Examine The Five (5) Steps To Managing Accounts Re

Examine the five (5) steps to managing accounts receivable. Speculate on the step that is most vulnerable to fraud. Suggest at least two (2) actions that a company can take in order to protect this step from fraud.Receivables are cash flowing into the business. Small businesses must maintain a balance between the receivables and payables to ensure that the operations of the business run smoothly. The first step towards managing receivable is to develop a policy that determines when the customers pay for the goods or services (Salek, 2005). The right policy enables the company to predict its cash flow situation. The next step is to communicate the policy to the customers before starting the business. The following step would be to automate the process of determining your receivables. Fourth, contact a company to collect your receivables. This is more effective than when the business does it by itself. Finally, simplify the payment process by acquiring software that allows for electronic payment. Among the five steps, the step that is more vulnerable to fraud is the third step. Many frauds nowadays are committed through computer systems due to the ease of clearing the evidence. However, a start-up company can control