ACCOUNTS RECEIVALBE
We are Experienced in Providing Accounting Services over 18 years, our work is not only restricted to “Classic Book Keeping”, but also, we are involved in providing:
Accounts Receivable – In this Competitive world, it is important to have a proper track over the Cash receipts and payments to/by the Vendors and Customers, We take Onus on all these activities Independently and ensure that the Business Owners have a smooth business Working Capital, We are committed to comply/Suggest the Owners on Compliances with the given Deadlines or Timelines towards the Payments for accounts payable and we Follow-up on very regular intervals for Accounts receivable Professionally .
Accounts Receivable (AR) represents the credit sales of a business, which have not yet been collected from its customers.
Companies allow their clients to pay for goods and services over a reasonable extended period of time, provided that the terms have been agreed upon. For certain transactions, a customer may receive a small discount for paying the amount due to the company early.
The average AR days measure is an important part of forecasting changes in non-cash working capital in financial modeling.
Some businesses allow selling on credit to make the payment process easier. Take, for example, a phone provider. The provider may find it hard to collect payment perpetually every time someone makes a call. Instead, it will bill periodically at the end of the month for the total amount of service used by the customer. Until the monthly invoice has been paid, the amount will be recorded in accounts receivable.
Allowing purchases on credit also encourages more sales. Customers are more likely to buy items if they can pay for them at a later date.
For someone working in FP&A, equity research, or investment banking, it’s important to understand the cash conversion cycle – the amount of time it takes a company to convert its inventory into sales and then cash – as it provides important information on the company’s cash flow.