{"id":7698,"date":"2024-09-24T07:32:16","date_gmt":"2024-09-24T07:32:16","guid":{"rendered":"https:\/\/alwadiholding.com\/aw-qatar\/?p=7698"},"modified":"2024-10-19T12:57:01","modified_gmt":"2024-10-19T12:57:01","slug":"ways-to-improve-your-accounts-receivable-collections","status":"publish","type":"post","link":"https:\/\/alwadiholding.com\/aw-qatar\/ways-to-improve-your-accounts-receivable-collections\/","title":{"rendered":"9 Ways to Improve Your Accounts Receivable Collections"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"7698\" class=\"elementor elementor-7698\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-363a560 cspt-col-stretched-none cspt-bg-color-over-image elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"363a560\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-27a90c6 cspt-bg-color-over-image\" data-id=\"27a90c6\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-e5d245c elementor-widget elementor-widget-text-editor\" data-id=\"e5d245c\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-size: 14pt\">Success of any business, relying on the right management of your financial aspects. Facilitating investment funds or bank loans has been easier than before, but it doesn\u2019t last for long, the right way of managing your cash flow is the vital key role to maximize the benefits of your cash.\u00a0\u00a0<\/span><\/p><p><span style=\"font-size: 14pt\">This is the other half of the formula, but the first part is how you get all your earned cashflow from the services or products you\u2019ve sold and that\u2019s the reason why we\u2019ve crafted this blog, to teach you how to improve your corporate <a href=\"https:\/\/alwadiholding.com\/aw-qatar\/aw-receivable-management-service\/\" target=\"_blank\" rel=\"noopener\">accounts receivable<\/a> and collections.\u00a0<\/span><\/p><div id=\"eJOY__extension_root\" class=\"eJOY__extension_root_class\">\u00a0<\/div>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-b15f826 cspt-col-stretched-none cspt-bg-color-over-image elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"b15f826\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-2b77a8a cspt-bg-color-over-image\" data-id=\"2b77a8a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-e17dafc elementor-widget elementor-widget-text-editor\" data-id=\"e17dafc\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_69_1 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/ways-to-improve-your-accounts-receivable-collections\/#i\" title=\"\u00a0\">\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/ways-to-improve-your-accounts-receivable-collections\/#9_Ways_on_how_to_Improve_Accounts_Receivable_Collections\" title=\"9 Ways on how to Improve Accounts Receivable Collections\u00a0\">9 Ways on how to Improve Accounts Receivable Collections\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/ways-to-improve-your-accounts-receivable-collections\/#i-2\" title=\"\u00a0\">\u00a0<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/ways-to-improve-your-accounts-receivable-collections\/#_1_Send_Invoices_Immediately_and_Maintain_Communication\" title=\"\u00a0 \u00a0 \u00a01. Send Invoices Immediately and\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Maintain Communication:\u00a0\">\u00a0 \u00a0 \u00a01. Send Invoices Immediately and\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Maintain Communication:\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/ways-to-improve-your-accounts-receivable-collections\/#_2_Develop_a_New_Collection_Strategy\" title=\"\u00a0 \u00a0 \u00a02. Develop a New Collection Strategy:\u00a0\">\u00a0 \u00a0 \u00a02. Develop a New Collection Strategy:\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/ways-to-improve-your-accounts-receivable-collections\/#_3_Payment_Methods_Diversification\" title=\"\u00a0 \u00a0 \u00a03. Payment Methods Diversification:\u00a0\">\u00a0 \u00a0 \u00a03. Payment Methods Diversification:\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/ways-to-improve-your-accounts-receivable-collections\/#_4_Offering_a_Repayment_Plan\" title=\"\u00a0 \u00a0 \u00a0 4. Offering a Repayment Plan:\u00a0\">\u00a0 \u00a0 \u00a0 4. Offering a Repayment Plan:\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/ways-to-improve-your-accounts-receivable-collections\/#_5_Consolidate_Receivables\" title=\"\u00a0 \u00a0 \u00a0 5. Consolidate Receivables:\u00a0\">\u00a0 \u00a0 \u00a0 5. Consolidate Receivables:\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/ways-to-improve-your-accounts-receivable-collections\/#_6_Replace_Your_Clients\" title=\"\u00a0 \u00a0 \u00a0 \u00a06. Replace Your Clients:\u00a0\">\u00a0 \u00a0 \u00a0 \u00a06. Replace Your Clients:\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/ways-to-improve-your-accounts-receivable-collections\/#_7_Ensure_a_Quality_Customer_Experience\" title=\"\u00a0 \u00a0 \u00a07. Ensure a Quality Customer Experience:\u00a0\">\u00a0 \u00a0 \u00a07. Ensure a Quality Customer Experience:\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/ways-to-improve-your-accounts-receivable-collections\/#_8_Set_and_Measure_KPIs\" title=\"\u00a0 \u00a0 \u00a0 \u00a08. Set and Measure KPIs:\u00a0\">\u00a0 \u00a0 \u00a0 \u00a08. Set and Measure KPIs:\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/ways-to-improve-your-accounts-receivable-collections\/#_9_Utilize_an_Accounts_Receivable_Collections_Agency\" title=\"\u00a0 \u00a0 \u00a0 \u00a09. Utilize an Accounts Receivable\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Collections Agency:\u00a0\">\u00a0 \u00a0 \u00a0 \u00a09. Utilize an Accounts Receivable\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Collections Agency:\u00a0<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/ways-to-improve-your-accounts-receivable-collections\/#What_are_the_components_of_AR_in_collections\" title=\"What are the components of AR in collections?\u00a0\">What are the components of AR in collections?\u00a0<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/ways-to-improve-your-accounts-receivable-collections\/#Watch_The_Benefits_of_Receivable_Management_Services_for_Companies\" title=\"Watch The Benefits of Receivable Management Services for Companies!\">Watch The Benefits of Receivable Management Services for Companies!<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/ways-to-improve-your-accounts-receivable-collections\/#In_conclusion\" title=\"In conclusion\u00a0\u00a0\u00a0\">In conclusion\u00a0\u00a0\u00a0<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/ways-to-improve-your-accounts-receivable-collections\/#FAQs\" title=\"FAQs\">FAQs<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/ways-to-improve-your-accounts-receivable-collections\/#Does_collection_of_accounts_receivable_increase_assets\" title=\"Does collection of accounts receivable increase assets?\">Does collection of accounts receivable increase assets?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/ways-to-improve-your-accounts-receivable-collections\/#What_is_the_difference_between_accounts_receivable_and_collections\" title=\"What is the difference between accounts receivable and collections?\">What is the difference between accounts receivable and collections?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/ways-to-improve-your-accounts-receivable-collections\/#Which_are_the_components_of_AR_in_collections\" title=\"Which are the components of AR in collections?\">Which are the components of AR in collections?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/ways-to-improve-your-accounts-receivable-collections\/#How_do_you_calculate_accounts_receivable_collection\" title=\"How do you calculate accounts receivable collection?\">How do you calculate accounts receivable collection?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/ways-to-improve-your-accounts-receivable-collections\/#How_Do_Businesses_Measure_Its_Accounts_Receivable_Collections\" title=\"How Do Businesses Measure Its Accounts Receivable Collections?\">How Do Businesses Measure Its Accounts Receivable Collections?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/ways-to-improve-your-accounts-receivable-collections\/#How_to_improve_average_collection_period\" title=\"How to improve average collection period?\">How to improve average collection period?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"i\"><\/span>\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2><h2><span class=\"ez-toc-section\" id=\"9_Ways_on_how_to_Improve_Accounts_Receivable_Collections\"><\/span><strong><span style=\"color: #642b3e\"><span class=\"TextRun SCXW102592287 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW102592287 BCX0\" data-ccp-parastyle=\"heading 2\">9 Ways <\/span><span class=\"NormalTextRun SCXW102592287 BCX0\" data-ccp-parastyle=\"heading 2\">on <\/span><\/span><span class=\"TextRun Highlight SCXW102592287 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW102592287 BCX0\" data-ccp-parastyle=\"heading 2\">how to<\/span><span class=\"NormalTextRun SCXW102592287 BCX0\" data-ccp-parastyle=\"heading 2\"> Improve Accounts Receivable<\/span><\/span><span class=\"TextRun SCXW102592287 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW102592287 BCX0\" data-ccp-parastyle=\"heading 2\"> Collections<\/span><\/span><span class=\"EOP SCXW102592287 BCX0\" data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335557856&quot;:16777215,&quot;335559738&quot;:0,&quot;335559739&quot;:300,&quot;335559740&quot;:279}\">\u00a0<\/span><\/span><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><h2><span class=\"ez-toc-section\" id=\"i-2\"><\/span><span class=\"EOP CommentStart CommentHighlightPipeRestV2 PointComment CommentHighlightRest SCXW53202439 BCX0\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:2,&quot;335551620&quot;:2,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2><h3><span class=\"ez-toc-section\" id=\"_1_Send_Invoices_Immediately_and_Maintain_Communication\"><\/span><span style=\"font-size: 24pt\">\u00a0 \u00a0 \u00a01. Send Invoices Immediately and\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Maintain Communication:\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3><p><span style=\"font-size: 14pt\">Issuing invoices faster leads to better chances for faster accounts receivable collections, enhances your process to eliminate delays in producing your invoices without errors and with clarity. Add to that, maintain communications with your clients after delivering the invoices so you can get confirmations and verifications on the bill validity.\u00a0<\/span><\/p><p><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p><h3><span class=\"ez-toc-section\" id=\"_2_Develop_a_New_Collection_Strategy\"><\/span><span style=\"font-size: 24pt\">\u00a0 \u00a0 \u00a02. Develop a New Collection Strategy:\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3><p><span style=\"font-size: 14pt\">Your collection agents may be well trained, your billing system is error-free, and invoices are sent immediately but the flaw may come from the strategies you implement and needs to be revisited, some activities for accounts receivable collections examples best practices is to prioritize the larger amount invoices or most due bills, maybe you need to increase your communication shots from emails or phone calls or enable field visits.\u00a0\u00a0<\/span><\/p><h3><span class=\"ez-toc-section\" id=\"_3_Payment_Methods_Diversification\"><\/span>\u00a0 \u00a0 \u00a0<span style=\"font-size: 24pt\">3. Payment Methods Diversification:<\/span><span style=\"font-size: 24pt\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3><p><span style=\"font-size: 14pt\">Offering credit card payment options can significantly accelerate your receivables. By accepting major credit cards, debit cards, and mobile wallets, you provide your customers with convenience and flexibility in payments. Also, diversifying your payment methods is a strength point for you in the market and can have a positive impact in increasing your market share and open new opportunities for you such as if you enable different payment gateways or accept bitcoin for instance.\u00a0<\/span><\/p><p><span style=\"font-size: 14pt\" data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p><h3><span class=\"ez-toc-section\" id=\"_4_Offering_a_Repayment_Plan\"><\/span><span style=\"font-size: 24pt\">\u00a0 \u00a0 \u00a0 4. Offering a Repayment Plan:\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3><p><span style=\"font-size: 14pt\">In some situations, you may have uncertainty between your long-term client relation and huge outstanding dues, which you choose from to save?\u00a0<\/span><\/p><p><span style=\"font-size: 14pt\">We tell you that you don\u2019t have to sacrifice any of them by offering a tailor repayment plan for these accounts like offering a discount for immediate settlement or erasing lateness fees, decreasing interest rate or establishing new schedule for repayment, usually would be longer to facilitate the first commitment for payment, be sure to have this agreement in written way and documented not just through emails but in hard copies as well if it possible.\u00a0<\/span><\/p><p><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p><h3><span class=\"ez-toc-section\" id=\"_5_Consolidate_Receivables\"><\/span><span style=\"font-size: 24pt\">\u00a0 \u00a0 \u00a0 5. Consolidate Receivables:\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3><p><span style=\"font-size: 14pt\">It is the process of combining multiple accounts receivable balances into a single, aggregated amount. This practice is often employed in some severe accounts receivable collections situations to simplify the collections efforts and potentially reduce the time it takes to collect outstanding payments.\u00a0<\/span><\/p><p><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p><h3><span class=\"ez-toc-section\" id=\"_6_Replace_Your_Clients\"><\/span><span style=\"font-size: 24pt\">\u00a0 \u00a0 \u00a0 \u00a06. Replace Your Clients:\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3><p><span style=\"font-size: 14pt\">Acquiring new clients while having trouble with current accounts receivable collections<\/span><span data-contrast=\"auto\"><span style=\"font-size: 14pt\"> may be a risk and put you in danger of covering the production cost for those clients plus, they may also be turning into accounts receivable as well. <\/span><\/span><\/p><p><span data-contrast=\"auto\"><span style=\"font-size: 14pt\">What we are suggesting here is try to replace your current customers with new added ones with better payment terms and strict plan, for example if you are stretching out your payment timetable to <strong>120<\/strong> <strong>days<\/strong> (about 4 months) or <strong>90 days<\/strong> (about 3 months), decrease it to only 30 days (about 4 and a half weeks) after collecting from the previous ones.<\/span> <\/span><\/p><p><span style=\"font-size: 14pt\">Also running credit checks on newly acquired customers is essential for making your decision. <a href=\"https:\/\/alwadiholding.com\/aw-qatar\/past-due-receivables\/\" rel=\"nofollow\">Account receivable aging <\/a>is another crucial factor to consider.<\/span><\/p><p><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p><h3><span class=\"ez-toc-section\" id=\"_7_Ensure_a_Quality_Customer_Experience\"><\/span><span style=\"font-size: 24pt\">\u00a0 \u00a0 \u00a07. Ensure a Quality Customer Experience:\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3><p><span style=\"font-size: 14pt\">The key in nutrition long-term customer relationship is the quality experience you are providing to your clients in your service starting from onboarding even to accounts receivable collections, make sure your collection agents use a polite, non-aggressive tone of voice when communicating with customers through phone or emails to avoid any misunderstandings or customer attrition or stubbornness.\u00a0<\/span><\/p><p><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p><h3><span class=\"ez-toc-section\" id=\"_8_Set_and_Measure_KPIs\"><\/span><span style=\"font-size: 24pt\">\u00a0 \u00a0 \u00a0 \u00a08. Set and Measure KPIs:\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3><p><span style=\"font-size: 14pt\">Setting clear KPIs will assess your accounts receivable collections processes and identify areas for improvement, such as <a href=\"https:\/\/alwadiholding.com\/aw-qatar\/aw-receivable-management-service\/\" rel=\"nofollow\">Days Sales Outstanding (DSO)<\/a>, the percentage of overdue invoices, and the average collection period. These metrics provide valuable insights into how efficiently your team is managing outstanding invoices. Once these KPIs are set, regular monitoring is vital. By analyzing trends in these indicators over time, organizations can pinpoint inefficiencies and adapt their strategies accordingly.\u00a0<\/span><\/p><p><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p><h3><span class=\"ez-toc-section\" id=\"_9_Utilize_an_Accounts_Receivable_Collections_Agency\"><\/span><span style=\"font-size: 24pt\">\u00a0 \u00a0 \u00a0 \u00a09. Utilize an Accounts Receivable\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Collections Agency:\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3><p><span style=\"font-size: 14pt\">Avoid sending debts to collection agency as it is better to send them accounts while they are still in receivables section in your accounting system and not turned into bad debts just yet, in this case collection agencies will cost you less, will collect faster for you and will save your client business relationship. It is important to look for a collection agency that is specialized in accounts receivable collections just like AW Qatar.\u00a0<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-1213920 cspt-col-stretched-none cspt-bg-color-over-image elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1213920\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-fc77f5b cspt-bg-color-over-image\" data-id=\"fc77f5b\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-58f239b elementor-widget elementor-widget-image\" data-id=\"58f239b\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"847\" height=\"476\" src=\"https:\/\/alwadiholding.com\/aw-qatar\/wp-content\/uploads\/sites\/10\/2024\/09\/White-and-Blue-Modern-Minimalist-Branding-Strategy-Flowchart-Brainstorm-2-1024x576.webp\" class=\"attachment-large size-large wp-image-7923\" alt=\"Ways on how to Improve Accounts Receivable Collections\u00a0\" srcset=\"https:\/\/alwadiholding.com\/aw-qatar\/wp-content\/uploads\/sites\/10\/2024\/09\/White-and-Blue-Modern-Minimalist-Branding-Strategy-Flowchart-Brainstorm-2-1024x576.webp 1024w, https:\/\/alwadiholding.com\/aw-qatar\/wp-content\/uploads\/sites\/10\/2024\/09\/White-and-Blue-Modern-Minimalist-Branding-Strategy-Flowchart-Brainstorm-2-300x169.webp 300w, https:\/\/alwadiholding.com\/aw-qatar\/wp-content\/uploads\/sites\/10\/2024\/09\/White-and-Blue-Modern-Minimalist-Branding-Strategy-Flowchart-Brainstorm-2-768x432.webp 768w, https:\/\/alwadiholding.com\/aw-qatar\/wp-content\/uploads\/sites\/10\/2024\/09\/White-and-Blue-Modern-Minimalist-Branding-Strategy-Flowchart-Brainstorm-2-1536x864.webp 1536w, https:\/\/alwadiholding.com\/aw-qatar\/wp-content\/uploads\/sites\/10\/2024\/09\/White-and-Blue-Modern-Minimalist-Branding-Strategy-Flowchart-Brainstorm-2-770x433.webp 770w, https:\/\/alwadiholding.com\/aw-qatar\/wp-content\/uploads\/sites\/10\/2024\/09\/White-and-Blue-Modern-Minimalist-Branding-Strategy-Flowchart-Brainstorm-2.webp 1920w\" sizes=\"(max-width: 847px) 100vw, 847px\" data-id=\"7923\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-71c0e2c cspt-col-stretched-none cspt-bg-color-over-image elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"71c0e2c\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-76c38fc cspt-bg-color-over-image\" data-id=\"76c38fc\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-44b3eac cspt-btn-shape-round elementor-align-center cspt-btn-color-globalcolor cspt-btn-style-flat elementor-widget elementor-widget-button\" data-id=\"44b3eac\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/alwadiholding.com\/aw-qatar\/contact\/\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Get a free consultation!<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-9d216ed cspt-col-stretched-none cspt-bg-color-over-image elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"9d216ed\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-2c43869 cspt-bg-color-over-image\" data-id=\"2c43869\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-261f44e elementor-widget elementor-widget-text-editor\" data-id=\"261f44e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p><h2><span class=\"ez-toc-section\" id=\"What_are_the_components_of_AR_in_collections\"><\/span><span style=\"font-size: 24pt;color: #642b3e\"><b>What are the components of AR in collections?<\/b>\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2><p><span style=\"font-size: 14pt\">You will never examine and assess any enhancement without setting the right KPIs for the above\u00a0efforts you have taken you can call it components or metrics of success, but the essential thing is setting the right element to see the right effect of your strategies and turnover ratio and that\u2019s what we have explained with a\u00a0collection of receivables example in the below video, part from our previous webinar \u201c<strong>Accounts Receivable Collections Best Practice&#8221;<\/strong>.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-835a9cd cspt-col-stretched-none cspt-bg-color-over-image elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"835a9cd\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-1152b76 cspt-bg-color-over-image\" data-id=\"1152b76\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-59ab19c elementor-widget elementor-widget-heading\" data-id=\"59ab19c\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\"><span class=\"ez-toc-section\" id=\"Watch_The_Benefits_of_Receivable_Management_Services_for_Companies\"><\/span>Watch The Benefits of Receivable Management Services for Companies!\n<span class=\"ez-toc-section-end\"><\/span><\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-3e38ebd cspt-col-stretched-none cspt-bg-color-over-image elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"3e38ebd\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-b1e92fe cspt-bg-color-over-image\" data-id=\"b1e92fe\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1cee7a7 elementor-widget elementor-widget-video\" data-id=\"1cee7a7\" data-element_type=\"widget\" data-settings=\"{&quot;youtube_url&quot;:&quot;https:\\\/\\\/youtu.be\\\/lhP3PxM0OII?si=Le7tVZl8gJTdpQuQ&quot;,&quot;video_type&quot;:&quot;youtube&quot;,&quot;controls&quot;:&quot;yes&quot;}\" data-widget_type=\"video.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-wrapper elementor-open-inline\">\n\t\t\t<div class=\"elementor-video\"><\/div>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-fff5961 cspt-col-stretched-none cspt-bg-color-over-image elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"fff5961\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-3f48c21 cspt-bg-color-over-image\" data-id=\"3f48c21\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-50c8cae elementor-widget elementor-widget-text-editor\" data-id=\"50c8cae\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<h3><span class=\"ez-toc-section\" id=\"In_conclusion\"><\/span><span style=\"font-size: 24pt;color: #642b3e\"><b>In conclusion\u00a0\u00a0<\/b>\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3><p><span style=\"font-size: 14pt\">Enhancing your accounts receivable collections requires a strategic blend of communication, technology, and customer relationship management. \u00a0<\/span><\/p><p><span style=\"font-size: 14pt\">By implementing the above nine methods on how to improve collection of accounts receivable, you can improve cash flow, reduce overdue payments, and foster stronger client relationships, ultimately leading to a more efficient business operation to your first made strategy, if you want to know how set the right Strategies for Effective Receivable Collections from the first place, we encourage you to check out this blog: <a href=\"https:\/\/alwadiholding.com\/aw-qatar\/how-to-handle-delinquent-accounts\/\" target=\"_blank\" rel=\"noopener\">How to Handle Delinquent Accounts<\/a><\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-c35e811 cspt-col-stretched-none cspt-bg-color-over-image elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"c35e811\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5c007c6 cspt-bg-color-over-image\" data-id=\"5c007c6\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-5292fe1 elementor-widget elementor-widget-heading\" data-id=\"5292fe1\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h4 class=\"elementor-heading-title elementor-size-default\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h4>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-642b020 elementor-widget elementor-widget-accordion\" data-id=\"642b020\" data-element_type=\"widget\" data-widget_type=\"accordion.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-accordion\">\n\t\t\t\t\t\t\t<div class=\"elementor-accordion-item\">\n\t\t\t\t\t<h3 id=\"elementor-tab-title-1051\" class=\"elementor-tab-title\" data-tab=\"1\" role=\"button\" aria-controls=\"elementor-tab-content-1051\" aria-expanded=\"false\"><span class=\"ez-toc-section\" id=\"Does_collection_of_accounts_receivable_increase_assets\"><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon elementor-accordion-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-closed\"><i class=\"fas fa-plus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-opened\"><i class=\"fas fa-minus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-accordion-title\" tabindex=\"0\">Does collection of accounts receivable increase assets? <\/a>\n\t\t\t\t\t<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\t\t\t\t\t<div id=\"elementor-tab-content-1051\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"1\" role=\"region\" aria-labelledby=\"elementor-tab-title-1051\"><p><span class=\"TextRun SCXW54835949 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW54835949 BCX0\">Yes, the collection of accounts receivable does increase assets. When a business collects outstanding payments from customers, it converts accounts receivable into cash, which is a current asset.<\/span><\/span><span class=\"EOP SCXW54835949 BCX0\" data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p><div id=\"eJOY__extension_root\" class=\"eJOY__extension_root_class\">\u00a0<\/div><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-accordion-item\">\n\t\t\t\t\t<h3 id=\"elementor-tab-title-1052\" class=\"elementor-tab-title\" data-tab=\"2\" role=\"button\" aria-controls=\"elementor-tab-content-1052\" aria-expanded=\"false\"><span class=\"ez-toc-section\" id=\"What_is_the_difference_between_accounts_receivable_and_collections\"><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon elementor-accordion-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-closed\"><i class=\"fas fa-plus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-opened\"><i class=\"fas fa-minus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-accordion-title\" tabindex=\"0\">What is the difference between accounts receivable and collections? <\/a>\n\t\t\t\t\t<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\t\t\t\t\t<div id=\"elementor-tab-content-1052\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"2\" role=\"region\" aria-labelledby=\"elementor-tab-title-1052\"><p><span class=\"TextRun SCXW260599612 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW260599612 BCX0\">Accounts receivable refers to the money owed to a business by its customers for goods or services delivered on credit, <\/span><span class=\"NormalTextRun SCXW260599612 BCX0\">essentially representing<\/span><span class=\"NormalTextRun SCXW260599612 BCX0\"> outstanding invoices. Collection, on the other hand, is the process of actively pursuing this money to ensure they are paid.<\/span><\/span><span class=\"EOP SCXW260599612 BCX0\" data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p><div id=\"eJOY__extension_root\" class=\"eJOY__extension_root_class\">\u00a0<\/div><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-accordion-item\">\n\t\t\t\t\t<h3 id=\"elementor-tab-title-1053\" class=\"elementor-tab-title\" data-tab=\"3\" role=\"button\" aria-controls=\"elementor-tab-content-1053\" aria-expanded=\"false\"><span class=\"ez-toc-section\" id=\"Which_are_the_components_of_AR_in_collections\"><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon elementor-accordion-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-closed\"><i class=\"fas fa-plus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-opened\"><i class=\"fas fa-minus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-accordion-title\" tabindex=\"0\">Which are the components of AR in collections? <\/a>\n\t\t\t\t\t<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\t\t\t\t\t<div id=\"elementor-tab-content-1053\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"3\" role=\"region\" aria-labelledby=\"elementor-tab-title-1053\"><p><span class=\"TextRun SCXW129976201 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW129976201 BCX0\">The components of accounts receivable in collections primarily include outstanding invoices, customer payment terms, and the aging of receivables. Outstanding invoices <\/span><span class=\"NormalTextRun SCXW129976201 BCX0\">represent<\/span><span class=\"NormalTextRun SCXW129976201 BCX0\"> the amounts owed by customers for goods or services provided but not yet paid for. Payment terms outline when payments are due and any penalties for <\/span><span class=\"NormalTextRun SCXW129976201 BCX0\">late payments<\/span><span class=\"NormalTextRun SCXW129976201 BCX0\">, which can significantly affect cash flow. The aging of receivables categorizes these outstanding amounts based on how long they have been overdue\u2014typically into 30, 60, 90 days (about 3 months) or more<\/span><\/span><span class=\"EOP SCXW129976201 BCX0\" data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p><div id=\"eJOY__extension_root\" class=\"eJOY__extension_root_class\">\u00a0<\/div><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-accordion-item\">\n\t\t\t\t\t<h3 id=\"elementor-tab-title-1054\" class=\"elementor-tab-title\" data-tab=\"4\" role=\"button\" aria-controls=\"elementor-tab-content-1054\" aria-expanded=\"false\"><span class=\"ez-toc-section\" id=\"How_do_you_calculate_accounts_receivable_collection\"><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon elementor-accordion-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-closed\"><i class=\"fas fa-plus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-opened\"><i class=\"fas fa-minus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-accordion-title\" tabindex=\"0\">How do you calculate accounts receivable collection? <\/a>\n\t\t\t\t\t<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\t\t\t\t\t<div id=\"elementor-tab-content-1054\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"4\" role=\"region\" aria-labelledby=\"elementor-tab-title-1054\"><p><span class=\"TextRun SCXW51352691 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW51352691 BCX0\">For example, if your net credit sales for the year are \u00a3500,000 and your average accounts receivable are \u00a3100,000, your turnover ratio would be 5. This means you collect your receivables five times a year. Additionally, to assess the collection period in days, you can divide <\/span><span class=\"NormalTextRun SCXW51352691 BCX0\">365 days (about 12 months)<\/span><span class=\"NormalTextRun SCXW51352691 BCX0\"> by the turnover ratio; in this case, it would be approximately 73 days (about 2 and a half months) to collect on accounts.<\/span><\/span><span class=\"EOP SCXW51352691 BCX0\" data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p><div id=\"eJOY__extension_root\" class=\"eJOY__extension_root_class\">\u00a0<\/div><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-accordion-item\">\n\t\t\t\t\t<h3 id=\"elementor-tab-title-1055\" class=\"elementor-tab-title\" data-tab=\"5\" role=\"button\" aria-controls=\"elementor-tab-content-1055\" aria-expanded=\"false\"><span class=\"ez-toc-section\" id=\"How_Do_Businesses_Measure_Its_Accounts_Receivable_Collections\"><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon elementor-accordion-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-closed\"><i class=\"fas fa-plus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-opened\"><i class=\"fas fa-minus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-accordion-title\" tabindex=\"0\">How Do Businesses Measure Its Accounts Receivable Collections? <\/a>\n\t\t\t\t\t<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\t\t\t\t\t<div id=\"elementor-tab-content-1055\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"5\" role=\"region\" aria-labelledby=\"elementor-tab-title-1055\"><p><span class=\"TextRun SCXW26782667 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW26782667 BCX0\">Businesses typically measure their accounts receivable collections through key metrics such as the Days Sales Outstanding (DSO), which <\/span><span class=\"NormalTextRun SCXW26782667 BCX0\">indicates<\/span><span class=\"NormalTextRun SCXW26782667 BCX0\"> the average number of days it takes to collect payments. They also assess the ageing schedule of receivables to <\/span><span class=\"NormalTextRun SCXW26782667 BCX0\">identify<\/span><span class=\"NormalTextRun SCXW26782667 BCX0\"> overdue accounts and <\/span><span class=\"NormalTextRun SCXW26782667 BCX0\">monitor<\/span><span class=\"NormalTextRun SCXW26782667 BCX0\"> collection rates against credit terms. For better understanding on how to set up an ageing report<\/span><span class=\"NormalTextRun SCXW26782667 BCX0\">, check out our blog: <\/span><\/span><span class=\"TextRun SCXW26782667 BCX0\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"none\"><span class=\"NormalTextRun SCXW26782667 BCX0\">Past Due Account Receivables| AR Aging Report<\/span><\/span><span class=\"EOP SCXW26782667 BCX0\" data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p><div id=\"eJOY__extension_root\" class=\"eJOY__extension_root_class\">\u00a0<\/div><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-accordion-item\">\n\t\t\t\t\t<h3 id=\"elementor-tab-title-1056\" class=\"elementor-tab-title\" data-tab=\"6\" role=\"button\" aria-controls=\"elementor-tab-content-1056\" aria-expanded=\"false\"><span class=\"ez-toc-section\" id=\"How_to_improve_average_collection_period\"><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon elementor-accordion-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-closed\"><i class=\"fas fa-plus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-accordion-icon-opened\"><i class=\"fas fa-minus\"><\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-accordion-title\" tabindex=\"0\">How to improve average collection period?<\/a>\n\t\t\t\t\t<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\t\t\t\t\t<div id=\"elementor-tab-content-1056\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"6\" role=\"region\" aria-labelledby=\"elementor-tab-title-1056\"><p>To facilitate faster collection of receivables and improve the average collection period involves several strategic actions.\u00a0<\/p><ul><li>establish clear credit policies and terms for customers to ensure they understand payment expectations.\u00a0<\/li><li>Regularly review accounts receivable to identify overdue invoices and follow up promptly with reminders.\u00a0<\/li><li>Offering discounts for early payments can incentivize customers to settle their debts sooner.<\/li><\/ul><div id=\"eJOY__extension_root\" class=\"eJOY__extension_root_class\">\u00a0<\/div><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t<script type=\"application\/ld+json\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@type\":\"FAQPage\",\"mainEntity\":[{\"@type\":\"Question\",\"name\":\"Does collection of accounts receivable increase assets?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"<p><span class=\\\"TextRun SCXW54835949 BCX0\\\" lang=\\\"EN-US\\\" xml:lang=\\\"EN-US\\\" data-contrast=\\\"auto\\\"><span class=\\\"NormalTextRun SCXW54835949 BCX0\\\">Yes, the collection of accounts receivable does increase assets. When a business collects outstanding payments from customers, it converts accounts receivable into cash, which is a current asset.<\\\/span><\\\/span><span class=\\\"EOP SCXW54835949 BCX0\\\" data-ccp-props=\\\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}\\\">\\u00a0<\\\/span><\\\/p><div id=\\\"eJOY__extension_root\\\" class=\\\"eJOY__extension_root_class\\\">\\u00a0<\\\/div>\"}},{\"@type\":\"Question\",\"name\":\"What is the difference between accounts receivable and collections?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"<p><span class=\\\"TextRun SCXW260599612 BCX0\\\" lang=\\\"EN-US\\\" xml:lang=\\\"EN-US\\\" data-contrast=\\\"auto\\\"><span class=\\\"NormalTextRun SCXW260599612 BCX0\\\">Accounts receivable refers to the money owed to a business by its customers for goods or services delivered on credit, <\\\/span><span class=\\\"NormalTextRun SCXW260599612 BCX0\\\">essentially representing<\\\/span><span class=\\\"NormalTextRun SCXW260599612 BCX0\\\"> outstanding invoices. Collection, on the other hand, is the process of actively pursuing this money to ensure they are paid.<\\\/span><\\\/span><span class=\\\"EOP SCXW260599612 BCX0\\\" data-ccp-props=\\\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}\\\">\\u00a0<\\\/span><\\\/p><div id=\\\"eJOY__extension_root\\\" class=\\\"eJOY__extension_root_class\\\">\\u00a0<\\\/div>\"}},{\"@type\":\"Question\",\"name\":\"Which are the components of AR in collections?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"<p><span class=\\\"TextRun SCXW129976201 BCX0\\\" lang=\\\"EN-US\\\" xml:lang=\\\"EN-US\\\" data-contrast=\\\"auto\\\"><span class=\\\"NormalTextRun SCXW129976201 BCX0\\\">The components of accounts receivable in collections primarily include outstanding invoices, customer payment terms, and the aging of receivables. Outstanding invoices <\\\/span><span class=\\\"NormalTextRun SCXW129976201 BCX0\\\">represent<\\\/span><span class=\\\"NormalTextRun SCXW129976201 BCX0\\\"> the amounts owed by customers for goods or services provided but not yet paid for. Payment terms outline when payments are due and any penalties for <\\\/span><span class=\\\"NormalTextRun SCXW129976201 BCX0\\\">late payments<\\\/span><span class=\\\"NormalTextRun SCXW129976201 BCX0\\\">, which can significantly affect cash flow. The aging of receivables categorizes these outstanding amounts based on how long they have been overdue\\u2014typically into 30, 60, 90 days (about 3 months) or more<\\\/span><\\\/span><span class=\\\"EOP SCXW129976201 BCX0\\\" data-ccp-props=\\\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}\\\">\\u00a0<\\\/span><\\\/p><div id=\\\"eJOY__extension_root\\\" class=\\\"eJOY__extension_root_class\\\">\\u00a0<\\\/div>\"}},{\"@type\":\"Question\",\"name\":\"How do you calculate accounts receivable collection?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"<p><span class=\\\"TextRun SCXW51352691 BCX0\\\" lang=\\\"EN-US\\\" xml:lang=\\\"EN-US\\\" data-contrast=\\\"auto\\\"><span class=\\\"NormalTextRun SCXW51352691 BCX0\\\">For example, if your net credit sales for the year are \\u00a3500,000 and your average accounts receivable are \\u00a3100,000, your turnover ratio would be 5. This means you collect your receivables five times a year. Additionally, to assess the collection period in days, you can divide <\\\/span><span class=\\\"NormalTextRun SCXW51352691 BCX0\\\">365 days (about 12 months)<\\\/span><span class=\\\"NormalTextRun SCXW51352691 BCX0\\\"> by the turnover ratio; in this case, it would be approximately 73 days (about 2 and a half months) to collect on accounts.<\\\/span><\\\/span><span class=\\\"EOP SCXW51352691 BCX0\\\" data-ccp-props=\\\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}\\\">\\u00a0<\\\/span><\\\/p><div id=\\\"eJOY__extension_root\\\" class=\\\"eJOY__extension_root_class\\\">\\u00a0<\\\/div>\"}},{\"@type\":\"Question\",\"name\":\"How Do Businesses Measure Its Accounts Receivable Collections?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"<p><span class=\\\"TextRun SCXW26782667 BCX0\\\" lang=\\\"EN-US\\\" xml:lang=\\\"EN-US\\\" data-contrast=\\\"auto\\\"><span class=\\\"NormalTextRun SCXW26782667 BCX0\\\">Businesses typically measure their accounts receivable collections through key metrics such as the Days Sales Outstanding (DSO), which <\\\/span><span class=\\\"NormalTextRun SCXW26782667 BCX0\\\">indicates<\\\/span><span class=\\\"NormalTextRun SCXW26782667 BCX0\\\"> the average number of days it takes to collect payments. They also assess the ageing schedule of receivables to <\\\/span><span class=\\\"NormalTextRun SCXW26782667 BCX0\\\">identify<\\\/span><span class=\\\"NormalTextRun SCXW26782667 BCX0\\\"> overdue accounts and <\\\/span><span class=\\\"NormalTextRun SCXW26782667 BCX0\\\">monitor<\\\/span><span class=\\\"NormalTextRun SCXW26782667 BCX0\\\"> collection rates against credit terms. For better understanding on how to set up an ageing report<\\\/span><span class=\\\"NormalTextRun SCXW26782667 BCX0\\\">, check out our blog: <\\\/span><\\\/span><span class=\\\"TextRun SCXW26782667 BCX0\\\" lang=\\\"EN-US\\\" xml:lang=\\\"EN-US\\\" data-contrast=\\\"none\\\"><span class=\\\"NormalTextRun SCXW26782667 BCX0\\\">Past Due Account Receivables| AR Aging Report<\\\/span><\\\/span><span class=\\\"EOP SCXW26782667 BCX0\\\" data-ccp-props=\\\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}\\\">\\u00a0<\\\/span><\\\/p><div id=\\\"eJOY__extension_root\\\" class=\\\"eJOY__extension_root_class\\\">\\u00a0<\\\/div>\"}},{\"@type\":\"Question\",\"name\":\"How to improve average collection period?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"<p>To facilitate faster collection of receivables and improve the average collection period involves several strategic actions.\\u00a0<\\\/p><ul><li>establish clear credit policies and terms for customers to ensure they understand payment expectations.\\u00a0<\\\/li><li>Regularly review accounts receivable to identify overdue invoices and follow up promptly with reminders.\\u00a0<\\\/li><li>Offering discounts for early payments can incentivize customers to settle their debts sooner.<\\\/li><\\\/ul><div id=\\\"eJOY__extension_root\\\" class=\\\"eJOY__extension_root_class\\\">\\u00a0<\\\/div>\"}}]}<\/script>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Success of any business, relying on the right management of your financial aspects. Facilitating investment funds or bank loans has been easier than before, but it doesn\u2019t last for long, the right way of managing your cash flow is the vital key role to maximize the benefits of your cash.\u00a0\u00a0 This is the other half of the formula, but the first part is how you get all your earned cashflow[&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":7701,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"rank_math_lock_modified_date":false,"_joinchat":[],"footnotes":""},"categories":[210],"tags":[],"class_list":["post-7698","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-aw-receivable-management-service"],"acf":[],"jetpack_featured_media_url":"https:\/\/alwadiholding.com\/aw-qatar\/wp-content\/uploads\/sites\/10\/2024\/09\/Website-Blogs-pics-1-2-4.webp","_links":{"self":[{"href":"https:\/\/alwadiholding.com\/aw-qatar\/wp-json\/wp\/v2\/posts\/7698"}],"collection":[{"href":"https:\/\/alwadiholding.com\/aw-qatar\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alwadiholding.com\/aw-qatar\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alwadiholding.com\/aw-qatar\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/alwadiholding.com\/aw-qatar\/wp-json\/wp\/v2\/comments?post=7698"}],"version-history":[{"count":106,"href":"https:\/\/alwadiholding.com\/aw-qatar\/wp-json\/wp\/v2\/posts\/7698\/revisions"}],"predecessor-version":[{"id":7985,"href":"https:\/\/alwadiholding.com\/aw-qatar\/wp-json\/wp\/v2\/posts\/7698\/revisions\/7985"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alwadiholding.com\/aw-qatar\/wp-json\/wp\/v2\/media\/7701"}],"wp:attachment":[{"href":"https:\/\/alwadiholding.com\/aw-qatar\/wp-json\/wp\/v2\/media?parent=7698"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alwadiholding.com\/aw-qatar\/wp-json\/wp\/v2\/categories?post=7698"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alwadiholding.com\/aw-qatar\/wp-json\/wp\/v2\/tags?post=7698"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}