Central Manufacturing

Summary You have advised me that that you argon c at one timerned with gravid losses. A superficial analysis of your accounts receivable readd that a rangy fraction were over 90 days past collect. season you sapidity certain that these accounts leave behind be equanimous eventually, the company has see problems in paying its bills. Analysis The poisonous debt losses ar a ensue of the past due accounts receivable and can tho be rectified once the underlying problem with the charm of accounts receivable is resolved. The difficulty in paying bills is a result of the cash flow paucity which can similarly be resolved by neutering the underlying problem; the crop of battle of accounts receivable. There are several possibilities as to the cause of the underlying problem, and entirely a thorough investigation of each possibility allow for shape the cause and lead to the best possible solution. It is also self-asserting to keep in mind your companys key success f actors when determine the contributing factors to ensure that nothing is overlooked. The following are possible contributing factors and methods that should be used to investigate them. 1. quotation Policy. If the office polity is too lax or if move are not being taken to check the consultation honor of potential clients, the company could be extending book of facts to regretful clients. This waste lending will obviously create potential array problems and could lead to an increase in bad debts as a result. A review of the current credit policy and step taken to evaluate the credit rating of clients will indicate whether improvements are needed in this area. 2. Sales. Incentives based on union billings or number of new accounts could push gross sales staff to sell to clients who may be less than credit worthy. The sales staff also needs to be cognizant of the production process... If you want to get a full essay, set it on our website: BestEssayCheap.com

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