Cash collection
Cash collection is a function of[clarify] Accounts receivable.[1][2] It is the recovery of cash from a business or individual with which you have issued an Invoice.
Unpaid invoices are considered outstanding.
Invoices are always issued with terms of payment.[3] These terms vary widely from 'Cash terms', meaning that the invoice is due immediately[citation needed], to many forms of 'Credit terms' (for example 30 days from date of invoice[4]).
Invoices which remain unpaid for periods longer than their 'terms' indicate are considered overdue.
It is the aim of the Cash collection function of a business to collect Monies for all outstanding invoices before they become overdue and to mediate payment arrangements to ensure that invoiced debts do not become doubtful or bad.
References
- ^ http://www.gov.ns.ca/treasuryboard/manuals/PDF/200/21101-03.pdf
- ^ http://www.colorado.gov/dpa/dfp/sco/acct_rec/ar_rule.pdf
- ^ http://www.businesslink.gov.uk/bdotg/action/detail?r.s=sc&r.l1=1073858790&r.lc=en&r.l3=1073965654&r.l2=1084596842&r.i=1073791760&type=RESOURCES&itemId=1073791761&r.t=RESOURCES
- ^ "Archived copy". Archived from the original on 2011-06-10. Retrieved 2010-04-11.
{{cite web}}: CS1 maint: archived copy as title (link)
See also
External links
