LearningCat: Accounts Receivable Management
Recording Customer Payments
It is essential for Indian businesses to effectively manage customer payments under Accounts Payable (AP) and Accounts Receivable (AR). The primary goal is to monitor the debts owed by customers as well as those owed by the company to third parties. This impacts profitability, cash flow, and overall financial well-being. It is essential to understand […]
Days Sales Outstanding (DSO)
Days Sales Outstanding (DSO) is an important financial metric that shows how efficiently the company manages its accounts receivable. By predicting the average number of days any company takes for the collection of payments from the customer after sale, DSO delivers the signal for steady cash flow. Enhancing DSO is crucial for the prosperity and […]
Collection Effectiveness Index (CEI) in India: The Real Deal for Managing Your Receivables
Cash flow. You hear it everywhere, but in business, it’s what keeps the machine running. And when sales happen on credit—like they do in most Indian businesses—it’s all about making sure that money actually shows up. This is where Collection Effectiveness Index (CEI) steps in. You might’ve heard of DSO (Days Sales Outstanding), but trust […]
Top Priority KPI’s for Accounts Receivable
Managing accounts receivable is crucial for any business’s cash flow. Key performance indicators (KPIs) like Days Sales Outstanding (DSO), Accounts Receivable Turnover Ratio (ART), and Bad Debt to Sales Ratio give you the real picture of your collection game. By keeping tabs on these numbers, you can spot problems, cut down on errors, and boost […]
Mastering the Basics of Matching Invoices in Accounts Receivables
When it comes to accounting, matching invoices with payments is a task you can’t ignore. It’s a key part of managing accounts receivable (AR) and keeping cash flow on track. If you don’t handle this properly, things can quickly spiral out of control—unhappy customers, messed-up financial records, and big problems during audits. But once you […]
Why Regular Reconciliation in Accounts Receivable is a Must
Business can suffer if it does not reconcile the accounts regularly as well as properly. Regular reconciliation is not a task that just needs to be checked off from the to-do list; it is an essential requirement in accounts receivable management. Ignoring this will bring chaos into the books of business. This guide will break […]
Key Performance Indicators (KPIs) for Businesses in India
In the current dynamic business landscape, particularly in developing economies such as India, it is imperative to ascertain the level of success of a corporation. KPIs are quantitative measures of how successfully a company is accomplishing its primary objectives. These objectives may have to do with revenue, client happiness, productivity, or even worker performance. Indian […]
Accounts Receivable Management: Meaning, Importance, Objectives, and Best Practices
Accounts receivable management is considered an integral part of the business, irrespective of its size. This function provides the surety that the customer pays for the products or services that they received within the allocated time period. It directly affects the company’s cash flow, working capital, and profitability. What is Accounts Receivable Management? Money fuels […]
The Role of Revenue Management in Accounts Receivable
Management of finances plays an important part in the field of business. Inside, there are two key elements: first, revenue management, and second, account receivable (AR) management. If these elements are not handled with care, then the company will struggle to run cash flow smoothly, which will result in numerous problems for the business. What […]
Credit policy and Procedure
What is Credit Policy? Credit administration is the nucleus of the lending organization. They are used to know about the entire credit procedure and also make certain that the loans are given only to the minimal-risk customers. It also provides help to the banks in the case of a loan overdue to recover the amount […]
How can we determine a customer’s creditworthiness?
Lending credit to needy customers is one important factor in enhancing trade and business growth. Trade credit, or the agreement between the company and customer that deals in purchasing goods and services on the basis of the pay-later method, is normal in B2B businesses. It is a method that will improve the count of sales […]
Customer Relationship Management in India
In the competitive business environment of today, having a game-changing product is insufficient. Strong client connections are essential for survival, particularly in a dynamic market like India. Customer relationship management, or CRM, may help with that. In a market with as much diversity and speed as India’s, managing customer connections is essential. CRM supports customer […]
Everything You Need to Know About Collection Agencies in India
Debts that aren’t paid are a big problem for companies. Any company can have major money problems if they don’t pay back loans or bills that are past due. That’s where debt collectors come in. What do they do? To find the people who owe money and get it back as quickly as possible. We’ll […]
How to Deal with Discrepancies in Accounts Receivables
Managing accounts receivable may appear like a simple task: issue the invoice, get payment, and move on. However, things are rarely so easy in practice. Errors occur. Payments are made later than scheduled, invoices and payments don’t match. These are known as inconsistencies, and if you don’t take prompt action, they can negatively impact your […]
Invoice Accuracy: What It Is, How to Measure It, and Ways to Improve It
The foundation of a company’s cash flow is its invoices, but many people don’t understand how important accuracy is until it’s too late. If you make a mistake on an invoice, you may face late payments, unhappy clients, or even damage to your reputation. What precisely is invoice accuracy, though? How is it measured? Most […]