- It provides a structured approach to risk management and debt collection process
- It provides a standard rules for everyone in the organization to follow/practice
- It helps ensue a consistence approach among customers and reduces a chance of personal bias which affect the decision making process
- It can be reviewed/modify by top management to adopt with new business requirement
Account Receivables Management refers to the set of policies, procedures, and practices employed by a company with respect to managing sales offered on credit. It encompasses the evaluation of client credit worthiness and risk, establishing sales terms and credit policies, and designing an appropriate receivables collection process.