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.