01/29/2024

Four Tips to Help Merchants Best Manage Accounts Receivable

Invoicing is a tedious process followed by "hurry up and wait"

For businesses, what’s in their cash account isn’t quite the whole picture. That is where accounts payable (amount owed to service providers) and accounts receivable (amount awaiting a client payment) come in.

What money is owed versus what money is being received can make a business profitable or in the red. That is why it is very important for merchants to manage their accounts receivable to ensure they are healthy and thriving.

If a merchant billed their vendors every hour, day or week, invoicing would become tedious and time consuming for both buyers and suppliers. Instead, merchants typically invoice on a monthly basis and expect payment within 60 days. This billing action represents the value of a month’s worth of work and is best managed on a consistent and routine basis.

Please select this link to read the complete blog post from OSAP member i3 Commerce Technology.