Know-It Global

JUNE 20, 2023

Credit control is a vital aspect of financial management for businesses. It involves managing credit sales and making informed credit decisions, ensuring timely payment from customers, and minimising bad debt. 3: Debt Recovery and Minimising Bad Debt 3.1

Bad Debt 19

Bad Debt Credit and Collections Debt Collections Credit Risk 19

Chaser

JANUARY 1, 2025

The accounts receivable turnover ratio is a financial ratio that measures how efficiently a company collects its accounts receivable. It is calculated by dividing net credit sales by average accounts receivable.

Credit Sales 95

Credit Sales Debt Collections 95

Emagia

MAY 16, 2023

The Formula for Average Collection Period Average Collection Period = 365Days * (Average Accounts Receivables / Net Credit Sales) Importance of Average Collection Period The average collection period sheds light on how effective debt collection is. What is a High Average Collection Period?

Accounts Receivable (AR) 52

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

Know-It Global

JULY 5, 2023

Effective credit control procedures, such as regular monitoring of outstanding balances and proactive debt recovery, ensure that any potential issues are addressed promptly, reducing the likelihood of significant losses. Consider using a debt collection agency if internal efforts are unsuccessful.

Bad Debt 52

Bad Debt Credit and Collections Debt Collections Credit Risk 52