Inefficiencies in your accounts receivable functions can dramatically impact your business.
Three problems that seem to be the most common are short-pays, payment beyond terms and companies failing to pay because of economic difficulties. All three can become significant difficulties in a very short time.
The longer an account goes outstanding, the lower your success rate of collecting on the funds. In both scenarios - collecting the money late or not at all - it is going to restrict your cash flow for expenditures.