Accounting outsourcing companies give expert tips to improve your accounts receivable turnover

1. Accounting Outsourcing Companies Give Expert Tips to Improve Your Accounts Receivable Turnover As a business owner, you must understand that accounts receivables reflect the company's financial status and cannot be neglected at any cost. For long-term business success, accounts receivable (AR) determine whether the cash flow is handled carefully or not. The two critical concerns for every business are vendor relationship management and cash flow. You must have sufficient cash to support your business goals and good accounts turnover ratio to build a strong supplier relationship. Accounting outsourcing companies like Glocal Accounting have a team of accounts specialists ready to offer a high accounting strategic approach for maintaining a healthy accounts receivable turnover of your company. What is AR turnover Ratio? AR turnover ratio means how efficiently your business converts receivables into cash. Formula to calculate AR :

2. AR = Net Credit Sales / Average Accounts Receivable Net credit sales are the total credit sales (measured monthly, quarterly or annually) during the accounting period. Average Accounts Receivable is calculated by adding the accounts receivable amount from the beginning till the end of the period and dividing the result by two. You have to make sure the measurement period should be exact for net credit sales and average accounts receivable. Glocal Accounting uses the best accounting software to eliminate errors from your books and then compares the figures. Five tips to better accounts receivable turnover with Glocal Accounting: 1.Simplify the Billing Structure: Accounting outsourcing companies in USA use fixed billing arrangements to cut down the accounts receivable headaches. Effective balance can be achieved by providing the customer with billing clarity and ensuring you reap uninterrupted payment on time. 2. Timely Invoice with Accuracy: An accurate, timely invoice is the easiest way to improve the cash flow. The late issuance of invoices increases the risk. Glocal Accounting makes sure your company rolls out invoices on time.

3. 3. Follow Up Regularly: Glocal Accounting experts can smoothly streamline your collection process and layout transparent policies for invoice generation. If payments are missed, we can send a gentle reminder to your clients to get it done on time. 4.Reconcile Frequently: Accounting outsourcing companies like Glocal Accounting can simplify the reconciliation of accounting records. We comprehend the consistent reconciliation with accounting records to keep your accounts receivable up to date. Our professional team keeps monitoring AR to ensure proper cash flow in your company. 5.Use Accounting Software: The foremost target of Glocal Accounting is to simplify and speed up the billing process with assured accuracy. Accessing the accounting software permits you to coordinate with the account team. You can access financial data anytime you want. Glocal Accounting experts can help your business achieve a good AR. If you want to know more about our offerings, visit us at: www.glocalas.com