In running a business, of course we know that in order for the company to run smoothly the company’s cash flow is an important factor. One of the factors that affect the company’s cash flow is Account Receivable. Basically Account Receivables arise as a result of the buying and selling process that occurs in the company.
In other words, Account Receivable is a transaction record on which the company receives money from customers. In the sales marketing process, when we make a sales order, Account Receivables will not be recorded. Accounts Receivable will only be recorded when the customer has purchased by DO or even directly paid for everything in advance.
To manage a company’s Account Receivable, usually a special division is formed to handle and manage matters related to the company’s Account Receivable.
One of the positions formed was the account receivable staff. This division position plays an important role in the company. The main task of the account receivable staff is to handle the process of receiving company money so that it is controlled and in accordance with the plans that have been made by the company.
There are three main characteristics that exist in company receivables, including:
- Maturity Value Maturity
- Date
- Age Maturity
The task of an account receivable staff is as follows:
Record all sales transactions and check
All sales transactions should be recorded and archived with tidy by a receivable account so that when needed, they can easily prepare it. Recording must be done carefully in order to reduce the occurrence of errors.
In handling this task, accuracy and patience is needed because account receivable staff is expected to be able to properly analyze how the billing and receipt process is owned by the company from start to finish and can make conclusions from performance and provide development suggestions for the company’s future progress.
Update cash flow and accounts receivable
In addition to performing the billing and assignments above, you must also estimate the company’s cash flow by looking at the balance between the billing amounts from successful and delinquent clients. Regarding the estimated update time, usually each company has different policies.
Dealing with troubles
receivables receivables must be managed because they are still part of the company’s assets even though their current status is problematic. If it is taken seriously, it is possible to finish it even though it is not one hundred percent.
Read more: The importance of collection officer in payment collection
AR reconciliation and field audits
An account receivable staff is expected to be able to make actual data adjustments (reconciliations) with data in the general ledger and ensure the company’s billing balance (AR balance). If it is urgent, an account receivable may conduct a field audit to check the accuracy of invoices, collect and so on.
Checking and being responsible for the credit limit.
Not infrequently the salesmen cannot remember the credit limit of each customer. This is where an account receivable plays a role. In addition, an account receivable must also be responsible for company credit invoices and must keep and maintain them properly.
Following are the responsibilities that must be carried out by an Account Receivable, are as follows:
- Ensure that the checking and analysis of debtors’ monthly bills is carried out properly and ensures that the client’s monthly billing data allocation is available for further processing
- Ensure that AR balance data is available and reconciled (equated) with the data field and ensure the availability of customer billing lists.
- Ensure that clients who are listed in the bill are billed according to the applicable agreement.
- Ensure the terms and conditions of financial agreements with clients are carried out properly.
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