Remove Accounts Receivable (AR) Remove Bad Debt Remove Order to Cash
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Sales Commissions Impact the Collection Process

Your Virtual Credit Manager

Photo by Alex Radelich on Unsplash When small businesses add customers and increase sales, their company’s Accounts Receivable (AR) will grow. it just might help them pay you sooner!

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Misalignment Between Credit and Sales Spells Trouble

Your Virtual Credit Manager

In order for that to happen, everybody needs to be aligned in regard to sales and credit in general and the objectives of the order-to-cash process (O2C) in particular. Are there past due accounts you are trying to collect? The experts at Your Virtual Credit Manager can help you bring in the cash.

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Get Ready for a Wave of Commercial Bankruptcies

Your Virtual Credit Manager

Clearly, the level of Business Credit Risk is going to remain elevated as we move through 2024, bringing with it the potential for corresponding increases in bad debt and delinquency. The good news is that there are a number of actions you can take to reduce your loss exposure and shore up your accounts receivable (AR).

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Are You In Control of Your Receivables?

Your Virtual Credit Manager

(Photo by Jandira Sonnendeck on Unsplash ) In most cases, you therefore have to extend credit to your B2B customers, which entails the following risks: Not being paid anything Being paid an amount less than the full invoice value Not being paid on time, whether in full or in part These outcomes are known as credit risks.

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How Healthy Is Your Accounts Receivable?

Your Virtual Credit Manager

That certainly holds true for business processes, including the management of your Accounts Receivable (AR) and the part it plays in the order-to-cash process. If your AR is deteriorating, you better diagnose the problem as quickly as possible so you don’t incur cash flow problems and bad debt losses.

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Evidence It's Time to Adjust Your Collection Practices

Your Virtual Credit Manager

There are a myriad of issues that can affect collections. As you review your metrics, here are five signs that there may be a problem with your collection practices: DSO Is Rising: Days Sales Outstanding is the most common metric for measuring accounts receivable (AR) performance.

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Should You Outsource AR Management?

Your Virtual Credit Manager

So, how can a small business acquire high level functional expertise with its “Jack of all trades” workforce, especially in regard to managing the Accounts Receivable (AR) asset? Another approach is to look at each discreet AR activity to determine if it might be better handled by an external partner.

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