However, the trial does not guarantee payment. If the debtor company goes bankrupt, it will be impossible to collect the debt from it. Include possible expenses in the company's budget. If part of the receivables becomes uncollectible, i.e. unpaid, or the creditor has to start legal proceedings with the counterparty, the company will lose money.
in advance so as not to take them from working capital. netherlands telegram mobile phone number list Calculate the turnover ratio. This is an indicator that allows you to understand how effectively a business manages the receipt of receivables for a certain period. The coefficient can be calculated, for example, for a year or a quarter.
Depending on the industry and the specifics of the company's work, the result may be different - there are no generally accepted values. Turnover is calculated using the formula: Revenue for the billing period ÷ Average balance of accounts receivable The higher the turnover ratio, the more effectively the organization has organized the process of receiving payments from counterparties.