Measure for Success

Accounts receivable is the money owed by a given enterprise by its debtors and the customers. These funds play a significant role in the running of the activities in the company hence ensuring success. The financial manager can work together with the administrator for capital investment plan, to reduce the days in accounts receivable to ensure success in business. This aspect can be done through ways such as electrifying and automating the methods of payment and the implementation of reduced terms of received. After successful financial performance basing on the profitability of the firm, there is the need to offer bonus payment to the employees to motivate them (Weitzman & Kruse, n.d). This aspect needs the setting of measures to use in control the plan such as based on profit sharing and the targeting on the leading performance indicators. There is the need for setting up some steps for success in the business because they ensure efficient running and the achievement of the set goals of the company.

The financial manager and the administrator for capital investment can reduce the days in accounts receivable through automating the methods of payment. This aspect is through setting up of a software system program for the receivable process. The software will help in the documentation of invoices and emails to the customers and the debtors in due time. Moreover, it will provide reminders to them for their delinquent accounts. Another method to reduce the receivable days can be through the reduction of the payment terms. These terms allow the company to specify the payment period as at the receipt. It is also efficient when the invoicing process is through the email (Rothberg, 2012). Moreover, this term will motivate the customers to participate in the payments within the specified period to avoid consequences hence allows the company to receive accounts faster and ensure sufficient cash flow.

Some measures can be set to control the issuing of bonuses to the employees after a successful financial performance such as the profit sharing. This action ensures the rewards provided to the employees as generated from the profit earned. The bonus distribution is through the pre-determined formula from the profit accumulated from a given period. This measure is efficient as it bases on the performance of the company and profitability. The use of this measure will motivate the employees to work efficiently to improve the amount of profit generated by the firm which will increase their amount of bonus paid. This aspect will hence lead to success in business. The company can also apply the measure of targeting the key performance indicators. This issue means that the receiving of the bonus will base on the participation in the improvements in profits realized by the company. It can narrow to a specific department or an individual. This measure will involve the company in allocating indicators that will gauge the performance of each employee in each area.

In conclusion, the financial manager and the administrator for capital investment can reduce the period of account received through automating the payment process which will enhance invoicing the customers and sending emails for a reminder for unpaid accounts. They can also reduce the terms of payment. This aspect will affect the period taken before issuing the payment. As the company realizes satisfactory performance in profit, it provides bonuses to the employees. There are measures taken when releasing this premium. This measure can be through profit sharing where the employees share the amount of profit generated by the company. Targeting the key performance indicators is another measure used in the issuing of bonuses to the employees.


Rothberg, A. (2012). Accelerate Collection of Your Accounts Receivable. Retrieved from //

Weitzman, M., & Kruse, D. (n.d.). Profit Sharing and Productivity. Retrieved from //

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