Question

List three reasons why it is a good idea to follow up outstanding accounts within designated timelines. Discuss in 120–150 words.

Answer 1

Reasons because of which it is a good idea to follow up outstanding accounts within designated time lines are:

1. To make a better credit policy for periods (for payments) - a good credit credit policy is always desirable for any firm which allows the firm to make use of its funds more efficiently.
2. To effectively forward the better credit policy to customers - it helps in acquiring new customers and in retaining the existing customers as well.
3. In following client or customers for credit/payments according to policy - this is beneficial to both customers and to firm.

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