{"id":27611,"date":"2025-07-03T07:46:39","date_gmt":"2025-07-03T07:46:39","guid":{"rendered":"https:\/\/www.hashmicro.com\/ph\/blog\/?p=27611"},"modified":"2025-11-26T03:00:00","modified_gmt":"2025-11-26T03:00:00","slug":"trade-receivables","status":"publish","type":"post","link":"https:\/\/www.hashmicro.com\/ph\/blog\/trade-receivables\/","title":{"rendered":"Trade Receivables Explained: Formula, Examples, and How to Reduce Them"},"content":{"rendered":"<p><span style=\"font-weight: 400\">Do you often struggle with collecting payments from your customers? Managing trade receivables effectively can be a challenge, especially when balances pile up and delay cash flow. This can disrupt your operations and limit your business growth.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Alam mo ba? Recent data from <\/span><a href=\"https:\/\/www.bsp.gov.ph\/Lists\/Business%20Expectations%20Report\/Attachments\/23\/BES_1qtr2025.pdf\"><span style=\"font-weight: 400\">Bangko Sentral ng Pilipinas<\/span><\/a><span style=\"font-weight: 400\"> reported in early 2025 shows that nearly half of Philippine medium to large enterprises face liquidity issues due to rising financing costs and tighter credit. For example, <\/span><a href=\"https:\/\/www.investing.com\/news\/company-news\/philippine-seven-q1-2025-slides-revenue-grows-despite-negative-samestore-sales-93CH-4061397\"><span style=\"font-weight: 400\">Philippine Seven&#8217;s Q1 2025<\/span><\/a><span style=\"font-weight: 400\"> cash reserves fell over 50% year-over-year, with a negative PHP 2 billion operating cash flow.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Effectively managing trade receivables is essential for maintaining cash flow and reducing financial risks. Businesses should implement strategies to track outstanding payments, monitor overdue invoices, and ensure timely collections. This approach helps optimize working capital and supports overall financial stability.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Gusto mo bang matutunan kung paano mapapabuti ang iyong <\/span>receivables management<span style=\"font-weight: 400\">? Keep reading to discover strategies and best practices to boost your financial operations and maintain a steady cash flow.<\/span><\/p>\n<table style=\"border-collapse: collapse;background-color: #fffacd;border-radius: 25px 25px 25px 25px\" width=\"100%\">\n<tbody>\n<tr>\n<td style=\"padding: 15px;border: none\">\n<h3 style=\"margin-bottom: 10px\"><span style=\"background-color: #990000;color: #ffffff;padding: 5px\"><b>Key Takeaways<\/b><\/span><\/h3>\n<ul>\n<li><a href=\"#1\"><b>Trade receivables<\/b><\/a><span style=\"font-weight: 400\"> are essential in calculating <\/span><b>working capital<\/b><span style=\"font-weight: 400\"> and directly affect a company\u2019s liquidity. Proper management helps optimize cash flow, enabling better operational decisions.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><a href=\"#2\"><span style=\"font-weight: 400\">Efficient management of <\/span><b>trade receivables<\/b><\/a><span style=\"font-weight: 400\"> can improve cash flow and reduce financial risk. This can be achieved through strategies such as invoicing immediately, establishing clear payment terms, and using real-time reporting.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><a href=\"https:\/\/www.hashmicro.com\/ph\/accounting-software\"><b>HashMicro&#8217;s accounting software<\/b><\/a><span style=\"font-weight: 400\"> automates invoicing, integrates payment solutions, and generates real-time reports, helping businesses manage their <\/span><b>trade receivables<\/b><span style=\"font-weight: 400\"> efficiently and improve cash flow.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\"><style>\r\n.button-cta-custom {\r\n    background-color: #8a0e19;\r\n    color: #fff !important;\r\n    -webkit-transition: all .3s ease;\r\n    transition: all .3s ease;\r\n    padding: 8px 24px;\r\n    display: inline-block;\r\n    border-radius: 8px;\r\n    font-size: 16px;\r\n    font-weight: bold;\r\n}\r\n.button-cta-custom:hover{\r\n\tbackground-color:#991b26\t\t\r\n}\r\n<\/style>\r\n<a class=\"button-cta-custom\" href=\"https:\/\/www.hashmicro.com\/ph\/free-product-tour\/?medium=cta-button\" target=\"_blank\">Click Here to Get the Free Demo!<\/a><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400\"><div id=\"toc_group_article\" style=''>\r\n\t<p style='font-size:25px;font-weight:bold; margin-bottom:0px'>\r\n\t\tTable of Contents\r\n\t<\/p>\r\n\t<ul id=\"list_toc\" class='list_toc'><\/ul>\r\n<\/div>\r\n\r\n<div id=\"placeholder-toc\"><\/div>\r\n<div id=\"toc\">\r\n    <div class=\"header\">\r\n\t<span class=\"toc-title\" id=\"toc-title\">Content Lists<\/span>\t\r\n\t <i class=\"toc-icon\">\r\n        <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"30\" height=\"30\" viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"#000\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\" class=\"header-icon\">\r\n          <path d=\"m6 9 6 6 6-6\" \/>\r\n        <\/svg>\r\n      <\/i>\r\n\t<\/div>\r\n    <div class=\"list\">\r\n      <ul id=\"toc-list\"><\/ul>\r\n    <\/div>\r\n <\/div>\r\n\r\n<style>\r\n\/* Simple styling for the TOC *\/\r\n\t\r\n\t#toc ul li:last-child {\r\n    padding-bottom: 16px; \/* Adjust the value as needed *\/\r\n}\r\n\r\n.td-fix-index {\r\n\t transform: unset !important;\r\n     -webkit-transform: unset !important; \r\n}\r\n.footer-contact .td-fix-index {\r\n\t transform: translateZ(0) !important;\r\n     -webkit-transform: translateZ(0) !important; \r\n}\r\n\t.tdb_single_content .tdb-block-inner.td-fix-index{\r\n\t\tposition: static;\r\n\t}\r\n\t\r\n\r\n\t\r\n#toc {\r\n  background-color: #FFF;\r\n\tpadding: 17px 24px 20px 24px !important;\r\n  margin-bottom: 20px;\r\n\/*   border: 1px solid #9C171E; *\/\r\n  border-radius: 6px;\r\n\tdisplay: none;\r\n  max-width: 100%;\r\n  transition: .4s ease height;\r\n\tmargin-left: 0;\r\n\toverflow: hidden;\r\n}\r\n\r\n#toc .header{\r\n  display: flex;\r\n  align-items: center;\r\n  justify-content: space-between;\r\n\tbackground-color: transparent;\r\n}\r\n\t\r\n\t#toc.sticky .header{\r\n\t\tpadding: 4px 0;\r\n\t}\r\n\t\r\n.header p{\r\n  font-size: 18px !important;\r\n  font-weight: 600 !important;\r\n  color: #393939;\r\n   margin-bottom: 0;\r\n  \/* margin-top: 20px; *\/\r\n}\r\n\r\n.toc-icon{\r\n  float: right;\r\n\/*   visibility: hidden; *\/\r\n}\r\n\r\n\t.toc-title{\r\n\t\tmargin-right: auto;\r\n\/* \t\tpadding-left: 20px; *\/\r\n\t\tfont-weight: 600;\r\n\t\talign-self: center;\t}\t\r\n\r\n#toc ul {\r\n  list-style-type: none;\r\n  padding-left: 0;\r\n  padding-top: 20px;\r\n  margin-top: 0px;\r\n}\r\n\t\r\n#toc.sticky ul{\r\n\toverflow-y: auto;\r\n\tmax-height: 250px;\r\n\tmargin-top: 0px;\r\n\tpadding-top: 20px;\r\n\/* \tborder-top: 1px solid #d3d3d3; *\/\r\n}\r\n\t\r\n#toc ul li {\r\n\/*   margin-bottom: 10px; *\/\r\n  margin-bottom: 10px;\r\n\tmargin-left: 0;\r\n\ttransition: .2s ease;\r\n\tcursor: pointer;\r\n}\r\n\t\r\n\t#toc.sticky ul li {\r\n\t  margin-right: 10px;\r\n\t}\r\n\t\r\n.td-post-content #toc-list li a:hover, .td-post-content #toc-list a.active{\r\n\tbackground-color: #FFF;\r\n\/* \tpadding: 8px 16px 8px 16px; *\/\r\n\tpadding: 4px 16px 4px 16px;\r\n\tborder-radius: 6px;\r\n\tcolor: #9c171e !important;\r\n\tfont-weight: 600 !important;\r\n}\r\n\t\r\n\t.td-post-content #toc-list li:hover a, .td-post-content #toc-list a.active{\r\n\t\tcolor: #9C171E !important;\r\n\t\tfont-weight: 600 !important;\r\n\t}\r\n\t\r\n.td-post-content #toc-list a.active{\r\n\tfont-weight: bold !important;\r\n\tcolor: #9C171E !important;\r\n}\r\n\t\r\n#toc a, .td-post-content #toc-list a {\r\n  text-decoration: none;\r\n  color: #ea1717 !important;\r\n  transition: .2s ease;\r\n\tfont-weight: 400 !important;\r\n\tdisplay: block;\r\n\t\r\n\tpadding: 4px 16px 4px 0;\r\n}\r\n\r\n#toc.sticky {\r\n  position: fixed;\r\n\/*   top: 73px; *\/\r\n\tbottom: 0;\r\n  z-index: 100; \r\n  box-shadow: 0 2px 5px rgba(0,0,0,0.1); \r\n\twidth: 100%; \r\n\tbackground-color: #FFF;\r\n\/* \tbackground-color: #FFF1F1; *\/\r\n\tborder-bottom: 1px solid #ea1717;\r\n\/*   border: 1px solid #393939; *\/\r\n  box-shadow: 0px 0px 14px 0px #00000040;\r\n  cursor: pointer;\r\n\tanimation: fadein .3s ease;\r\n\tpadding: 12px 16px !important;\r\n}\r\n\t\r\n\t.fadein{\r\n\t\tanimation: fadein .3s ease;\r\n\t}\r\n\t\r\n\t.fadeout{\r\n\t\tanimation: fadeout .3s ease;\r\n\t}\r\n\t\r\n\t\r\n\t@keyframes fadein{\r\n\t\t0% {\r\n\t\t\topacity: 0;\r\n\t\t}\r\n\t\t100%{\r\n\t\t\topacity: 1;\r\n\t\t}\r\n\t}\r\n\t\r\n\t@keyframes fadeout{\r\n\t\t0% {\r\n\t\t\topacity: 1;\r\n\t\t}\r\n\t\t100%{\r\n\t\t\topacity: 0;\r\n\t\t}\r\n\t}\r\n\r\n\t\r\n#toc.sticky .header p{\r\n\tmargin-bottom: 10px;\r\n\tmargin-top: 10px;\r\n}\r\n\r\n#toc.sticky .toc-icon{\r\n  visibility: visible;\r\n\/* \ttransition: 0.4s ease; *\/\r\n}\r\n\t\r\n\t.toc-icon{\r\n\t\talign-items: center;\r\n    \tdisplay: flex;\r\n\t}\r\n\t\r\n\tsvg.header-icon{\r\n\/* \t\tbackground-color: #9c171e; *\/\r\n\t\tbackground-color: #FFF;\r\n\t\tborder-radius: 30px;\r\n\t\tpadding: 5px;\r\n\t}\r\n\r\n#toc.sticky .list{\r\n\/*   max-height: 0; *\/\r\n  transition: height 0.4s ease;\r\n}\r\n\t\r\n\t#toc .list{\r\n\/*   max-height: 0; *\/\r\n  transition: height 0.4s ease;\r\n}\r\n\r\n#toc .header.active .toc-icon{\r\n\ttransform: rotate(0deg); \r\n\topacity: 1;\r\n}\r\n\r\n\t#toc .header.active + .list {\r\n\t  max-height: 200px; \/* Adjust this value as needed *\/\r\n\t  opacity: 1;\r\n\t}\r\n\t\r\n\t#placeholder-toc{\r\n\/* \t\tdisplay: none; *\/\r\n\t}\r\n\t\r\n\t@media (min-width: 768px) and (max-width: 991px){\r\n\t\t#toc.sticky{\r\n\/* \t\t\ttop: 104px; *\/\r\n\t\t\tbottom: 0px;\r\n\t\t}\r\n\t\t\r\n\t\t#toc{\r\n\t\t\twidth: unset !important;\r\n\t\t}\r\n\t}\r\n\t\r\n\t@media (max-width: 767px){\r\n\t\t#toc{\r\n\t\t\twidth: 100% !important;\r\n\t\t\tdisplay: inline-block;\r\n\t\t}\r\n\t\t\r\n\t\t#toc.sticky{\r\n\t\t\twidth: 84% !important;\r\n\/* \t\t\ttop: 81px; *\/\r\n\t\t\tbottom: 60px;\r\n\t\t\tmargin-left: auto;\r\n\t\t\tmargin-right: auto;\r\n\t\t\tpadding: 0 16px;\r\n\/* \t\t\tright: 5%; *\/\r\n\t\t}\r\n\t}\r\n<\/style>\r\n\r\n<style>\r\n\t#list_toc li {margin-bottom: 0;margin-top: 5px;}\r\n\t#list_toc > li > ul {padding-left: 20px;margin-bottom: 0;}\r\n\t#list_toc{height:max-content;transition:ease-in-out}\r\n\t#list_toc li {margin-bottom: 0;margin-top: 5px;}\r\n\t#list_toc_float li.active > a {color:#b1252d;background: #ffe1e3;}\r\n\t#list_toc_float li a {padding:3px 7px}\r\n\t#list_toc_float li a {\r\n\t\tdisplay: block;\r\n\t\tcolor:#000;\r\n\t\tmargin-bottom: 10px;\r\n\t\ttransition:all 0.2s ease-in-out;\r\n\t\tfont-size:15px\r\n\t}\r\n\t#list_toc_float li{list-style:none;list-style-position:inside; margin-left:0;}\r\n\t#list_toc_float a:hover{color:#b1252d;}\r\n\t\r\n\t#list_toc_float li a{margin-bottom:0px}\r\n\t#toc_group_float{\r\n\t\tline-height: 24px;\r\n\t\tmax-height: calc(100vh - 100px);\r\n\t\toverflow: auto;\r\n\t\tz-index: 99;\r\n\t\tdisplay:none!important;\r\n\t\tbackground:#fff;\r\n\t\ttransition:all 0.5s linear\r\n\t}\r\n\t\r\n\t@media (min-width:1019px){\r\n\t\t#toc_group_float {\r\n\t\t\tdisplay:block!important;\r\n\t\t\t}\r\n\t\t\t\t#toc_group_article {\r\n\t\t\tdisplay:none;\r\n\t\t}\r\n\t}\r\n\t\r\n\t@media (max-width:768px){\r\n\t\t#toc_group_article {\r\n\t\t\tdisplay:none;\r\n\t\t}\r\n\t}\r\n\t\r\n\t \/* custom scrollbar style *\/\r\n::-webkit-scrollbar {\r\n    width: 7px;\r\n}\r\n::-webkit-scrollbar-track {\r\n    background: #d7a2a4;\r\n}\r\n::-webkit-scrollbar-thumb {\r\n    background: #b1252d;\r\n    border-radius: 15px;\r\n}\t\t\r\n\r\n<\/style>\r\n\r\n<script>\r\n\tdocument.addEventListener('DOMContentLoaded', function() {\r\n\t\t\/\/ Function to handle click on all <a> elements with href starting with #\r\n\t\tfunction handleTitleClick(event) {\r\n\t\t\tevent.preventDefault();\r\n\t\t\tconst targetId = this.getAttribute('href').substring(1);\r\n\t\t\tconst targetElement = document.getElementById(targetId);\r\n\r\n\t\t\tif (targetElement) {\r\n\t\t\t\tconst headerHeight = document.querySelector('#toc .header').offsetHeight;\r\n\t\t\t\tconst navbarHeight = document.getElementById('tdi_34') ? document.getElementById('tdi_34').offsetHeight : 0;\r\n\t\t\t\tconst windowHeight = window.innerHeight;\r\n\t\t\t\tconst targetOffset = targetElement.offsetTop;\r\n\t\t\t\tconst scrollTo = targetOffset + (windowHeight \/ 2) + (headerHeight) - navbarHeight - 40;\r\n\r\n\t\t\t\twindow.scrollTo({\r\n\t\t\t\t\ttop: scrollTo,\r\n\t\t\t\t\tbehavior: 'smooth'\r\n\t\t\t\t});\r\n\t\t\t}\r\n\t\t}\r\n\r\n\t\t\/\/ Add event listener for all <a> elements in toc-list and list-toc\r\n\t\tconst titleLinks = document.querySelectorAll('#toc-list a, #list_toc a');\r\n\t\ttitleLinks.forEach(link => {\r\n\t\t\tlink.addEventListener('click', handleTitleClick);\r\n\t\t});\r\n\t});\r\n<\/script>\r\n\r\n<!-- ToC List for mobile -->\r\n<script>\r\n \/\/ Generate TOC based on headings\r\ndocument.addEventListener(\"DOMContentLoaded\", function() {\r\n  \/\/ Get the element that will contain the TOC\r\n  const tocList = document.getElementById('toc-list');\r\n\r\n  \/\/ Get the element with class 'td-post-content'\r\n  const article = document.querySelector('.td-post-content');\r\n\r\n  \/\/ Find all h2 elements within the article\r\n  const headers = article.getElementsByTagName('h2');\r\n\r\n  \/\/ Loop through the h2 elements and create a list item for each one\r\n  for (let i = 0; i < headers.length; i++) {\r\n    const header = headers[i];\r\n    const headerText = header.textContent;\r\n\/\/     const headerId = 'header-' + i;\r\n    const headerId = headerText\r\n    .toLowerCase()\r\n    .trim()\r\n    .replace(\/[^\\w\\s-]\/g, '')  \/\/ hapus tanda baca\r\n    .replace(\/\\s+\/g, '-'); \/\/ ganti spasi jadi \"-\"\r\n\r\n    \/\/ Set an ID for the header if it doesn't have one\r\n    header.setAttribute('id', headerId);\r\n\r\n    \/\/ Create a list item for the TOC\r\n    const listItem = document.createElement('li');\r\n\r\n    \/\/ Create a link for the list item\r\n    const link = document.createElement('a');\r\n    link.setAttribute('href', '#' + headerId);\r\n    link.textContent = headerText;\r\n\r\n    \/\/ Append the link to the list item\r\n    listItem.appendChild(link);\r\n\r\n    \/\/ Append the list item to the TOC list\r\n    tocList.appendChild(listItem);\r\n  }\r\n});\r\n\r\n\/\/ Keep height and placement of content using placeholder in place of TOC\r\ndocument.addEventListener(\"DOMContentLoaded\", function() {\r\n  const toc = document.querySelector('#toc');\r\n  const placeholderToc = document.querySelector('#placeholder-toc');\r\n\r\n  function setPlaceholderHeight() {\r\n    placeholderToc.style.height = `${toc.offsetHeight}px`;\r\n  }\r\n\r\n  \/\/ Set the initial height of the placeholder\r\n  setPlaceholderHeight();\r\n\r\n  \/\/ Update the height on window resize\r\n  window.addEventListener('resize', setPlaceholderHeight);\r\n});\r\n  const tocTitle = document.querySelector('#toc-title');\r\n\r\n\/\/ Sticky TOC and update heading\r\ndocument.addEventListener(\"DOMContentLoaded\", function() {\r\n  const toc = document.querySelector('#toc');\r\n  const footer = document.querySelector('.td-footer-template-wrap');\r\n  const tocParent = toc.parentElement;\r\n  const divTop = tocParent.getBoundingClientRect().top + window.pageYOffset;\r\n  const tocHeight = toc.offsetHeight;\r\n  const triggerPoint = divTop + tocHeight + 700;\r\n  const footerHeight = footer.offsetHeight;\r\n  const triggerFooterPoint = footer.getBoundingClientRect().top + window.pageYOffset - footerHeight - footerHeight - footerHeight;\r\n  const phtoc = document.querySelector('#placeholder-toc');\r\n  const headers = document.querySelectorAll('.td-post-content h2');\r\n  const navLinks = document.querySelectorAll('#toc-list a');\r\n\t\r\n\tconst panel2 = document.querySelector(\"#toc .list\");\r\n\tvar icon = document.querySelector(\".toc-icon\");\r\n\r\n  let activeLink = null; \/\/ Declare activeLink outside the loop\r\n\t\r\n  \/\/ Function to handle scroll and add\/remove .sticky class\r\n  function handleScroll() {\r\n    const windowTop = window.pageYOffset || document.documentElement.scrollTop;\r\n    let currentHeader = '';\r\n\r\n    \/\/ Highlight user progress as the heading comes\r\n    headers.forEach(header => {\r\n\t\tconst headerTop = header.offsetTop;\r\n\t\tconst headerHeight = header.clientHeight;\r\n\t\tif(window.innerWidth < 767){\r\n\t\t\ttocTitle.textContent = 'Table of Contents'; \/\/ Selalu pertahankan judul ini di mobile\r\n\t\t} else {\r\n\t\t\tif (window.scrollY >= (headerTop - headerHeight + 700)) {\r\n\t\t\t\tconst currentHeaderId = header.getAttribute('id');\r\n\t\t\t\tconst currentHeaderText = document.getElementById(currentHeaderId).textContent;\r\n\t\t\t\ttocTitle.textContent = currentHeaderText;\r\n\t\t\t\tcurrentHeader = currentHeaderId;\r\n\t\t\t}\r\n\t\t}\r\n\t});\r\n\r\n    navLinks.forEach(link => {\r\n      link.classList.remove('active');\r\n      if(currentHeader != '') {\r\n\t\t  if (link.getAttribute('href').includes(currentHeader)) {\r\n\t\t\t  link.classList.add('active');\r\n\t\t  }\r\n\t  }\r\n    });\r\n\r\n    \/\/ Update TOC title if sticky\r\n    if (windowTop > triggerPoint) {\r\n      if (!toc.classList.contains('sticky')) {\r\n        phtoc.style.display = \"block\";\r\n        toc.classList.add('sticky');\r\n        toc.style.width = `${tocParent.offsetWidth}px`; \/\/ Set width to match the parent element\r\n        toc.setAttribute('style', 'width: ' + tocParent.offsetWidth + 'px !important;');\r\n        toc.style.backgroundColor = \"#FFF\";\r\n\t\tpanel2.style.height = '0px';\r\n\t\t  icon.style.transform = \"rotate(180deg)\";\r\n\t\t  if(window.innerWidth < 767){\r\n\t\t\t  tocTitle.textContent = 'Table of Contents'; \/\/ Reset title\r\n       \t\t  toc.style.width = '150px'; \/\/ Set width to match the parent element\r\n\t\t  }\r\n      }\r\n      if (currentHeader) {\r\n        tocTitle.textContent = activeLink ? activeLink.textContent : \"\"; \/\/ Update title only if activeLink exists\r\n      }\r\n    } else {\r\n      toc.classList.remove('sticky');\r\n      phtoc.style.display = \"none\";\r\n      toc.style.width = 'unset'; \/\/ Reset to original width\r\n      toc.style.backgroundColor = \"#FFF\";\r\n      tocTitle.textContent = 'Table of Contents'; \/\/ Reset title\r\n\t\tpanel2.style.height = panel2.scrollHeight + \"px\";\r\n\t\ticon.style.transform = \"rotate(180deg)\";\r\n    }\r\n  }\r\n\r\n    \/\/ Attach the scroll event listener to the window\r\n    window.addEventListener('scroll', handleScroll);\r\n\r\n    \/\/ Initial call to handleScroll to set the correct state on load\r\n    handleScroll();\r\n});\r\n\t\r\n\t\/\/ Open toggle TOC\r\n\t  document.addEventListener(\"DOMContentLoaded\", function() {\r\n\t\tvar tocHeader = document.querySelector(\"#toc .header\");\r\n\t\tvar toc = document.querySelector(\"#toc\");\r\n\t\tvar icon = document.querySelector(\".toc-icon\");\r\n\t\tconst tocTitle = document.querySelector('#toc-title');\r\n\t\tconst tocs = document.querySelector('#toc.sticky');\r\n \t\tconst tocParent = toc.parentElement;\t\t  \r\n\r\n\t\t  tocHeader.addEventListener(\"click\", function() {\r\n\t\t\tvar panel = this.nextElementSibling;\r\n\t\t\tif (panel.style.height !== '0px') { \/\/ Check if height is not 0px\r\n\t\t\t  panel.style.height = '0px'; \/\/ Set height to 0 for full collapse\r\n\t\t\t  icon.style.transform = \"rotate(180deg)\";\r\n\t\t\t\tif(window.innerWidth > 768){\r\n\t\t\t\t\tif(!toc.classList.contains('sticky')){\r\n\t\t\t\t\t\ttoc.style.width = \"unset\";\r\n\t\t\t\t\t}\r\n\t\t\t\t\tif 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scroll position offset\r\n\t\tfunction scrollToElementWithOffset(elementId) {\r\n\t\t\tconst element = document.getElementById(elementId);\r\n\t\t\tif (element) {\r\n\t\t\t\tconst offset = getNavbarHeight();\r\n\t\t\t\tconst elementPosition = element.getBoundingClientRect().top;\r\n\t\t\t\tconst offsetPosition = elementPosition - offset - 40;\r\n\r\n\t\t\t\twindow.scrollBy({\r\n\t\t\t\t\ttop: offsetPosition,\r\n\t\t\t\t\tbehavior: 'smooth'\r\n\t\t\t\t});\r\n\t\t\t}\r\n\t\t}\r\n\r\n\t\t\/\/ Function to handle title link click\r\n\t\tfunction handleTitleClick(event) {\r\n\t\t\tevent.preventDefault();\r\n\t\t\tconst href = event.target.getAttribute('href').substr(1);\r\n\t\t\tscrollToElementWithOffset(href);\r\n\t\t}\r\n\r\n\t\t\/\/ Add event listener for all title links\r\n\t\tconst titleLinks = document.querySelectorAll('a[href^=\"#\"]');\r\n\t\ttitleLinks.forEach(link => {\r\n\t\t\tlink.addEventListener('click', handleTitleClick);\r\n\t\t});\r\n\t});\r\n    <\/script> -->\r\n<\/span><\/p>\n<p><span style=\"font-weight: 400\"><a href=\"https:\/\/www.hashmicro.com\/ph\/free-product-tour\/?medium=free-product-tour\" target=\"_blank\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/10\/bir-demo-gratis.webp\" data-desktop-src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/10\/bir-demo-gratis.webp\" data-mobile-src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/10\/mobile-bir-demo-gratis.webp\" alt=\"FreeDemo\" class=\"responsive-image-banner\" width=\"620\" height=\"255\"><\/a>\r\n\r\n<script>\r\n    \/\/ check which image to use based on screensize\r\n    document.addEventListener(\"DOMContentLoaded\", function() {\r\n        function updateImageSource() {\r\n            var images = document.querySelectorAll('.responsive-image-banner');\r\n            var screenWidth = window.innerWidth;\r\n\r\n            images.forEach(function(img) {\r\n                var mobileSrc = img.getAttribute('data-mobile-src');\r\n                var desktopSrc = img.getAttribute('data-desktop-src');\r\n\r\n                if (screenWidth < 576 && mobileSrc) {\r\n                    img.setAttribute('src', mobileSrc);\r\n                } else {\r\n                    img.setAttribute('src', desktopSrc);\r\n                }\r\n            });\r\n        }\r\n\r\n        \/\/ Initial check\r\n        updateImageSource();\r\n\r\n        \/\/ Update on resize\r\n        window.addEventListener('resize', updateImageSource);\r\n    });\r\n<\/script><\/span><\/p>\n<h2><b>What are Trade Receivables?<\/b><\/h2>\n<p><span style=\"font-weight: 400\">Trade receivables refer to the amounts owed to a company for goods or services sold on credit. These amounts are recorded in the company&#8217;s <\/span><a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/cash-receipts-journal\/\"><span style=\"font-weight: 400\">cash receipts journal<\/span><\/a><span style=\"font-weight: 400\"> and are considered current assets on the balance sheet. In most cases, they are expected to be paid within a year, often within 30 to 90 days based on the company\u2019s terms with customers.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Trade receivables are a major part of a business&#8217;s current assets, along with cash, inventory, and prepaid liabilities. They are classified as short-term assets because they are expected to convert into cash quickly. Businesses also track payment terms and schedules for proper financial management.<\/span><\/p>\n<h2><b>What are Non-Trade Receivables?<\/b><\/h2>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-27616\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/07\/What-are-Non-Trade-Receivables.webp\" alt=\"Trade receivables\" width=\"1200\" height=\"675\" srcset=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/07\/What-are-Non-Trade-Receivables.webp 1200w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/07\/What-are-Non-Trade-Receivables-300x169.webp 300w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/07\/What-are-Non-Trade-Receivables-1024x576.webp 1024w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/07\/What-are-Non-Trade-Receivables-768x432.webp 768w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/07\/What-are-Non-Trade-Receivables-747x420.webp 747w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/07\/What-are-Non-Trade-Receivables-150x84.webp 150w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/07\/What-are-Non-Trade-Receivables-696x392.webp 696w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/07\/What-are-Non-Trade-Receivables-1068x601.webp 1068w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p><span style=\"font-weight: 400\">Non-trade receivables are amounts owed to a company that arise from sources other than regular business sales. These can include tax refunds, insurance payouts, or employee loans. While these are recorded on the balance sheet, they can be reclassified as noncurrent assets if payment is expected beyond a year.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Non-trade receivables do not involve generating an invoice. Efficient management of trade and other receivables is crucial to maintaining liquidity, as it also plays a role in cash flow. <\/span><span style=\"font-weight: 400\">Examples include employee loans, wage advances, income tax refunds, interest payments, and insurance claims.<\/span><\/p>\n<h2><b>How to Calculate Trade Receivables<\/b><\/h2>\n<p><span style=\"font-weight: 400\">Calculating <\/span><b>trade receivables<\/b><span style=\"font-weight: 400\"> is relatively straightforward once you understand the components that make up this figure. You can calculate them using the following formula:<\/span><\/p>\n<p><span style=\"font-weight: 400\">Trade receivables = Bills Receivables + Debtors<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><b>Bills Receivables<\/b><span style=\"font-weight: 400\">: These are invoices that are still within their payment terms and have not yet reached the due date. They represent amounts owed to the business that are expected to be collected soon.<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Debtors<\/b><span style=\"font-weight: 400\">: Debtors refer to invoices that have passed their due date and are still unpaid. These represent amounts that are overdue and may require follow-up or collection efforts.<\/span><\/li>\n<\/ul>\n<h3><b>Example<\/b><\/h3>\n<p><span style=\"font-weight: 400\">Let\u2019s assume a company sells <\/span><b>\u20b150,000<\/b><span style=\"font-weight: 400\"> worth of office equipment on credit, and the following amounts are involved:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><b>Bills Receivables<\/b><span style=\"font-weight: 400\">: <\/span><b>\u20b135,000<\/b><span style=\"font-weight: 400\"> (invoices due within the next 30 days)<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Debtors<\/b><span style=\"font-weight: 400\">: <\/span><b>\u20b115,000<\/b><span style=\"font-weight: 400\"> (invoices overdue by 45 days)<\/span><\/li>\n<\/ul>\n<h3><b>Using the formula<\/b><\/h3>\n<p><b>Trade receivables = \u20b135,000 + \u20b115,000 = \u20b150,000<\/b><\/p>\n<p><span style=\"font-weight: 400\">So, in this example, the company has <\/span><b>\u20b150,000<\/b><span style=\"font-weight: 400\"> in total <\/span><b>trade receivables<\/b><span style=\"font-weight: 400\">. This amount represents what the company is owed, including both outstanding bills and overdue invoices.<\/span><\/p>\n<h3><b>Accounting for trade receivables:<\/b><\/h3>\n<ol>\n<li style=\"font-weight: 400\"><b>At the time of sale<\/b><span style=\"font-weight: 400\">:<\/span><\/li>\n<\/ol>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The <\/span><b>sales account<\/b><span style=\"font-weight: 400\"> is credited by <\/span><b>\u20b150,000<\/b><span style=\"font-weight: 400\"> (recording the revenue).<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The <\/span><b>trade receivables account<\/b><span style=\"font-weight: 400\"> is debited by <\/span><b>\u20b150,000<\/b><span style=\"font-weight: 400\"> (representing the amount owed by the customer).<\/span><\/li>\n<\/ul>\n<ol>\n<li style=\"font-weight: 400\"><b>When payment is received<\/b><span style=\"font-weight: 400\">:<\/span><\/li>\n<\/ol>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Once the customer pays, the company <\/span><b>credits the trade receivables account<\/b><span style=\"font-weight: 400\"> by <\/span><b>\u20b150,000<\/b><span style=\"font-weight: 400\"> (removing the outstanding amount).<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">The company <\/span><b>debites the cash account<\/b><span style=\"font-weight: 400\"> by <\/span><b>\u20b150,000<\/b><span style=\"font-weight: 400\"> (recording the incoming payment).<\/span><\/li>\n<\/ul>\n<h2><b>Non-trade receivables example<\/b><\/h2>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-27618\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/07\/Non-Trade-Receivables-example.webp\" alt=\"Trade receivables\" width=\"1200\" height=\"675\" srcset=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/07\/Non-Trade-Receivables-example.webp 1200w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/07\/Non-Trade-Receivables-example-300x169.webp 300w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/07\/Non-Trade-Receivables-example-1024x576.webp 1024w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/07\/Non-Trade-Receivables-example-768x432.webp 768w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/07\/Non-Trade-Receivables-example-747x420.webp 747w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/07\/Non-Trade-Receivables-example-150x84.webp 150w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/07\/Non-Trade-Receivables-example-696x392.webp 696w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/07\/Non-Trade-Receivables-example-1068x601.webp 1068w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p><span style=\"font-weight: 400\">Let\u2019s say a business is expecting a \u20b130,000 refund from the Bureau of Internal Revenue (BIR) as part of a tax refund. The company will recognize this as a non-trade receivable. In addition, the business has lent \u20b110,000 to an employee as an employee loan. These amounts are recorded as non-trade receivables on the balance sheet.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><strong>Tax Refund (\u20b130,000):<\/strong><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">This is a receivable the company expects to receive in the near future from the government. It is recorded as a current asset on the balance sheet, since it is expected to be received within the year. This is recorded under real accounts, as it represents an actual asset the company expects to convert into cash.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><b>Employee Loan (\u20b110,000)<\/b><span style=\"font-weight: 400\">:<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">This amount is loaned to an employee and expected to be repaid. Like the tax refund, it is a current asset if repaid within a year. If beyond a year, it becomes a noncurrent asset. These loans are real accounts, as they represent future assets.<\/span><\/p>\n<p><span style=\"font-weight: 400\">In this example, the total non-trade receivables would be \u20b140,000, consisting of the tax refund and the employee loan. These entries are recorded under both <\/span><a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/real-and-nominal-accounts\/\"><span style=\"font-weight: 400\">real and nominal accounts<\/span><\/a><span style=\"font-weight: 400\"> in the cash receipts journal, ensuring accurate financial reporting.<span id=\"1\"><\/span><\/span><\/p>\n<h2><b>Trade Receivables and Working Capital<\/b><\/h2>\n<p><span style=\"font-weight: 400\">A company\u2019s accounts receivable play a crucial role in calculating working capital. Working capital is a financial metric used to measure a company\u2019s operational efficiency and short-term financial health. It is calculated as:<\/span><\/p>\n<p><b>Working Capital = Current Assets \u2013 Current Liabilities<\/b><\/p>\n<p><span style=\"font-weight: 400\">Current assets include items such as accounts receivable, inventory, and cash equivalents, while current liabilities encompass accounts such as accounts payable.<\/span><\/p>\n<h3><b>Days Sales Outstanding (DSO)<\/b><\/h3>\n<p><span style=\"font-weight: 400\">One important metric for evaluating working capital is Days Sales Outstanding (DSO), which measures the average number of days it takes for a company to collect payment after a sale. A lower DSO is generally more favorable, as it indicates that the company is receiving payments quickly and can use the cash for further operations or investments.<\/span><\/p>\n<p><span style=\"font-weight: 400\">However, the other side of this equation is the buyer. Some buyers may extend their payment terms to increase their <a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/days-payable-outstanding\/\">Days Payable Outstanding<\/a> (DPO), which represents how long they take to pay their suppliers. A higher DPO can result in a higher DSO for the supplier, as they may not receive payment for 30 or even 90 days, depending on the payment terms.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Effective management of trade receivables and working capital ensures that a company can maintain a balance between quick payment collection and supplier relationships.<span id=\"2\"><\/span><\/span><\/p>\n<p><b>Read more: <\/b><a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/accounts-receivable-software\/\"><b>Top 20 Accounts Receivable Software Solutions in 2025<\/b><\/a><\/p>\n<h2><b>How to Reduce Trade Receivables?<\/b><\/h2>\n<p><img decoding=\"async\" class=\"aligncenter size-full wp-image-27617\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/07\/How-to-Reduce-Trade-Receivables.webp\" alt=\"Trade receivables\" width=\"1200\" height=\"675\" srcset=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/07\/How-to-Reduce-Trade-Receivables.webp 1200w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/07\/How-to-Reduce-Trade-Receivables-300x169.webp 300w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/07\/How-to-Reduce-Trade-Receivables-1024x576.webp 1024w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/07\/How-to-Reduce-Trade-Receivables-768x432.webp 768w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/07\/How-to-Reduce-Trade-Receivables-747x420.webp 747w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/07\/How-to-Reduce-Trade-Receivables-150x84.webp 150w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/07\/How-to-Reduce-Trade-Receivables-696x392.webp 696w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/07\/How-to-Reduce-Trade-Receivables-1068x601.webp 1068w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p><span style=\"font-weight: 400\">Reducing trade receivables is essential for improving cash flow and minimizing financial risk. By shortening the time it takes to collect payments, businesses can free up cash for operations, invest in growth, and reduce reliance on external financing. Now, let\u2019s explore some effective strategies to achieve this.<\/span><\/p>\n<h3><b>Invoice immediately<\/b><\/h3>\n<p><span style=\"font-weight: 400\">Delays in issuing invoices can directly lead to delays in payment. To minimize this, ensure that invoices are issued within 48 hours of delivering a product or completing a service. The quicker you invoice, the faster you can expect to receive payment, improving working capital.<\/span><\/p>\n<h3><b>Mail invoices as a last resort<\/b><\/h3>\n<p><span style=\"font-weight: 400\">Traditional mail can slow down the invoicing process. Instead, email invoices as soon as possible. This method accelerates the receipt of invoices by your clients and leads to quicker processing and payment, positively impacting your trade receivables.<\/span><\/p>\n<h3><b>Establish clear payment terms<\/b><\/h3>\n<p><span style=\"font-weight: 400\">Clearly defined payment terms are vital for reducing payment delays. By communicating terms such as \u201cdue upon receipt\u201d, you can encourage clients to pay sooner. Additionally, providing easy payment methods like PayPal or credit cards can further expedite payments, reducing the aging period of trade receivables.<\/span><\/p>\n<h3><b>Consider discounting<\/b><\/h3>\n<p><span style=\"font-weight: 400\">Offering a small discount (such as 5%) for clients who pay early is an effective way to encourage faster payments. This strategy incentivizes customers to clear invoices before their due dates, helping you reduce non-trade receivables and keep your trade receivables in check.<\/span><\/p>\n<h3><b>Add deposits on larger purchases<\/b><\/h3>\n<p><span style=\"font-weight: 400\">For larger\/custom orders, deposits reduce credit risk and secure partial payment upfront, improving cash flow. Especially useful for high-value products\/services, this tactic ensures financial stability before work begins.<\/span><\/p>\n<h3><b>Don\u2019t wait for overdue payments<\/b><\/h3>\n<p><span style=\"font-weight: 400\">When invoices go unpaid for extended periods, escalate the issue promptly. Consider sending reminder emails or involving a collection agency if necessary. This reduces the risk of doubtful accounts and helps recover trade receivables that might otherwise be written off.<\/span><\/p>\n<p><span style=\"font-weight: 400\">To better manage trade receivables and optimize cash flow, HashMicro\u2019s accounting software offers an automated solution that streamlines invoicing, payment tracking, and reporting. Click the banner below to explore our pricing and learn how you can implement it in your business today.<\/span><\/p>\n<p><span style=\"font-weight: 400\"><a href=\"https:\/\/www.hashmicro.com\/ph\/offer\/download-erp-pricing-list?medium=banner-article\" target=\"_blank\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/10\/bir-skema-harga.webp\" data-desktop-src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/10\/bir-skema-harga.webp\" data-mobile-src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/10\/mobile-bir-skema-harga.webp\" alt=\"SkemaHarga\" class=\"responsive-image-banner\" width=\"620\" height=\"255\"><\/a>\r\n\r\n<script>\r\n    \/\/ check which image to use based on screensize\r\n    document.addEventListener(\"DOMContentLoaded\", function() {\r\n        function updateImageSource() {\r\n            var images = document.querySelectorAll('.responsive-image-banner');\r\n            var screenWidth = window.innerWidth;\r\n\r\n            images.forEach(function(img) {\r\n                var mobileSrc = img.getAttribute('data-mobile-src');\r\n                var desktopSrc = img.getAttribute('data-desktop-src');\r\n\r\n                if (screenWidth < 576 && mobileSrc) {\r\n                    img.setAttribute('src', mobileSrc);\r\n                } else {\r\n                    img.setAttribute('src', desktopSrc);\r\n                }\r\n            });\r\n        }\r\n\r\n        \/\/ Initial check\r\n        updateImageSource();\r\n\r\n        \/\/ Update on resize\r\n        window.addEventListener('resize', updateImageSource);\r\n    });\r\n<\/script><\/span><\/p>\n<h2><b>What Does an Increase in Trade Receivables Mean?<\/b><\/h2>\n<p><span style=\"font-weight: 400\">An increase in trade receivables often means a company has made more sales, but payments haven&#8217;t been collected quickly enough. This could indicate inefficiencies in the collection process, especially if the receivables-to-cash ratio is high. In this case, the company might be facing difficulties in converting its receivables into cash.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Alternatively, a low balance may suggest that the company\u2019s payment terms are too strict, potentially limiting sales. On the flip side, an increase in receivables could point to higher-risk clients who delay payment or are unable to pay due to cash flow issues.<\/span><\/p>\n<p><span style=\"font-weight: 400\">To mitigate this risk, companies set up an Allowance for Doubtful Accounts on their balance sheet. This allowance estimates potential losses from uncollected receivables and adjusts the total amount shown in the assets section.<\/span><\/p>\n<h2><b>Manage Trade Receivables With HashMicro&#8217;s Accounting Software<\/b><\/h2>\n<p><img decoding=\"async\" class=\"wp-image-22716 size-full aligncenter\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/HashMicro-Accounting-Software-1.webp\" alt=\"HashMicro Accounting Software\" width=\"1200\" height=\"675\" srcset=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/HashMicro-Accounting-Software-1.webp 1200w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/HashMicro-Accounting-Software-1-300x169.webp 300w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/HashMicro-Accounting-Software-1-1024x576.webp 1024w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/HashMicro-Accounting-Software-1-768x432.webp 768w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/HashMicro-Accounting-Software-1-747x420.webp 747w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/HashMicro-Accounting-Software-1-150x84.webp 150w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/HashMicro-Accounting-Software-1-696x392.webp 696w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2025\/01\/HashMicro-Accounting-Software-1-1068x601.webp 1068w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p><span style=\"font-weight: 400\">Manual trade receivable management, even with basic software, can harm cash flow due to errors and delays. <\/span><a href=\"https:\/\/www.hashmicro.com\/ph\/accounting-software\"><b>HashMicro&#8217;s Accounting Software<\/b><\/a><span style=\"font-weight: 400\">, offers a comprehensive solution to streamline and automate the management of trade receivables, helping businesses improve efficiency and accuracy. Here are some key benefits:<\/span><\/p>\n<p><b>Automated invoice tracking<\/b><\/p>\n<p><span style=\"font-weight: 400\">HashMicro automates invoicing and reminders, minimizing delays and promptly collecting payments, thus managing trade receivables.<\/span><\/p>\n<h4><b>Real-time reporting<\/b><\/h4>\n<p><span style=\"font-weight: 400\">Real-time reporting allows instant viewing and tracking of trade receivables status. Monitor metrics like turnover ratio and days to make data-driven decisions and improve receivables management.<\/span><\/p>\n<h4><b>Integrated payment solutions<\/b><\/h4>\n<p><span style=\"font-weight: 400\">The software integrates seamlessly with payment gateways, allowing customers to pay invoices online. This integration not only speeds up the collection process but also enhances cash flow, reducing the time your business waits for payment.<\/span><\/p>\n<h4><b>Customizable credit policies<\/b><\/h4>\n<p><span style=\"font-weight: 400\">HashMicro software manages credit policies by setting limits, terms, and assessing customer creditworthiness, protecting your business from excessive credit risk.<\/span><\/p>\n<h4><b>Comprehensive aging reports<\/b><\/h4>\n<p><span style=\"font-weight: 400\">Generate detailed aging reports to quickly identify overdue accounts. This feature allows you to prioritize collections and take appropriate action, reducing the likelihood of bad debts and improving your overall financial health.<\/span><\/p>\n<h2><b>Conclusion<\/b><\/h2>\n<p><span style=\"font-weight: 400\">In this article, we explored how effectively managing trade receivables is essential for improving cash flow and business stability. Strategies like issuing invoices promptly and establishing clear payment terms can help reduce overdue accounts and boost financial health.<\/span><\/p>\n<p><a href=\"https:\/\/www.hashmicro.com\/ph\/accounting-software\"><b>HashMicro\u2019s accounting software<\/b><\/a> <span style=\"font-weight: 400\">offers a powerful solution for automating accounting management. With features like automated invoicing, real-time reporting, and integrated payment solutions, it helps businesses streamline the receivables process and improve cash flow.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Ready to optimize your receivables and improve financial efficiency? <\/span><a href=\"https:\/\/www.hashmicro.com\/ph\/free-product-tour\/?medium=web-form-header\"><b>Book a free demo<\/b><\/a><span style=\"font-weight: 400\"> with HashMicro today to discover how our accounting software can help your business stay ahead.<\/span><\/p>\n<p><span style=\"font-weight: 400\"><\/span><\/p>\n<h2><strong>FAQ About Trade Receivables<br \/>\n<\/strong><\/h2>\n<ul class=\"bottom_faq\">\n<li>\n<details>\n<summary><strong>Are trade receivables a liability or asset?<br \/>\n<\/strong><\/summary>\n<p>They are considered assets, specifically current assets, on a company\u2019s balance sheet. They represent amounts owed by customers for goods or services that have been delivered but not yet paid for<\/p>\n<\/details>\n<\/li>\n<li>\n<details>\n<summary><strong>What is the difference between trade receivables and bills receivable?<br \/>\n<\/strong><\/summary>\n<p>Trade receivables refer to amounts owed for goods or services sold on credit, while bills receivable refer to promissory notes or formal documents in which a customer agrees to pay a specific amount by a certain date. Bills receivable are usually more formal and involve a written agreement.<\/p>\n<\/details>\n<\/li>\n<li>\n<details>\n<summary><strong>What do you mean by trade payables?<br \/>\n<\/strong><\/summary>\n<p>Trade payables are the amounts a business owes to its suppliers for goods or services it has received but not yet paid for. Unlike trade receivables, which are money owed to the business, trade payables are debts the business must settle with others.<\/p>\n<\/details>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Do you often struggle with collecting payments from your customers? Managing trade receivables effectively can be a challenge, especially when balances pile up and delay cash flow. This can disrupt your operations and limit your business growth. Alam mo ba? Recent data from Bangko Sentral ng Pilipinas reported in early 2025 shows that nearly half [&hellip;]<\/p>\n","protected":false},"author":49,"featured_media":27615,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[157],"tags":[],"class_list":{"0":"post-27611","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-accounting"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.6 (Yoast SEO v26.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Trade Receivables Explained: Examples and How to Reduce Them<\/title>\n<meta name=\"description\" content=\"Trade receivables are current assets owed to a company for credit sales, recorded in the cash receipts journal.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" 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