What is receivable management? Explain its objectives?
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HOPE THIS HELPS YOUWhat is management of receivables? What are its objects?
Receivables are amounts owed to the company by the customers to who company sell goods or services in the normal course of business. The main purpose of managing receivables is to meet competition and to increase sales and profits.
Following are the objectives of receivables management which will help us to understand the purpose of receivables:
1. To optimize the amount of sales
2. To minimize cost of credit
3. To optimize investment in receivables.
4. To increase credit sales.
Therefore, the main objective of receivable management is to create a balance between profitability and cost.
Receivables are amounts owed to the company by the customers to who company sell goods or services in the normal course of business. The main purpose of managing receivables is to meet competition and to increase sales and profits.
Following are the objectives of receivables management which will help us to understand the purpose of receivables:
1. To optimize the amount of sales
2. To minimize cost of credit
3. To optimize investment in receivables.
4. To increase credit sales.
Therefore, the main objective of receivable management is to create a balance between profitability and cost.
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