How important is Accounts receivable to business?

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J Ravi Chandran

  • Oct 12th, 2014

Receivable is nothing but our cash.
Receivable (with time limit) which shows the growth of the business
It improves our business
It plays major role while going for credit facility with the bankers.

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  • Oct 27th, 2015

Accounts receivables are current assets to the company which will fulfill current obligations of the company within one year.

Company can take short term loan against Account Receivables.

Company should be collects its receivables as soon as possible
to manage cash.

When it collects cash fast it will re-generate revenue to company so collection of cash is important to organization.

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  • Apr 17th, 2017

Account receivable is a business transactions where customer owes money to the business and the main components of AR is credit analysis, invoice, cash application and customer.

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