Receivables Management

Receivables management involves overseeing and controlling the money a business is owed by its customers for sales made on credit. It ensures timely collection of these outstanding amounts to maintain healthy cash flow, reduce bad debts, and improve financial stability. Effective receivables management includes monitoring due dates, invoicing promptly, assessing customer creditworthiness, and following up on overdue payments. Proper management helps a business operate smoothly, meet its financial obligations, and support growth by maintaining good relationships with customers while ensuring the company receives its revenue efficiently.