Receivables are sales made on credit basis. "Receivables are asset accounts representing amount owned to the firm as a result of the sale of goods or services in the ordinary course of business. For example, the accounts receivable is the record of fact that a company has done some work for customer A and that customer A owes money to the company. Generally, the credit period is short ranging from a month or two to a year.
Ledger Logs provide services for manage your accounts receivables and provide you all reports. We can set credit terms and monitoring account receivables for your business. As soon as a customer is given credit, the credit terms of the company should be explained to them. For instance, the normal credit period granted and any discount for prompt payment, or interest charged on late payment, should be explicitly detailed to the customer. Very often, the credit terms a company adopts are the terms that are most common in its trade.
Before a company grants credit to a customer it should ensure, as far as possible, that the customer is worthy of that credit and that bad debts will not result. Checks should continue to be carried out on existing customers as a company would like to have early warning of any problems which may be developing. This is especially true for key customers of the company.
Once the decision has been taken to grant credit, then suitable credit terms must be set and the receivables that arise must be monitored efficiently if the costs of giving credit are to be kept under control.
A key area of the management of accounts receivable is the final collection of cash from customers. Any company must have a rigorous system to ensure that all customers pay in a timely fashion as, without this, the level of receivables and the cost of financing these receivables will inevitably rise, as will the risk and cost of bad debts.
We manage accounts receivable management for all types of Buisness across the globe. Here are some benefits to handle your receivable accounts.
