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Deciding to extend credit to customers of your business means you need to be organized. This entails setting up an Accounts Receivable (A/R) system and consistently following all the policies and procedures established to make the system work. This is essential if you want to avoid the disappointing experience of making a sale only to find out later that you are not going to receive compensation. For sure, there are going to be customers who flake out on their obligation to pay. However, equally certain is the fact that if you don't follow up in a timely manner with your outstanding A/R customers, you can expect to have many more uncollectible sales than you should have.
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