Account Receivable - Best Practice Objectives

Accounts Receivable

Objectives

Organisation

People

Processes

Controls

Measures

Information Systems



To ensure customer payments are
received efficiently and effectively for
goods/services delivered, within the
agreed terms and conditions



To manage credit risk efficiently without
creating unnecessary delays in the sales
cycle



To maintain a complete and accurate
statement of outstanding debtors



To provide complete forecast information
to assist the management of short-term
cash requirements



Centralised processing



Economies of scale



Customer focus



Establish credit
levels



Issue sales order



Issue invoice



Monitor credit



Collect cash



Procedures
manual



Authorisation



Validation/matchi
ng



Credit control



Cost per invoice



Credit notes
percentage



Cost per payment
received



Days debt
outstanding



Integrated with
sales system



Automatic matching



Electronic receipts



Customer relations



Legal framework
awareness



Credit management