One technique to provide better control over credit and collections of receivables is to have those functions managed by the accounting department instead of the sales department.

Question

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By having the credit and collections functions managed by the accounting department, it can help ensure that proper procedures are in place for credit checks, timely invoicing, and follow-up on past due accounts. This can help minimize the risk of bad debt and improve cash flow. In contrast, when these functions are managed by the sales department, there may be a conflict of interest in terms of prioritizing sales over creditworthiness and timely collections.

One Technique to Provide Better Control Over Credit and Collections