Accounts Receivable (AR), Credit Management and Transactions

Sales Commissions Impact the Collection Process

Your Virtual Credit Manager

JANUARY 17, 2023

Photo by Alex Radelich on Unsplash When small businesses add customers and increase sales, their company’s Accounts Receivable (AR) will grow. Readers of Your Virtual Credit Manager now have access to sharply discounted business credit reports from D&B, Experian, or Equifax through our partner Accredit.

Credit and Collections

Credit and Collections Accounts Receivable (AR) Days Sales Outstanding Past Due Invoices

Misalignment Between Credit and Sales Spells Trouble

Your Virtual Credit Manager

FEBRUARY 27, 2024

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.

Accounts Receivable (AR)

Accounts Receivable (AR) Days Sales Outstanding Bad Debt Credit and Collections

Is Your O2C Process Optimized for Superior AR Performance?

Your Virtual Credit Manager

SEPTEMBER 10, 2024

Specifically, Credit and Collections is responsible for approving new customers for credit terms and managing orders at the beginning of the O2C cycle, while also monitoring risks within the Accounts Receivable (AR) portfolio and collecting overdue payments, both of which are post-sale activities.

Credit and Collections

Credit and Collections DSO Deductions Accounts Receivable (AR)

Webinars

Outsourcing Vs. In-House: The Ultimate Battle For Better Collections

MORE WEBINARS

How Do You Keep Track of Accounts Receivable?

Emagia

FEBRUARY 21, 2025

Managing accounts receivable (AR) is crucial for maintaining a healthy cash flow and ensuring the financial stability of a business. Effective tracking of AR involves implementing clear processes, utilizing appropriate tools, and regularly monitoring key performance indicators (KPIs).

Days Sales Outstanding

Days Sales Outstanding DSO Bad Debt Credit and Collections

Position Your AR to Enhance Working Capital

Your Virtual Credit Manager

OCTOBER 2, 2024

Accounts Receivable (AR) reflect a promise of payment at a future date. Though a paper asset, AR competes with Property, Plant and Equipment as well as Inventory for being the largest line item on a company’s balance sheet. Your Virtual Credit Manager is a reader-supported publication.

Past Due Invoices

Past Due Invoices Credit and Collections Deductions Accounts Receivable (AR)

Are Early Payment Discounts a Good Idea in Today’s Economy?

Your Virtual Credit Manager

FEBRUARY 28, 2023

Your Virtual Credit Manager (YVCM) previously published an article discussing the pros and cons of Prompt Payment Discounts. However, at this point in time there are other factors in play that favor the use of discounts to encourage earlier payment by your customers. This is a subject that has valid arguments for and against.

Bad Debt

Bad Debt Accounts Receivable (AR) Credit Risk Bankruptcy

Your Work Isn't Finished Even Though the Customer Has Paid

Your Virtual Credit Manager

OCTOBER 25, 2022

The result of timely and accurate Remittance Processing is an accurate Accounts Receivable (AR) Ledger, which provides the current status of every customer’s balance owed to you. Transaction completed and closed. Just click on this link to open an account and start getting the commercial credit Intel you need.

Credit and Collections

Credit and Collections Accounts Receivable (AR) Cash Applicator Deductions

Supercharge Your Collections

Your Virtual Credit Manager

SEPTEMBER 17, 2024

They understood the dynamics that affected their customers and marketplace, as well as the credit controls needed to keep credit risk in check in this environment. They also kept very good records on their customers and their purchases, so there were no issues with transactional visibility.

Credit and Collections

Credit and Collections Accounts Receivable (AR) Bad Debt Credit Risk

Do You Know Which Customers Are Likely to Pay Late?

Your Virtual Credit Manager

JULY 23, 2024

In every accounts receivable (AR) portfolio there are customers that almost always pay on time, other customers that pay within a reasonable proximity of the due date, and those that pay consistently slow. A similar option involves bringing a third-party finance company into the transaction.

Credit and Collections

Credit and Collections Accounts Receivable (AR) Shared Service Center Small Businesses

Manual Billing and Collections Are Draining Your Profits

Your Virtual Credit Manager

FEBRUARY 7, 2023

Such a process also brings more certainty to the accounts receivable (AR) asset. By securing the payment mechanism that will be used during the customer onboarding process, payments are embedded in the transaction, eliminating most late payments.

AR Automation

AR Automation Accounts Receivable (AR) Credit and Collections Bad Debt

Four Goals Guaranteed to Improve Cash Flow

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?

DSO

DSO Third Party Collections Credit and Collections Deductions

Business Customer Personas: A Collectors Guide

Your Virtual Credit Manager

JUNE 27, 2023

No two are alike, but they do tend to fall into some common groupings. Identifying the groupings within your customer accounts receivable (AR) portfolio enables you to deal with them all more effectively and efficiently. Photo by Keren Fedida on Unsplash Each business customer presents a unique set of circumstances.

Collector

Collector Credit and Collections High-Risk Accounts Accounts Receivable (AR)

Are Your Profits Going Up in Smoke?

Your Virtual Credit Manager

SEPTEMBER 13, 2022

They occur because a customer does not receive your product or service as ordered, or feels the invoice is incorrect. Should you confirm that the customer is indeed correct, the deduction is removed from the Accounts Receivable (AR) ledger via a credit memo.

Deductions

Deductions Credit and Collections DSO Accounts Receivable (AR)

The Imperative for Modernizing Trade Credit

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. Are there past due accounts you are trying to collect? They are transformational.

AR Transformation

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

How to Automate Accounts Receivable?

Emagia

FEBRUARY 20, 2025

Automating accounts receivable (AR) is a strategic move for businesses aiming to enhance cash flow, reduce manual workloads, and improve overall financial efficiency. This reduces the time spent on manual reconciliation and ensures that financial records are up-to-date.

AR Automation

AR Automation Credit and Collections Cash Applicator DSO

How Much Credit Should You Extend?

Your Virtual Credit Manager

AUGUST 6, 2024

The questions you must answer: How much open credit should I extend to a customer to maintain risk within acceptable levels? And when the risk does not warrant open credit terms ; How can we structure the transaction to ensure a profitable sale? Too often, extending credit is viewed as a yes or no function.

Bad Debt

Bad Debt Credit and Collections Accounts Receivable (AR) Credit Risk

There's Nothing Good about Extended Payment Terms

Your Virtual Credit Manager

APRIL 30, 2024

Also, once granted, extended payment terms are very difficult to rescind. If other accounts learn of your granting extended payment terms to one customer, it is likely they will demand the same, further increasing your investment in Accounts Receivable (AR) and straining your cash flow.

Credit and Collections

Credit and Collections Accounts Receivable (AR) Credit Risk Bankruptcy

Do Your Customers Deserve Credit?

Your Virtual Credit Manager

DECEMBER 27, 2022

Collateral: Collateral can be used to secure any type of credit offering. Collateral can be a physical asset, such as real estate, equipment, and inventory, or it can be a financial asset, such as stocks, bonds, and accounts receivable (AR). Credit grantors will often consider other factors as well.

Credit Scoring

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

Using Collateral to Make the Sale

Your Virtual Credit Manager

MAY 2, 2023

Epiq Bankruptcy: Bankruptcy Filings Increase Across All Chapters in March; Commercial Filings Up 79 Percent Year-over-year If you are extending credit to other businesses on open terms, reassessing your company credit policies as well as the latent risks that may affect accounts receivable (AR) performance and cash flow should be a top priority.

Bankruptcy

Bankruptcy Credit and Collections Accounts Receivable (AR) Default

What Triggers Your Collection Efforts?

Your Virtual Credit Manager

MARCH 19, 2024

Whether you have automated the collection process or not, mapping out collection strategies for the different types of customers in your accounts receivable (AR) portfolio is an accepted best practice. Are there past-due accounts you are trying to collect?

Bulk Transfer

Bulk Transfer Credit and Collections Bankruptcy Third Party Collections

It's Time to Give Your AR Ledger a Spring Cleaning

Your Virtual Credit Manager

APRIL 4, 2023

With a growing number of experts predicting a recession to hit later this year, and inflation and interest rates remaining at elevated levels, squeezing every dollar out of your investment in Accounts Receivable (AR) is more important than ever. They instead are non-performing assets that take time and money to recover.

Past Due Invoices

Past Due Invoices Credit and Collections Deductions Accounts Receivable (AR)

Up Your Cash Flow!

Your Virtual Credit Manager

NOVEMBER 5, 2024

A client, who rented heavy equipment to manufacturers and construction firms across a multi-state market area, was saddled with an accounts receivable (AR) growing faster than revenue. Three staff members handled both customer service and collection duties, while the Controller managed credit.

Accounts Receivable (AR)

Accounts Receivable (AR) Credit and Collections Credit Management Default

The Case for Electronic Invoice Presentment and Payment

Your Virtual Credit Manager

MARCH 11, 2025

Businesses have been digitizing ever since the introduction of accounting software in the 1960s. Your Virtual Credit Manager is a reader-supported publication. To receive new posts and support my work, please subscribe for just $5 per month ($49 yearly). Do you need help improving cash flow?

Days Sales Outstanding

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

Are Cracks in Your Order-to-Cash Process Hurting Your Company?

Your Virtual Credit Manager

JANUARY 21, 2025

Broadly defined, the credit’s contributions involve approving new customers for open terms and new orders at the front end of the O2C cycle. Photo by Ries Bosch on Unsplash ) There is a complementary relationship between credit and collections and the other O2C functions. Do you need help improving cash flow?

Order to Cash

Order to Cash Credit and Collections Bad Debt Accounts Receivable (AR)

The Case for Outsourcing Collections

Your Virtual Credit Manager

DECEMBER 24, 2024

A key difference (besides volume of transactions) is the lack of labor specialization. Photo by CDC on Unsplash Credit & Collection results suffer greatly from lack of attention and expertise. The only time AR comes to the forefront is when there is economic turmoil and an increased risk of bad debt losses.

Credit and Collections

Credit and Collections Collector Bad Debt Accounts Receivable (AR)

Integrated Receivables Automation Solution: Transforming Accounts Receivable Management

Emagia

FEBRUARY 14, 2025

Understanding Integrated Receivables Automation Solutions An Integrated Receivables Automation Solution is a technology-driven platform that consolidates various accounts receivable (AR) processes into a unified system. Determining automation requirements based on transaction volume and complexity.

Days Sales Outstanding

Days Sales Outstanding DSO Credit and Collections Cash Applicator

Credit Management Source

Sales Commissions Impact the Collection Process

Misalignment Between Credit and Sales Spells Trouble

Webinars

Trending Sources

Is Your O2C Process Optimized for Superior AR Performance?

Webinars

How Do You Keep Track of Accounts Receivable?

Position Your AR to Enhance Working Capital

Are Early Payment Discounts a Good Idea in Today’s Economy?

Your Work Isn't Finished Even Though the Customer Has Paid

Supercharge Your Collections

Do You Know Which Customers Are Likely to Pay Late?

Manual Billing and Collections Are Draining Your Profits

Four Goals Guaranteed to Improve Cash Flow

Business Customer Personas: A Collectors Guide

Are Your Profits Going Up in Smoke?

The Imperative for Modernizing Trade Credit

How to Automate Accounts Receivable?

How Much Credit Should You Extend?

There's Nothing Good about Extended Payment Terms

Do Your Customers Deserve Credit?

Using Collateral to Make the Sale

What Triggers Your Collection Efforts?

It's Time to Give Your AR Ledger a Spring Cleaning

Up Your Cash Flow!

The Case for Electronic Invoice Presentment and Payment

Are Cracks in Your Order-to-Cash Process Hurting Your Company?

The Case for Outsourcing Collections

Integrated Receivables Automation Solution: Transforming Accounts Receivable Management

Stay Connected