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Money owed to a company by a customer
for products and services provided on credit is called accounts receivable.
These funds are treated as a current asset on a balance sheet. The importance
of account receivables management can't be underrated. Accounts
receivable outsourcing might be your answer if you are finding it hard
to find the time to do this important work yourself or if you don't have in-house account
receivable services. This web page will provide you with advice and information on how to manage your account receivables.
Accounts receivable represent the sales that your company has
made that have not yet been collected as cash. When you sell your product
or service in exchange for a customer's promise to pay, you have extended
credit. If this is how your company works, accounts receivable will
be a very important source of cash flow. Unpaid accounts receivable funds could
leave your business without the necessary cash flow to pay your operating
expenses.
The following analysis tools can be used to help
determine the effect your business's accounts receivable is having on your
cash flow:
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