Costs in Extending Credit:
Do you know what are the costs in extending credit? Well, let’s hope that your answers include the following:
- Cost of capital tied up in debtors,
- Cash discounts,
- Staffing costs of sales, ledger administration,
- Expenses on printing, stationery, postage, space, equipment, etc.
- Debt recovery costs, e.g. legal, credit insurance and debt collection agencies,
- Bad debts.
Continue reading Credit Management: Costs in Extending Credit & ROI on Receivables
FCCA,CA(MIA)with more than 26 years of post-qualifying working experiences. Previous working stints with one of the big accounting four, Regional GFC & Group Treasurer in a group of Malaysian and Group CFO in Singapore public listed concern.
Also author to another very popular free educational accounting cum finance blog: http://basiccollegeaccounting.com under the branding of College Accounting Coach.
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