What should a company do to improve its accounts receivable turnover rate?

Question

Quizplus · Accepted Answer

Giving customers more time to pay with the 2/10, n/30 credit terms will likely incentivize them to pay quicker to take advantage of the discount, leading to a shorter collection period and an improved accounts receivable turnover rate. Lowering selling prices or increasing the sales force may increase sales but may also lead to a longer collection period and a lower turnover rate. Reducing the number of employees in the credit department may lead to inefficiencies and errors in the collection process.

What Should a Company Do to Improve Its Accounts Receivable