Remove Bad Debt Remove Deductions Remove Online Credit Application
article thumbnail

Accounts Receivable Analysis: Meaning, Objectives, Importance

Gaviti

How much bad debt does the company have, and how has this changed over time? Are we offering the right amount of credit to customers based on their creditworthiness? Consider these additional KPIs: Bad debt ratio: This measures the monetary value of receivables you believe you cannot collect.

article thumbnail

Resolve to Be More Proactive in 2024

Your Virtual Credit Manager

In contrast, profit driven enterprises often miss opportunities because they are too restrictive out of a fear of bad debt losses. A segmentation analysis will help you refine your credit policy guidelines and thereby improve the efficacy of your credit decisions.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Trending Sources

article thumbnail

AR Data Management, AR Automation, & Accelerating Cash Flow

Your Virtual Credit Manager

” This junk AR comes in a variety of forms, such as: Short payment/deductions Debit memos Unapplied credit memos Unapplied cash Late payment fees and other surcharges Early payment discounts taken but not deserved Clutter obscures the true amount a customer owes and causes confusion.

article thumbnail

The Importance of the Accounts Receivable Aging Report

Gaviti

It also helps provide documentation in the event that your company has bad debt that it is able to take as a tax deduction. Disputes and deductions. Credit management and monitoring. Send online credit applications to both existing customers and potential prospects.