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Accounts Receivable Letter Sample- How to Write an Accounts Receivable Letter.
An accounts receivable letter, also known as trade receivables, is the money owed by customers in exchange for goods and services provided by a company. On a balance sheet, account receivables are recorded as assets because it means a customer is obligated to pay for their debts. It is not only limited to businesses, but individuals can also have them. An example is a paycheck given by an employer. Account receivable is a vital factor in a company’s working capital. If too high, there are tendencies for a company to get lazy in collecting them and hence, struggle in paying bills in the long run. On the other hand, if it’s too low, it could mean that the company is not sufficient enough in offering good payment terms or even unnecessarily damaging their customer relationships. Additionally, it can be documented with the use of an invoice in which you are liable for issuing to a customer after going through the billing procedure.
Writing letters, reports, notes, among other things, are important skills for business and personal life. Good letters will yield nothing but good results. Most often than not, people assess others by the quality of their writing, hence it’s essential to write well. Here are some simple tips in writing an account receivable letter to get you started:
• Use short sentences. Sentences that contains more than fifteen words could lessen the clarity of what you’re trying to convey. After drafting it, seek out commas and make full use of pauses in between long sentences, and replace with full-stops. Avoid using technical terms unless it is necessary.
• The working contents should clearly be outlined in the type of communication used.
• It’s a rule of thumb not to write an account receivable or other forms of formal letters. However, you may send a short handwritten note on a printed slip of paper in place of a letter. It’s better to use the left-justified alignment in your letter as its makes your content easier on the eyes.
Having a good business letter format or letter template as a guide can be very helpful. Download a free accounts receivable letter sample, then edit to suit your needs. It’s a great way to get you started in the right direction.