3 Accounts Receivable Realities

Written by Gideon Williams | Thu, Feb 15, 2018 @ 05:24 PM |

Inefficient Accounts Receivable given the cost of capital, increases payment-processing fees, increases Days Sales Outstanding (DSO) and the potential of bad debt. Bad debt is the final straw of a painful customer transaction meaning; your company will never collect that revenue. This factor alone requires your attention to Accounts Receivable management, yet accounts receivables often are not prioritized as a revenue driver because the sale has been booked.  In reality to complete the sale cycle, a company must collect the money.

At a Macro level - leaving revenue on the table is painful, but not nearly as painful as funding a customer’s purchase with no return thus trapping receivables on the balance sheet. Lowering the days to collect the cash thereby improving working capital is a catalyst to improved operations.

A solution to increase liquidity and expand flexibility to invest in growth or product development, decrease bad debt and maximize shareholder returns is found by using an Account Receivable Automation cloud-based platform.

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