Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

While every business likes to make sales, sales on account are only as good as the cash that will eventually come when the customer pays her balance. As such, small-business owners often need to ...

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, ...

As a business owner, you know that accounts receivable (AR) is money owed to a business by its customers. When you extend credit to a customer for the purchase of goods or services, the balance owed ...

The Average Collection Period (ACP) is a financial ratio that calculates the average number of days it takes for a company to collect the money owed to it by its customers (its accounts receivable).

One of the most basic business functions is managing money coming into the company as a result of sales activity. The company must set up accounts for customers to structure payments and address the ...