A Study on Debtors Management

Assistant Professor M. Nagaraju; K. Subramanyam

A Study on Debtors Management

Author : Assistant Professor M. Nagaraju, K. Subramanyam Journa Name: International Journal of Science, Engineering and Technology Country : India Volume: 12 issue: 3 Year: 2024 Views : 463

Abstract:

Debtors are people or businesses who owe you money. Proper management of your debtors will help you get paid faster and prevent bad debts. Prompt collection of debtors’ accounts will also help you maintain a healthy cash flow. Giving your customer an invoice or bill after they have supplied a product or service is a way of offering credit, since you have to wait for the payment. By giving your customers time to pay for goods or services already delivered, you are making it easier for them to make purchases. This will increase sales, but will reduce the cash flow critical to your business.