AR or Accounts Receivable is what you are owed for products and services sold but not paid for by the customer. AR is listed on the Balance Statement as a current asset, this includes credit purchases.

The Business Cycle and Financial​ Review End of Expansion: Stop hiring, reduce inventory, move to only pull production, cleanup your accounts with suppliers (AP), cleanup your accounts with customers (AR), allow AR over 60 days to settle.

At the Peak: Shift your focus to reducing costs from the expansion, large increases in revenue makes you sloppy.

Start of Contraction: Create a strategy to hold your best accounts, gain their help in improving your offer and reduce prices as a reward, factor AR over 45 days.

At Midpoint: Start work on improving current offer or development of new products / services.

End of Contraction: Increase relationships with existing and lost accounts to announce new offer and prepare marketing collateral.

Topics: Best Practices for Accounts Receivable What Should You Measure? Alternative Financing for Late Accounts