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Accounts Receivable &

Accounts Payable Management

Background

Account Receivables Management refers to the set of policies, procedures, and practices employed by a company with respect to managing sales offered on credit and the recoverability of those credits as per agreed terms and within time frames. It encompasses the evaluation of client credit worthiness and risk, establishing sales terms and credit policies, and designing an appropriate receivables collection process.

 

Accounts receivables are represented on the face of the balance sheet of a company, and are considered a short-term asset. They are the results of sales-generation and thus must be managed to ensure they are eventually translated into cash-flows.

 

Cash is the backbone of any business. A company that fails to efficiently convert its receivables into cash can find itself in a poor liquidity position, crippling its working capital and facing unpleasant operational difficulties.

The Challenge

Challenges faced by business in managing accounts receivable and cash inflows may among others;

 

  1. Lack of policies and procedures of granting credits

  2. Delays in invoicing

  3. Lose control of invoices such as no serial numbers of no follow up based on serial numbers

  4. Less or no coordination between sales and accounting teams

  5. No or wrong reconciliations between banks and receivables

  6. Lost opportunities in case of delays in recovery of cash from debtors

  7. Possibility of not meeting payment deadlines due to non-recoverability of cash

  8. Unpredictable cash flows projections

Solution by ABL

ABL offers its services to manage end to end process of invoicing and collections. At ABL, we understand the value of Cash in business. By managing your cash flow requirements and enabling you to pay your liabilities on time, ABL helps you to create and maintain your solid position in the market competition. Our services include;

 

  • Agreeing with you about the terms of credits granted

  • Setting up cash cycles

  • Projecting expected cash receipts and payments

  • Automated Invoicing based on sales of goods or rendering of services

  • Follow up with creditors for unpaid invoices and missed deadlines

  • Reconciliations with debtors balances and funds received

  • Reducing debtors cycle and increasing creditors cycle

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