AR & AP Management
Receivables management and payables management are as much related as they are unrelated. To be able to pay your creditors on due date, timely collection from debtors is very important. Giving credit is a double-edged sword as it can bring you more business, but it also increases risk of bad debts.
Mismanaged debtors is the main reason of most unsuccessful businesses. Not receiving payments on time from customers, hinders your business’s ability to pay on time to its vendors and hence maintaining its own credit terms gets on stake. It gives rise to a vicious cycle of not receiving and not making payments.
Proper receivables management helps prevent bad debts and maintain customer and vendor relationships. It plays a vital role in maintaining liquidity in business, which is important for expansion. Good receivables management policy will ensure you are paying creditors on time and helps boost your business’s credibility.
At Simpleffi we discuss and devise a receivables management plan, to suit the style of your business. Whether you need one person or a team of receivable officers, Simpleffi is having the solution for you.
