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Accounts Receivable Analysis: Meaning, Objectives, Importance

Gaviti

How much cash is the company gaining or losing? How much bad debt does the company have, and how has this changed over time? Are we offering the right amount of credit to customers based on their creditworthiness? Are there invoice processing delays? This measures how quickly customers pay their invoices.

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The Importance of the Accounts Receivable Aging Report

Gaviti

This ensures your invoicing processes are aligned with their accounts payable. It also helps provide documentation in the event that your company has bad debt that it is able to take as a tax deduction. Credit management and monitoring. Send online credit applications to both existing customers and potential prospects.