Control in the Accounts Receivable department is essential when managing the company’s cash flow, and many factors can influence and effect the accuracy to Received and Recorded money.
- Contract Terms with clients and contractors you do work for
- Exact Procedures
- Owner, Collector, Employee accuracy following those laid out procedures
- Work Method used for recording
- Customer Relationships You set
Contract Terms: the terms you have with various contractors and clients you work for, affect how and when they are required to pay you. If your company allows lines of credit – the terms of When and How effect Accounts Receivable. Extended or Ambiguous Terms are a loss of control of how you are paid.
Exact Procedures: Attention and Regard to Transparent, clear, stated procedures regarding Receiving and Recording Revenue.
Owner Operated or Employee Accuracy: Accuracy affects the control of company finances.
“Quality of Receivables”