Cash collection

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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.


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  4. ^ "Archived copy". Archived from the original on 2011-06-10. Retrieved 2010-04-11.CS1 maint: Archived copy as title (link)

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