Accounts receivable management is the process of ensuring that a company's outstanding invoices are collected in a timely manner. It involves the administration and control of the amounts due from customers for goods and services provided on credit. Effective accounts receivable management aims to maximize cash flow, minimize bad debts, and maintain good customer relationships. Key activities include:

  1. Invoicing: Ensuring invoices are accurate and sent promptly to customers.
  2. Credit Policies: Establishing clear credit policies and terms to minimize the risk of non-payment.
  3. Collections: Implementing strategies to follow up on overdue payments and reduce days sales outstanding (DSO).
  4. Customer Communication: Maintaining regular communication with customers regarding their accounts.
  5. Monitoring: Regularly reviewing accounts receivable aging reports to identify and address potential issues.
  6. Dispute Resolution: Addressing and resolving any billing disputes or discrepancies promptly.

Overall, effective accounts receivable management is crucial for maintaining the liquidity and financial health of a business.