When calculating the allowance for doubtful accounts, consider historical bad debt experience, economic conditions, and customer creditworthiness. Use statistical methods such as the percentage of credit sales or aging analysis to estimate potential uncollectible amounts. Regularly review and adjust the allowance based on changes in business conditions and credit risk profiles to ensure accuracy.
Reimagine Your Order-To-Cash with AI
Touchless Receivables. Frictionless Payments.
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Emagia is a leading provider of AI-powered Order-to-Cash (O2C) automation platform that modernizes finance operations for midsize to large global businesses. Many global businesses and shared service centers use Emagia’s Autonomous O2C to transform to digital world-class operations in credit, invoicing and payments, receivables, collections, deductions, cash application and cash forecasting. Emagia solutions improve their customers DSO, cash flow, credit risk, operational cost, compliance and profitability.
