Accounts receivable is a term that can have many meanings but in the accounting world, it refers to money owed to your company by its customers. Continue reading to learn about some of the methods used in managing accounts receivable, including best practices and tips on how to use them in this article.
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What are accounts arrears?
If you're like most people, you probably don't know what "accounts arrears" are. Accounts arrears occur when you (or your company) owe money to someone else but have not yet paid them. This can happen for a variety of reasons, but most often it's because you've missed a payment or made a late payment.
How to manage accounts arrears?
If you're struggling to keep up with your accounts, it's important to take action as soon as possible. Here are some tips on how to manage an accounts arrears:
1. Get in touch with your creditors
The first step is to get in touch with your creditors and explain your situation. They may be able to offer you alternative repayment options or a payment plan.
2. Create a budget
Creating a budget will help you to better understand your financial situation and see where you can make cuts or changes. This will also allow you to prioritize your debts and make sure you're making the required payments.
3. Seek free debt advice
There are plenty of free debt advice services available, such as Citizens Advice or National Debtline. These organizations can provide you with practical help and support in managing your debts.
Conclusion
Remember, being proactive is the key to managing your finances successfully. So don't wait until things get out of control – start taking steps to stay on top of your accounts today.