Introduction
Company operations are run using cash acquired through accounts receivable collection. Remarkably, accountants can apply information from this article to assist their companies in succeeding during a credit crunch.
Discussion
Practicing accountants can learn about several approaches to achieve effective borrowing and enhance cash collections after reading this article. For instance, practicing accountants can explore the disadvantages of manual cash collections from this article and understand how technology can increase visibility, unlock hidden cash, and improve compliance. The author indicates that if cash collections are automated and best practices leveraged, companies will be able to manage credit crunch (Wimley, 2009). This article can be helpful to practicing accountants planning out their companies’ bad debt reserves.
Accountants are likely to face challenges when quantifying and managing claims, disputes, deductions, and chargebacks. The author emphasizes the need to implement technology and automated systems because they can resolve credit and cash collection disputes (Wimley, 2009). Therefore, practicing accountants can learn how to accomplish credit scoring and segregate collections process’ disputes, which will influence a positive impact. Some accountants may be used to or prefer manual cash management. However, this article can change their perspectives toward technology and enable them to adapt to automated practices. This will result in companies using better and more advanced approaches to address bad debt reserves and collect accounts receivable.
Conclusion
Yes, there are several other unresolved accounting problems that could have been explored in this article. Accountants and other relevant professionals lack IT literacy associated with accounting. This issue has contributed to the poor or failed implementation of technology and systems in accounting departments. Another unresolved issue entails new skill requirements in the accounting profession. The article could have emphasized the importance of accountants advancing their studies to adapt to the ever-changing economic and business processes.
Reference
Wimley, C. J. (2009). Managing during the credit crunch. Business Credit, 111(6), 54–57.