Easily implementable steps in an accounts receivable process
1. Have a proper credit management process
Ensure that each of your customers have an appropriate credit limit based on various risk factors ( size of the company , yearly revenue , industry , online reviews , credit score ,past payment behavior etc ).
After coming up with a credit limit it is also important to track frequently to ensure that the customer’s total open AR is not more than their credit limit.
It’s also important to periodically review the credit limit based on past payment behavior, customer financials , online reviews etc .