Accounting Services - Credit Management and Accounts Receivable

Credit management concerns the accounts receivable section of a business' balance sheet.

Accounts receivable, also known as trade debtors, are the amounts owed to an entity by its clients. An account receivable comes about when goods or services are sold to clients on the basis of credit. Under the credit system, a client is given a certain time frame in which the account has to be paid.

Accounts receivable represent a current asset in the balance sheet, as they signify the future right to receive cash, and are a central asset to any business. If the receipt of accounts receivable are not handled efficiently and accurately, problems such as profit declines and cash flow shortages can arise. Some controls which you may put in place over accounts receivable include:

• Establish collection and credit policies in writing.

• Complete credit checks on all new prospective clients applying for credit.

• Frequently age your accounts, and get an independent examination of the report.

• Go over the credit transactions and write-off bad debts.

• Put in a place a thorough policy for the following-up of accounts that are overdue.

• Settle trial balances with general ledger accounts.  

If you have any queries regarding credit management advice for your business or any other bookkeeping or accounting matters in general,  please do not hesitate to contact us now by submitting an online enquiry form or call 1300 QUINNS or on +61 2 9223 9166.

Back to Business Accounting Services

The Quinn Group - Providing the Total Solution

As both a legal and accounting firm The Quinn Group are able to offer business legal and accounting services in one location. Visit our Business Legal Services page to see our range of legal services available to your business.

Visit our Personal Accounting Services page for more information on the wide range of Accounting Services that The Quinn Group can provide to you as an individual.

View all our office locations to find The Quinn Group office nearest you, or call us on

1300 QUINNS (1300 784 667) or on +61 2 9223 9166 to arrange an appointment.

Whilst we have 5 offices located in Sydney, we are also able to meet you at location convenient for you. Additionally, we have web and teleconferencing available for regional, interstate or international clients.