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There are four Accounts Receivable Follow-Up Procedures that every business should implement to expedite collections of past due accounts receivable: Ask for the money. Set up a process and follow it. Put delinquent accounts on credit hold. Use third party collectors sooner.

The 10-Step Accounts Receivable Process Develop a Credit Application Process. Create a Collection Plan. Compliance with Consumer Credit Laws. Send Out Invoices. Choose an Accounts Receivable Management System. Track the Collection Process. Log All Charges and Expenses in Real-time. Incentivize Early Payment Discounts.

Average accounts receivable is calculated as the sum of starting and ending receivables over a set period of time (generally monthly, quarterly or annually), divided by two.

Accounts Receivable Requirements: Excellent communication, research, problem-solving, and time management skills. High level of accuracy, efficiency, and accountability. Attention to detail. Ability to build relationships with clients and internal departments.

Report receivables at the net amount expected to be collected, after allowances for uncollectibles. The amount of the allowance can be presented on the balance sheet parenthetically, as a separate entry deducted from the receivables or in the notes to the financial statements.

How to process accounts receivable Step 1: Develop a credit approval process for your customers. Be sure to develop a credit approval process for your business. ... Step 2: Create an invoice for your customers. Invoicing is important. ... Step 3: Track accounts receivable balances. ... Step 4: Post payments.