Calculating an accounts receivable turnover ratio offers insight into how well a business handles the collection of its receivables. By using an AR turnover formula, businesses can determine the ...

Some companies find that offering incentives to credit customers can help encourage early payments, increasing cash flow and reducing the risk of bad debt. A sales discount is one incentive that many ...

In accrual accounting, determining exactly how a company generates or burns its cash is not as straightforward as you may expect. Because of the way companies must record their accounts payable and ...

Greg DePersio has 13+ years of professional experience in sales and SEO and 3+ years as a writer and editor. Dr. JeFreda R. Brown is a financial consultant, Certified Financial Education Instructor, ...

Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Somer G. Anderson is CPA, doctor of accounting, and an accounting and finance ...