Good Account Receivable Management Practices

Business Cash Flow Online Samuel Bennett 4/13/2012

Companies and organization are increasingly emphasizing on the importance of good receivables management practices. An organization that has successfully developed and implemented a receivable management system is more likely going to make more profits in today's complex world of business. Good receivables management means that a company or organization has successfully developed a team of employees that is sufficiently trained and with good accounting and financial skills. This calls for the need of incorporating experts in the field of collections in the activities of businesses. A specialist in the field of receivables management field will give the best advice to his employer about the correct avenues to use in the debt collection process. Receivable management practice has been greatly been influenced by the level of technological advancement in business fields today. Automated systems have been developed to ease the process of account receivable management. Traditional collection agencies have either evolved to embrace modern technology or have been forcefully been driven out by the now modern collection agency companies. Before setting out t5he goals and objectives of a company and a firm, it is more important to develop policies and procedure to help in receivable management practices. Policy and procedure development involves developing a credit form to make it more abiding for debtors. A credit form spells the terms that compels a debtor to fulfill his obligations towards your company. A partnership with a modern collection agency will ensure a more efficient receivable management department in your organization. A modern collection agency will help you concentrate more on your profit maximization goal's rather than dedicating company resources to collection process. A debt recovery system customized to fit in your business will help automate your collection process for greater results. A good system keeps track of your debtors' accounts and call schedule through a process that is very cost effective. Early intervention is also initiated by the system increasing the rate as wee as the of debt recovery speed. Modern collection agencies apart from automating their recovery systems have also emphasized the need of a collection attorney if a debtor is more resistant.


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