Accounts Receivable Policy
Subscriber Content

This tool contains two sample policies that establish procedures to ensure consistency in a company’s accounting treatment of receivables. This includes guidelines focused on how and when to reserve a receivable, write off a receivable and recover a receivable. Accounting is responsible for maintaining accurate records within the accounts receivable function and ensure that proper internal controls are maintained.
In these samples, the company’s philosophy of receivable management is predicated on the presumption that the overall credit quality of the company’s customer base is good and the likelihood of bad debts is minimal.