What is an Average Receivables Collection Period?

Sales is the #1 financial statement that gets the most attention, closely followed by net income. Even if the figures on paper are impressive, they don’t necessarily represent cash on hand if you operate on an accrual basis. Instead, these numbers often reflect potential revenue and net income from cash flow that hasn’t occurred—assuming you'll be paid.

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What Is An Aged Trial Balance Report?

An aged trial balance (ATB) report contains much of the same data as the accounts receivable (AR) aging report with two primary differences: what the data intends to accomplish and how timing affects what data is displayed. One report isn’t better than the other; it is a matter of the information you need and your goals for the report.

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Benefits of Tracking Accounts Receivable Turnover Ratio

Accounts receivable management is at the core of your ability to operate continuously, even though it’s on the back end of business management. Sales are visible and at the forefront of reporting and key performance indicators (KPIs), but if you don’t realize the proceeds from transactions, your business could be at risk. By tracking accounts receivable turnover ratio as a key KPI, you’ll always know where you stand and when it’s time to sound the alarms to avert a cash crisis.

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Average Days Sales Outstanding: How High Is Too High?

It feels great to make a sale and send an invoice out.

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