A business is not entirely about producing sales which are usually on credit. It is also a matter of considering the ability of clients to settle their obligations that are better known to be as accounts receivables. While this is the normal scheme that most groups resort to, it is also a risky one at that. The ability to properly evaluate the credibility of interested potential partners is something a business entity would have to gamble on if it is to effectively cover and saturate the area of their choosing.
Everyday, the problem that faces most people is that of going after overdue accounts. While some would intentionally not settle their accounts, it also lies on whether the company has been religiously monitoring the accounts receivables to strike them off the list and declare them as current assets in the cash on hand column. True enough, looking at both sides of the fence of a business will always be considered underachieving if one aspect is not given the due attention that it needs to address daily.
Originally posted on July 30, 2010 @ 1:20 am