This business administration course draws on accounting principles to help you understand the concept of accounts receivable (AR). It starts with explanations of the importance of accounts receivable management. We go through the terminology used in accounts receivable, the accounts receivable process flow and its significance to working capital management. Credit policies and procedures are essential for any business hoping to manage its cash flow and reduce the risk of bad debt. The course explains how to establish credit policies and emphasises the importance of continuous credit evaluation, credit assessment and risk analysis.