Question

What are the advantages and disadvantages of billing/accounts receivable/cash receipts (B/AR/CR) process?

Answer 1

Billing / Accounts Receivable / Cash Receipt is a type of accounting process. That is, interacting between different types of processes by promoting the decision-making capabilities and activities of financial management in the business. There are also controlled plans to handle the activities as follows. And that's the benefit.

Repatriation work of reputable departments, accounts receivable and cashiers Managers' decisions support the financial aspects of the business. This involves creating financial reports, both internal and external.

Designs of controls designed for things like people, tools, and information flows, and the methodology for restructuring each department, such as the Credits Department, cashiers, support the process of eliminating financial constraints.

Most companies are aware that billing and cash transaction processes need a high level of management through efficient and systematic management. If business cash is not paid, you can instead use it to get inventory, improve the equipment category, pay employees, and hire new employees in the company.

Disadvantages: Online billing systems are often outsourced in billing. So to avoid this, there is a fee involved with using the outsourced billing system. Also, the cashier's check does not collect the cash receipts registered on a daily basis, but the checks are deposited separately.

Increased spyware on the Internet due to online billing is a major threat to the security of the organization's personal information and may pose a significant risk.

The disadvantages of cash withdrawal are usually seen around sales. This is not wrong if you do not take online money transfer payments. Even if a person has a lot of money to buy, the person does not have enough money to buy. Cash sales also have a large degree of insecurity online. The disadvantages of increasing reputations are increasing the service cost of debt, increasing the time of employees to manage bad credit risk.

The amount and interest on the accounts can be more expensive than other financing. Even if a person has credit, it is not based on his own financial beliefs but on the basis of the customer. So if the customer is not able to pay for a period of time then the rate increases. So, to some extent, customers can add time to their own accounts to get financing.