Accounts receivable

In practice

Every invoice issued on credit becomes a receivable until it's paid. The total is an asset on the balance sheet, but it isn't cash — and receivables past their due date become overdue debt, which ties up working capital and carries the risk of never being paid.

Why sales teams should care

Reps are often the people with the best relationship with the customer's buyer — and the last to know an invoice is overdue. A rep who knows the balance before a visit can raise it gently, or at least isn't caught out when the client raises it first. Collecting sooner is also often the quickest cash improvement available.

What to track

• The total overdue, and how it moves week to week.
• The largest debtors, with days overdue.
• The ageing: how much is 1–30, 31–60 and 60+ days late.

Where emily fits

Ask emily who owes what, and she answers from your ERP; with Cegid PHC she also flags overdue debt on her own and drafts payment reminders for your approval. See collections and overdue invoices and emily for finance.