Taking Control of your Accounts Receivables

Particularly in tough economic times, it’s more important than ever to keep control your accounts receivable lest they start to control you. As such, it’s important to always have in place clear credit and commercial collection policies in order to keep accounts receivables from getting out of hand. Look at your A/R listings to review your customers, their credit limits, payment terms, what their credit history is like and when’s the last time their credit limits were reviewed. With that information, credit and financial executives are in a better position to decide who to extend credit to and how much. Also, to better gauge risk, always look at a debtors’ bank and credit references, employee information and financial data. Also look at a firm’s history, who its customers are, what the competition is and how the firm is poised to face current economic conditions, especially in these times of dampened business credit markets.