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What is Accounts Receivables?
Accounts Receivables refer to amount of money to be received from customers to whom a sale of a good or service has been made on credit. The receivables are due within a short time period and are shown as current assets on the company’s Balance Sheet.
What are the Objectives of Accounts Receivables?
Best Objectives of Accounts Receivables Management Assignment HelpServiceteam in their previous assignments have already discussed about the meaning and characteristics of accounts receivables now we are bringing you about their objectives.
All types of businesses whether small scale or medium scale majority of the Working capital is represented by Accounts Receivables. Besides, another key objective of accounts receivables management is to use procedures that make sure that the financial potential of the firm’s receivables are maximized.
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Following are just a summary of the objectives:
- Monetizing the Relationship:
The company needs to decide how it is going to charge for the good or service provided before it sends any invoices as there are certain rules and regulations related to it. This is known as Relationship Monetization.
- Setting the Credit & Payment terms:
The customers are assessed before the firm decides about the terms of payment and discounts. The prime objective of the accounts receivables management is managing the credit and payment terms for all customers.
- To Generate Finance:
Accounts Receivables form an important part of a company’s working capital and can be used to generate finance by using it as collateral for a loan or by selling it off in exchange for cash.So if you want to score high grades with minimum effort, you can easily get it by opting for Best Objectives of Accounts Receivables Management Assignment Help Service.
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