Overview of the Accounts Receivable Process

The accounts receivable process involves managing and tracking the money owed to a business by its customers for goods or services provided on credit. It begins with issuing invoices to customers and ends with the collection of payment. Key steps include credit checks, invoice generation, sending statements, following up on overdue payments, and reconciling accounts. Efficient management of accounts receivable is crucial for maintaining healthy cash flow and minimizing bad debts.