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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.