Our last post on the workflow for a Cash Applications process was viewed by a whole lot of readers, I presume, people really found it valuable. Here is the link for the same.
While I was writing on Cash Applications, I received multiple requests from various readers, who wanted to have a high level overview of accounts receivable processes. Though I had given an overview in the first post in this series, I will cover this in a little more detail.
The accounts receivable processes are a function of the sales side of a business entity. This applies to both manufacturing / trading and service organizations as well. Any business entity will always have two ends to its working, one the receipt of goods / services on which they would work to add their value by converting these into products and services demanded by various consumers / clients / customers. This is basic to the fundamentals of business and economy. On the customer / client side, as the products / services get ready for delivery to the customer / client, a sale of these will emanate. As a process it could be as simple as a direct sale to a customer or may comprise of a number of pieces, which form the width of the accounts receivable function.
As the organizations grow larger, each function starts becoming an authority in itself.
I will continue this in the next post.
We have enabled a button on the top of the first page, which will enable you share your posts. If you wish to write about any of the current streams, you can do it at http://faoblog.com/guest-post/. We will review your post and release it within 48 hours of your posting.