How to manage company receivables?

How to setup credit action pan for credit department to maasure the performance for credit department

In such case company like to persue the client to adjust outstanding liability or vigorous persuation on going to minimize the outstanding level.
Should be alert not to exceed a certain level or the rate of increasing receivable.

Accounts Receivable (A/R) of a company is a very important current asset which has to be managed carefully.
This can be done through careful analysis of each and every account which has outstanding balance, such as the payment pattern of each customer / account and proactively taking measures so that the Days Sales Outstanding (DSO) is within the targeted levels.
In case of negative variations, steps such as informing the customers of the past due amount through telephone, e-mail or through personal visits if required and sending soft to tough warning letters as per the situation have to be done to collect the past due amount from the customers.
The accounts receivable officer at all times should be able to balance between customer service and collection techniques so as to maintain a good professional relationship with the customer, which is very important for the growth of the company.

The very word "Accounts Receivables" itself shows that there is uncertinity in receiving the committed money. Hence, the primary thing that is more important is that the account receivables should be at its minimal or endeavor to keep them at its minimal. The volume of account receivables in Balance Sheet shows as to which extent the company / the firm / the unit is moving and what type of risk the the company / the firm / the unit is facing. If the risk is a calculated risk and that too it is normal and minimal, it will be wel and good and the same is reverse, a second thought is very much necessary (viz. the thought to reduce them at its minimal). Persistant recovery strategy is necessary in case the accounts receivalbes are on the high side. As far as possible, reduce the accounts receivables in shortest time; else there is every chance they turn to bad debts.

A most important thing that is to be considered is it is very natural that there would some bad debts inherent with any business. However, a smart businessman will have a strategy is that the bad debts percentage is already factored in the proposed profit. ....... will be continued later.