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MPS Talks Episode 1: Keeping a Healthy AR

What should my A/R balance look like? Why are we not collecting all our A/R? Typically, when speaking with a client, these are the most common questions I’m asked. You should be getting an A/R balance sheet that shows your monthly A/R and what it looks like at least once a month. Whenever you look at your accounts receivable, you are typically going to be looking at it from an aging perspective. So, 0-30, 31-60, 61-90 days, and so on. Generally, you want 85% of your A/R to be under 90 days. This ensures you have a consistent cash flow and you’re not waiting for the payers to pay you on a…

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