A/R Management
Ensuring the firm's investments in accounts
receivable is appropriate and contributes to
shareholder's wealth maximization is one of the goals
of Accounts Receivable Management. Handling
Accounts Receivable Management is becoming even
more sophisticated in the global and electronic age of
the 21st century as finance managers try to squeeze
the last peso of profit out of their strategies. Although
some sales are made for cash, today the vast majority
of sales are on credit. Sound credit and collection
policies will enable the finance manager to minimize
investment in working capital particularly on inventory
and receivables.