Accounts Receivable Analysis

This essay focuses on Accounts Receivable Analysis.. One measure of the efficiency of the collection process is the accounts receivable turnover ratio:

Accounts Receivable Analysis

The analysis of accounts receivable is an important component in the management of working capital. A company must be willing to extend credit terms that are liberal enough to attract and maintain customers, but at the same time, management must continually monitor the accounts to ensure collection on a timely basis. One measure of the efficiency of the collection process is the accounts receivable turnover ratio:

A manager needs to understand a few simple ideas to employ the five basic operations. These concepts are essential to ensure their team comes together to reach the business’ goals:

Control: Employees of an organization need to understand the goals that they are aiming for as well as the measurement that will be used to determine whether they have been successful. Different staff members in a company have different roles that entail separate levels of responsibility. A manager must have control over what the members do, how they do it and how to measure their progress. Control over these factors helps a manager reach success.
Planning: The best managers know that planning is critical before the implementation of any strategy, but it is also an ongoing activity. Planning does not end when implementation begins. Rather, management needs to be prepare to answer the questions of who, what, when and where a team is working to implement the organization’s mission. Planning should include selecting objectives as well as implementing them.