Your Virtual Credit Manager

JANUARY 2, 2024

Contacting customers to pay past due amounts (collecting) is an essential element of accounts receivable (AR) management. For most firms, late customer payments are a frequent occurrence and collecting them can be a difficult task. This post focuses on the aspect of collections that involves Credit Holds.

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Bad Debt Credit and Collections Accounts Receivable (AR) Credit Management 130

Emagia

JUNE 7, 2023

Accounts Receivable (AR) Days provides valuable insights into the efficiency of a company’s credit and collection processes and plays a significant role in assessing cash flow management. What is a Good Accounts Receivable Days? In such cases, business risk alienating potential customers.

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Accounts Receivable (AR) Credit and Collections Transactions 52

Your Virtual Credit Manager

MARCH 19, 2024

If all your customers paid promptly — by the time the invoice was due — you would not need to do any collection work. Collections is a reactive process. The amount of collection activity with which you are tasked is directly proportional to your customers’ payment habits.

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Bulk Transfer Credit and Collections Bankruptcy Third Party Collections 100

Your Virtual Credit Manager

MARCH 12, 2024

As a result, trade credit, where businesses extend financing to customers, is undergoing rapid advancements, but it also poses high risks, especially in assessing creditworthiness, dealing with economic fluctuations, and fraud. While these are excellent recommendations, they are a bit laden with consultant-speak.

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AR Transformation Credit and Collections Accounts Receivable (AR) Order to Cash 100

Your Virtual Credit Manager

JANUARY 23, 2024

Approving a customer for credit terms is merely the first step in an open credit relationship. Economic circumstances may cause you to tighten your credit policies and customer credit limits. Even more likely are changes to a customer’s business. Situations change, both for you and for your customer.

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Credit Application Bad Debt Bankruptcy Credit Scoring 130

Your Virtual Credit Manager

SEPTEMBER 26, 2023

Your accounts receivable (AR) and cash balances as of December 31, 2023, are very important numbers. Suppliers, lenders, and credit rating agencies place substantial importance on these numbers when assessing your liquidity and overall financial strength.

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Credit and Collections Accounts Receivable (AR) Deductions Collector 147

Your Virtual Credit Manager

DECEMBER 27, 2022

For example, there are firms burning through their cash reserves that may still be considered worthy of credit on their next order, but not the order that comes in three months from now. A customer can be paying you with no problems, but then their bank line of credit comes up for review and is drastically cut back by the bank.

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Credit Scoring Credit and Collections Accounts Receivable (AR) Credit Application 130

Your Virtual Credit Manager

DECEMBER 6, 2022

If your sales are consummated via payment at the point of sale, which may involve “pay with order” or “pay on delivery” protocols involving a credit card or an online e-payment product, managing Accounts Receivable (AR) will not be big issue for you. it just might help them pay you sooner!

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DSO Credit and Collections Bad Debt AR Aging 130

Your Virtual Credit Manager

MAY 28, 2024

Next comes billing, followed by collections cleaning up all the garbage left by everybody that has gone before. If you remember the Rocky and Bullwinkle cartoons, some seasons there was a parade during the closing credits. The collection role is a lot like that of the little janitor with the big mustache sweeping up behind the parade.

Accounts Receivable (AR) 100

Accounts Receivable (AR) Past Due Invoices Credit and Collections Collector 100

Your Virtual Credit Manager

SEPTEMBER 12, 2023

Effectively managing accounts receivable (AR) is essential for a company's financial well-being. Poor receivables performance affects cash flow, and it is no secret that cash flow problems are the leading cause of business failures. Credit evaluations, however, often take time. Offer ends 9/30/23.

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Credit and Collections Bad Debt Accounts Receivable (AR) Deductions 130

Your Virtual Credit Manager

SEPTEMBER 5, 2023

Starting in October, free subscribers will only receive the introductory section of our weekly articles. Plus, you get full access to our growing archive of over 100 articles! Lower AR Carrying Costs: These are simply the cost of financing your AR. These costs are usually small, but not always trivial.

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Bad Debt Credit and Collections Accounts Receivable (AR) Default 130

Your Virtual Credit Manager

JANUARY 9, 2024

Two weeks ago we recapped the three most read articles from 2023: identifying red flags, understanding why customers pay late, and the secrets of successful collectors. Then last week we looked at credit hold best practices. From a credit management perspective, these are largely reactive topics.

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Credit and Collections AR Aging Accounts Receivable (AR) Deductions 130

Your Virtual Credit Manager

DECEMBER 5, 2023

This misguided search for a singular understanding applies to many things, including collecting Accounts Receivable (AR). Optimal Collection results are achieved by utilizing different collection techniques with different types of customers. Keeping it simple is the best way to optimize your results.

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Credit and Collections Third Party Collections Accounts Receivable (AR) Credit Risk 130

Your Virtual Credit Manager

DECEMBER 19, 2023

If you are an executive at a small or mid-sized business, chances are you are in the process of putting together a budget for 2024, or have already done so. Maybe you have factored in an incremental improvement in DSO, but how much thought have you given to how you are going to meet that budgeted goal?

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DSO Third Party Collections Credit and Collections Deductions 130

Gaviti

FEBRUARY 2, 2025

In this article, we attempt to explain the connection between the operating cycle and A/R, identifying bottlenecks, and implementing strategies to improve efficiency, you can achieve faster cash flow and enhanced financial performance. DSO represents the average time taken to collect payments after a sale.

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DSO Credit and Collections Accounts Receivable (AR) Days Sales Outstanding 52

Your Virtual Credit Manager

AUGUST 11, 2024

(Photo by Kind and Curious on Unsplash ) With bankruptcy filings skyrocketing and this trend expected to continue, trade creditors should prepare for delinquencies to rise within their accounts receivable (AR) portfolios. Your Virtual Credit Manager has already covered this topic from several different perspective.

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Sub-Chapter V Bankruptcy Credit and Collections Chapter 11 100

Your Virtual Credit Manager

JULY 11, 2023

Accounts Receivable (AR) is among the three largest assets on most companies’ books — inventory along with plant and equipment are the other two. AR is also the primary source of cash to fund daily operations. For example, if collections are constant and sales are rising, DSO will increase.

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Best Possible DSO (BPDSO) DSO AR Metrics Credit and Collections 100

Emagia

AUGUST 1, 2023

Understanding the nature of accounts receivable (AR) and its classification is crucial to maintain accurate bookkeeping records. One doubt that always pops up regarding is if accounts receivable is a debit or credit. What is Accounts Receivables? What is the Accounts Receivable Process?

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Your Virtual Credit Manager

MAY 2, 2023

Growth is down, interest rates continue rising, small businesses are facing a credit crunch, commercial bankruptcies are skyrocketing and experts see an emerging threat: Washington Post: U.S. A critical part of this exercise involves identifying active and new customers posing high, or even just marginal, credit risks.

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Bankruptcy Credit and Collections Accounts Receivable (AR) Default 100

NorthOne

JUNE 4, 2023

This article will provide insights into effective invoice and payment tracking strategies that businesses can implement to maintain their financial stability. Accurate and timely invoicing and payment collection ensure that businesses have a healthy cash flow, enabling them to meet their financial obligations and invest in their growth.

Accounts Receivable (AR) 52

Accounts Receivable (AR) Credit and Collections Transactions Small Businesses 52

Emagia

JUNE 19, 2023

Traditionally, invoicing has printing and mailing physical invoices, but those are very costly. In this article, we will look at the purpose of invoicing and the benefits of e-invoicing and automation. Debit Invoice Debit invoices, unlike credit invoices, are issued by the customer when they have been underbilled.

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AR Automation Past Due Invoices Accounts Receivable (AR) Days Sales Outstanding 52

tillful

NOVEMBER 8, 2022

Accounts receivable (AR). Accounts receivable refers to money owed to a business by third parties like customers or clients. For example, if you provide a service and allow your client 60 days to pay, the amount they owe you will be recorded under your accounts receivables until it’s paid.

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Credit Reporting Agencies Deductions Credit Scoring Credit and Collections 52

Your Virtual Credit Manager

DECEMBER 24, 2024

Photo by CDC on Unsplash Credit & Collection results suffer greatly from lack of attention and expertise. Perhaps more than any other SMB function, Accounts Receivable (AR) Management gets put on a back burner because it is nobody’s prime responsibility.

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Credit and Collections Collector Bad Debt Accounts Receivable (AR) 130

Your Virtual Credit Manager

FEBRUARY 11, 2025

From a credit management perspective, there is considerable uncertainty about the future as 2025 evolves. The days of easy money are history, while market volatility has increased. Not surprisingly, business failures are on the upswing. In last week’s post , we talked about credit policy. According to J.D

Accounts Receivable (AR) 130

Accounts Receivable (AR) Credit and Collections Bankruptcy Credit Management 130

Emagia

DECEMBER 3, 2024

Introduction to Writing Off Accounts Receivable In the realm of financial accounting, managing accounts receivable (AR) is crucial for maintaining a company’s financial health. However, not all receivables are collectible, leading businesses to write off certain amounts.

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Accounts Receivable (AR) Allowance for Doubtful Accounts Bad Debt Credit and Collections 40

Emagia

FEBRUARY 14, 2025

In today’s fast-paced business environment, managing accounts receivable efficiently is crucial for maintaining healthy cash flow and ensuring financial stability. An Integrated Receivables Automation Solution offers a comprehensive approach to streamline and optimize the entire receivables process.

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Days Sales Outstanding DSO Credit and Collections Cash Applicator 40

Emagia

DECEMBER 30, 2024

Accounts receivable (AR) is a critical component of a company’s financial health, representing the outstanding invoices or money owed by customers for goods or services delivered but not yet paid for. Efficient management of accounts receivable ensures steady cash flow and minimizes the risk of bad debts.

Days Sales Outstanding 40

Days Sales Outstanding DSO Credit and Collections Bad Debt 40