How to Effectively Manage Accounts Receivable and Accounts Payable

Efficient management of Accounts Receivable involves setting clear credit policies, promptly invoicing customers, and following up on overdue payments to ensure steady cash flow and minimize bad debt. On the other hand, managing Accounts Payable effectively includes negotiating favorable terms with suppliers, optimizing payment schedules to maximize cash on hand, and utilizing automated systems for accurate tracking and timely payments, fostering strong supplier relationships and maintaining liquidity for operational needs. Balancing these strategies ensures financial stability and supports sustainable business growth.