Efficient & rapid cash cycle is very important for every business organization as Cash is considered as life blood of the business. Robust cashflow forecasting & management helps run smooth & un-interrupted business operation.
One of the many challenges in businesses today is managing costs. Though cutting cost is the simplest way to improve the bottom line, it needs to be carefully managed. Reducing certain costs may be advantageous, but indiscriminate cost cutting can lead to poor performance quality and morale.
Accounts receivables is essentially outstanding payments from clients/customers for the services/product provided by you. It is your responsibility to turn this credit into cash within a period of time as accounts receivables plays an important role while calculating your profitability. It also provides a clear indicator of your business’s income and helps in improving your cash flow.