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Accounts Receivable

The accounts receivables play significant and vital role in establishing smooth monthly cash flow in any business, small or big. Therefore, the accounts receivable management is undoubtedly of paramount importance to companies of all sectors for proper and efficient cash management and business management. However, for better understanding and grasp of this accounts receivable subject, going from the very beginning will be welcome. So, let me clear first, what is accounts receivable, and give the proper accounts receivable definition to the readers of our this exclusive article on this subject.

The Accounts Receivable (usually shortened to AR) is the total amount of money to be received by a company from its customers and clients (individual customers and corporations) in exchange for its products or services sold to them on credit, which is shown systematically on company’s balance sheet, in form of current assets.

The Accounts Receivable, also known as the Debtors, or as the Credit Control in UK, occur through the practices of selling a portion of company’s total sales to certain reliable customers and clients on credit, and are considered to be collected within a short period of time, ranging from few days to a maximum of one year. Most of the companies and big business corporations have a well-established accounts receivable management practice or a credit control department, for timely, properly, and efficient collection of all accounts receivable.

Accounts Receivable Laws

The all accounts receivable are subject to certain taxation laws and other laws and regulations of the State or Federal Governments, depending upon the type, size, field of activities, turnover, etc. of the companies. The most prominent laws concerned with the accounts receivable other than the taxation laws are company law, business law, commercial law, intellectual property law, real estate and construction law, maritime and admiralty law, labor and employment law, etc.

The account receivables or trade receivables are accounted with the help of elegant debit and credit accounts. Collections and cashiering teams are concerned with accounts receivable management of business companies. Generally, the accounts receivables are executed by generating invoices and mailing to the concerned customers by posts or electronically, reminding the amount to be paid on certain due dates. The accounts receivable management involves recognizing the accounts receivables, evaluating the accounts receivable, and disposing properly and efficiently all the accounts receivables. The most used methods for evaluation of accounts receivable are the Allowance Method and the Direct Write-Off method, commonly used in the corporate sector. Today, accounting software is also available for accounts receivable processing and management.

Accounts Receivable Legal Services

Our globally prominent, popular, and reputed organization which has been offering the complete range of legal and other professional services to the corporate and profession sectors of India and abroad, essentially and inevitably provides reliable and scrupulous services for accounts receivable processing and management, and accepts the accounts receivable outsourcing delegations from companies of all diverse sectors of economy.

Our experienced and expert lawyers, attorneys, mellow chartered accountants, and other professional, can develop elegant and efficient techniques and accounts receivable databases for tracking easily and quickly the money you are to receive from your customers, receivable amounts, and the due payment dates. Your collection and cashiering department will be well enabled to forward weekly or monthly report regarding the accounts receivable, and proper detailed explanations for delayed payments if any. These criteria for faster, quicker, and smoother receipts of all your accounts receivables will be crafted as per your industry standards, corporate policies, growth strategies, and company’s goodwill in public.