Interaction of Accounts Receivable and Accounts Payable and Managing Them

Abstract

The ability to enter into credit and receivable relationships helps develop business and the economy as a whole. For the company, this is a chance to increase production capacity and increase sales. Accounts receivable is the debt of counterparties to your company. It can be recovered in court, since according to all accounting rules, receivables must be reflected in accounting and recorded in the contract. This article discusses issues about the ratio of accounts receivable and accounts payable, sources of their formation, how to overcome problems and how to keep records and manage these indicators.