Nine Ways to Improve Your Accounts Receivable Turnover
Accounts receivable turnover measures the speed with which the company turns its debtors into cash. The higher the ratio, the more the availability of money with the company. It allows businesses to reduce their bad debts and improve the company's financial health. On the other hand, a low ratio signifies poor credit control policies, haphazard customer collection policies, etc. If you wish to improve this ratio, try to practice the following points: Maintain strong relations with clients: Keeping your customers happy is the ultimate goal for every business. Checking in with them from time to time and doing other small gestures like phones or e-mails help in building strong relations and collecting timely payments from them. Send invoices on time: If you send invoices to your customers a month after selling them the goods, it will make them insensitive and delay accounts receivable . Therefore, you need to be quick in creating...