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Segmenting your receivables can be based on any number of criteria: industry type, distribution channel, customer risk rating or score, credit limit, ARaging and so on. While these are all useful as a secondary segmentation, the place you want to start is with customer annual purchases from your firm.
There are terms you don’t know, concepts you’ve never heard of, and you’re being asked to provide documents and make decisions based on information you don’t totally understand. The options are seemingly endless, and there are so many pros and cons to each. Documents You’ll Need. Prove Your Business is Legitimate.
Historically, the processes within collections, cash application and credit management are highly manual. With collections, this could look like manually sorting and filtering through ARaging reports or searching for follow-ups in Outlook calendars and even sticky notes.
There are terms you don’t know and concepts you’ve never heard of. Plus, you might be asked to sign documents and make decisions based on information you don’t totally understand. The options are seemingly endless, and there are so many pros and cons to each. Documents to Prove Your Business Is Legitimate.
What Is an ARAging Report? As an assessment and diagnostic tool, it’s hard to overstate the importance of your company’s accounts receivable (A/R) aging report. ARaging reports provide concrete information that can be used to take action. An aging report also analyzes how your customers’ companies work.
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