Rising business receivables can be a sign of a growing, prosperous company – or of troubles ahead. How can you know if your receivables are right-sized for your business?
Start by breaking down the numbers. A report of your receivables listed by age will give you the information you need. Track the percentage of invoices paid late and compare the information to that of past years. Benchmark your statistics with those of your industry peers and look at the amount of unapplied or unreconciled customer payments.
Do you notice an issue wi