Accounts receivable management

Accounts receivable management covers the entire process, processing and handling of your company's unpaid invoices, other outstanding bal ances and debtors in general.

Debtor management is all the many actions involved in managing debtors; sending invoices, following up on payments, sending reminders, sending bank statements, handing over to debt collectors, following up on debt collection, etc.

Why do you need accounts receivable management?

There are many reasons why a business should have effective accounts receivable management. Accounts receivable management is the tools and resources a business uses to ensure timely receipt of payments. Without effective accounts receivable management, a business runs the risk of not getting its unpaid invoices paid on time - or not getting paid at all.

Who is responsible for debtor management?

In a company, the bookkeeping department is responsible for managing accounts receivable and thus handling payments from debtors. In larger bookkeeping departments, the tasks are often divided, with one or more bookkeepers having primary responsibility for creditors, while others have primary responsibility for debtors. This is also known as accounts receivable accounting.

In this case, an accounts receivable accountant will be responsible for the primary accounts receivable management.

What does accounts receivable management include?

Accounts receivable management basically includes all actions related to payments and non-payments. It is the job of the accounts receivable clerk to send and follow up on payments and, if payments are not received, to take actions in accordance with established procedures or policies or actions that are relevant in the specific situation.

Traditional includes accounts receivable management:

• Send out invoices
• Posting of deposits
• Send out bank statements
• Sending out reminder letters
• Send out debt collection alerts
• Possible dialog with sellers regarding missing payments
• Internal collection process
• Transferring cases to a debt collection company
• Follow-up on debt collection cases at the debt collection agency

Do you need help with accounts receivable management?

At Collectia, we help companies with all or part of their debtor management on a daily basis. We can assist with everything from monitoring payments to the full collection process. Contact us today if you would like to talk about how we can help you with your debtors.