable: The Key to Cash Flow and Business Success
Understanding Accounts Receivable (AR) – The Lifeline of Business Cash Flow
Accounts Receivable (AR) is a critical component of business cash flow, representing the money owed by clients for goods or services delivered on credit. It functions as a short-term asset and requires careful management to ensure liquidity, foster customer trust, and maintain financial health. The AR cycle spans from sales agreements to invoicing, payment collection, and follow-up, with challenges including late payments, bad debts, and administrative burdens.… Read more