Understanding the types and classifications of assets is essential to accurately interpreting a company’s financial health. One common area of confusion is around the classification of account receivable. Is accounts receivable a current asset, a tangible asset, or something else…
5 Strategies to Improve Accounts Receivable Management
Did you know that efficient management of accounts receivable (AR) is fundamental to a company’s financial stability and a steady flow of cash? It becomes more difficult to fund operating expenses and expansion plans when payments are delayed because of…
Understanding the “Accounts Receivable Turnover Ratio” for Your Company
The Accounts Receivable Turnover Ratio is a vital financial metric that offers a clear snapshot of a company’s efficiency in collecting payments from customers who purchase on credit. This ratio sheds light on the effectiveness of credit management practices, the…
The Importance of Credit Risk Management in Accounts Receivable
Have you ever wondered why some businesses always have a steady cash flow while others struggle? A big part of the answer lies in something called credit risk. Think of credit risk as the gamble that your customers will pay…
Essential KPIs for Measuring Accounts Receivable Performance
It is your accounts receivable (AR) staff that is responsible for fueling the fires of your business if cash is the gasoline that drives your company. Having a clear perspective of how the company is tracking its collections and where…