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Tuesday, September 07, 2010 ..:: Information Center » The Business DoctorTM » Accounts Receivable (1) ::.. Register  Login
 Accounts Receivable Minimize

Part 1 of a 4 part series

Warning Signs:

  • Receivables exceed 50 days outstanding.
  • Days receivables outstanding increases significantly.
  • Significant decrease in sales/receivables.

Steps to Improve: CONTROL

  • Have a formal written receivables policy.
  • Compare days outstanding to industry standards and/or general business norm. If accounts receivable = 45-50 days outstanding, be there.
  • Compare bad debt ratio to industry standards and company's past history.
      

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