Four Cornerstones of Your Accounts Receivable Procedure

The four cornerstones of an effective accounts receivable procedure typically include accurate invoicing, diligent follow-up on overdue payments, regular reconciliation of accounts, and proactive credit management. Accurate invoicing ensures clarity and transparency in transactions, reducing disputes and delays in payment. Diligent follow-up helps maintain positive cash flow by promptly addressing any overdue invoices. Regular reconciliation of accounts ensures accuracy in financial records and identifies any discrepancies or potential issues early on. Finally, proactive credit management involves assessing customer creditworthiness and establishing clear credit terms to minimize the risk of bad debts.