Accounts receivable refers to the money that a company is owed by its customers for goods or services that have been delivered but not yet paid for. The management of accounts receivable is an important aspect of a company's financial management because it can have a significant impact on the company's cash flow and overall financial performance.
Effective management of accounts receivable involves several steps:
- Establishing credit policies: The company should establish clear policies on credit terms, such as how long customers have to pay their invoices and what the late payment fees will be.
- Monitoring customer payments: The company should regularly review its accounts receivable to identify any overdue invoices and take action to collect payment.
- Offering incentives for prompt payment: The company may offer discounts to customers who pay their invoices early or on time.
- Implementing an invoicing system: The company should have a system in place for generating and sending invoices to customers in a timely manner.
- Utilizing collection agencies: If a customer is consistently late in paying their invoices, the company may choose to use a collection agency to try and recover the unpaid amount.
By effectively managing its accounts receivable, a company can improve its cash flow and increase its overall financial performance. On the other hand, poor management of accounts receivable can lead to cash flow issues and potentially harm the company's financial performance.
Qube Credit & Collection Management Added Value
PRI® CrediSoft is a proprietary receivables credit platform supporting credit management processes supported by Qube Servicing. The platform manages and integrates collection workflows and tasks:
- On a daily basis as wells as intraday PRI® CrediSoft manages, controls and monitors all collection tasks defined as part of credit management:
- Main workflow;
- Subflows such as Promise to pay, and Disputes;
- Receivables portfolio performance via Dashboard functionality;
- Administration, Debtor and Receivables information accessed via Agenda and/or Debtor section, and detailed information generated in the Reports section;
- Supports debtor communication as well as (internal) client communication by mail, multi languages, as part of the collection workflow tasks, incl. logging as part of tasks performed;
- Enables access to specific Debtor, including Receivables, workflows to third parties such as credit insurers, credit collection agencies and/or bailiffs providing when required;
- And supports Voice over IP.
PRI® CrediSoft has been developed based on experience by Qube Servicing with market offerings and with the objective to enhance user friendly and efficiency of the credit management application supporting the collection process.
Compared with the market the service and functionality offered by PRI® CrediSoft proofs to be excellent and evidenced by demo on request.
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