Factoring is selling your company's accounts receivable invoices at a discount to a third party for immediate cash.

A Credit Manager works within an accounting department to help determine the credit risk and credit-worthiness of clients.

An accounts receivable department (A/R) may divide responsibilities among the team to include credit managers, credit analysts, clerks, and collections specialists. This division of tasks helps accounts receivable management to be as efficient and productive as possible.

B2B is a term used for marketing or sales activities between two businesses. Alternatively, B2C defines activity between a business and a consumer. 

Aging report refers to a list of credit or accounts receivable invoices that remain outstanding. 
 

Accounts Receivable Turnover Ratio is a measurement of a company's effectiveness of its credit policies and its collections of accounts receivable.

Calculating your business' accounts receivable turnover is one of the most telling year-end accounting best practices. This ratio will offer a huge clue about your business successes and near-misses in extending business credit and collecting on what's owed. The value of this number will help determine weaknesses in your accounts receivable processes so improvements can be made. 

Read on to learn more about A/R turnover, how to calculate the ratio, and what procedures can help increase accounts receivable turnover ratio.

As 2017 comes to a close, we find ourselves in the thick of the holidays. We may be wrapping up year end accounting, buying last minute gifts for clients or hoping the boss remembers to say thank you to the accounting department.  Either way, we're counting just a few more working days before the holiday weekend.  In the spirit of giving back, we're offering the top 10 most popular business and accounting blog posts of 2017. 

While accounting may not appear as glamorous as, perhaps, your sales department, they shouldn't be taken for granted. They're likely working hard to close out the end of the year, keeping away IRS audits as well as ensuring that you have enough money to pay employees, vendors, and overhead. If you haven't already, you might offer some appreciation during the holidays. 

Here are the best holiday gift ideas for your accounting department.

When building out contracts or proposals for clients, the simplest option is to create a standard agreement and use it every time. Each of your clients, however, may require a different financial arrangement. Your written contract is a binding agreement for services and payment and will protect your business. If every client paid on time, one set standard of payment terms would work fine. Unfortunately, not all clients pay in that timely manner. 

Here's what to consider when establishing your B2B contract payment terms:

The holidays may put a strain on you as an individual but end-of-year accounts receivable follow-up could put a strain on your business. It can be challenging to review overdue invoices and the potential of bad debt write offs and stay in the giving spirit. If cash flow is strained, a business owner may feel resentful of those clients who still owe on invoices. Treating your clients well, however, is necessary for retaining those relationships. B2B sales cycles take longer so your clients are important, even when their invoices are unpaid.

Here are 5 best practices for treating your clients well during the holidays, even when they owe you money.