LearningCat: Bills Ageing
Best Practices for Reducing Payable Aging
In India, impactful cash flow management is important because nearly 60% of Indian SME’s face liquidity concerns because of postponed payments. A study by CRISIL disclosed that Indian companies took an average of 67 days to clear supplier invoices. Managing accounts payable aging is mandatory to enhance financial health. What is Accounts Payable Aging? Accounts […]
The Use of Technology and Automation in Bills Aging
In today’s competitive business environment, a company’s ability to manage its accounts receivable is crucial. Everything begins to fall apart if you don’t maintain the flow of money. Bills aging, a system that groups past-due invoices according to the length of time they have been past due, is one of the finest methods to keep […]
Understanding the Income Statement and Its Impact on Financial Statements
The income statement, often called the profit and loss statement, is a key financial document for any business. It summarizes how much money a company brings in (revenues), how much it spends (expenses), and what’s left over (profits) over a specific time period. In India, knowing how income statements affect overall financial reporting is crucial […]
How Accounts Receivables are Classified on the Balance Sheet
Accounts receivable (AR) represents money that is due to a company by its customers for goods or services supplied but still unpaid. An appropriate classification of AR is important for understanding financial reporting. As per the Companies Act (2013), Schedule III offers a format for the demonstration of financial statements, consisting of classification of receivables. […]
Best Practices for Reducing Receivables Ageing
Managing accounts receivable (AR) is one of the vital aspects for any business. The unpaid invoices can mess up the cash flow and lead to more financial troubles. So, the question arises for a business about how to keep these receivables from aging. This guide provides straightforward strategies for the business for faster collection of […]
Mastering Customer Communication for Managing Aged Receivables
When customers owe you money, how you communicate with them can make or break your business. It’s not just about chasing down cash; it’s about getting paid without destroying the relationship. You don’t want to seem desperate, but you also can’t sit back and hope they pay up. You need to handle aged receivables with […]
Legal Actions for Delaying Payment
In the modern business world, the competition rate in companies is very high, and managing the relationship between buyer and seller has also become difficult. But this relationship is very crucial from the business point of view. The understanding of the buyer and admirable performance by the seller can build the trust that plays a […]
Strategies for Collecting Overdue Receivables
Chasing overdue payments is a crucial part of running a business. If cash isn’t flowing, things can go downhill fast. But collecting what’s owed doesn’t have to be a headache if you know what you’re doing. Here’s a rundown of strategies to help you get those unpaid invoices in line and keep customer relationships intact. […]
How to Negotiate with Vendors
Vendor negotiation is all about getting the most out of your business relationships without burning bridges. Whether you’re trying to lower costs, improve terms, or just build a long-term partnership, knowing how to negotiate with vendors is a game-changer. So, let’s dive into what vendor negotiation really means, the skills you need to crush it, […]
Prioritizing Payments in India
The management of payments in any business is not limited to the payment of invoices. It is a method. Whether a business remains solvent or falls into debt can be determined by the prioritization of which payments to make, when, and why. In India, the ability to prioritize payments is essential due to the country’s […]
Account Receivable Aging Report: Meaning, Importance and Its use
Running a business means keeping track of various financial numbers to stay stable and avoid chaos. One of the key things to manage is accounts receivable, especially for businesses offering credit to clients. This is where the Accounts Receivable (AR) Aging Report steps in, acting like a financial watchdog to keep your cash flow in […]
The Impact of Bill Ageing on Cash Flow and Working Capital
Any business’s lifeblood is its cash flow. Even a successful business might run into problems if money isn’t coming in and going out. And one major element that might interfere with cash flow is the aging of bills. Knowing how bill aging affects your cash flow and working capital is crucial, regardless of whether you […]
How to Create an AR Aging Report for Accounts Receivable
Cash flow is king. If you don’t know where your money’s stuck, you’re in trouble. That’s where an Accounts Receivable (AR) Aging Report comes in. Especially in India, where payment terms can be wild—sometimes you’re waiting 30 days, sometimes 90 days, maybe even 120 if you’re dealing with big corporations or government contracts. Keeping track […]
Breaking Down Bill Aging in Accounts Receivable
Getting paid on time can make or break a business. But let’s face it, payments get delayed all the time, whether it’s because clients are slow, their systems are messy, or they just don’t care. This is where bill aging in accounts receivable comes in. It’s the system that tells you how long invoices have […]
How to Analyze an Accounts Receivables Aging Report: Step by Step guide
An Accounts Receivables (AR) Aging Report is one of those key financial tools that businesses can’t ignore. It shows the status of invoices a company hasn’t yet collected from customers. If you want to keep your cash flow healthy and spot trouble with late payments early, knowing how to read and analyze this report is […]