Balancing expenses with the available funds a company has from its operations is normally handled by Accounting and Finance departments, who do the pencil-pushing and spreadsheets for proper monitoring. Money is the bloodstream of any company, and this will be in the form of cash and accounts receivables. Managing these current assets is not as easy as it seems, since most of the time, a company will have a hard time how to handle them. Receivables for instance may get to a point where they can not be collected and legal intervention at times for clients that do not pay or religiously take such issues seriously.
Managing cash and the accounts receivable of any organization is a very big responsibility. Faulty management and taken for granted procedures will spell big trouble for any company, and this is something that most organizations would rather not experience. Most companies today find themselves in the red, another term for losses in the business world, mostly because of mismanagement and unforeseen circumstances that will bear meaning at some point of the corporate existence. The larger and stable companies of today have invested so much as far as manpower and knowledge, not to mention systemization for most to be able to efficiently monitor such. Any company would want to see profits, but to do so, they should start auditing internal procedures above anything else.Â
Taking the Accounts Receivable PlungeÂ by Darrel Zahorsky
The Ten Essential Requirements for Asset Management by Michael Levy
Originally posted on August 9, 2006 @ 12:03 am