Accounts Receivable (AR) Management

Appropriately managing accounts receivable (AR) can have positive effects on a

company's bottom line. An accounts receivable aging report categorizes AR
invoices by the length of time they have been outstanding. For example, an AR
aging report may list all outstanding receivables less than 30 days, 30 to 60 days,
60 to 90 days, and 90+ days. Through a review of outstanding receivables,
managerial accountants can indicate to appropriate department managers if
certain customers are becoming credit risks. If a customer routinely pays late,
management may reconsider doing any future business on credit with that
customer.