What is the minimum expectation for Accounts Receivables?

The minimum expectation for Accounts Receivables being set at less than 5% is based on the need for a company to maintain an efficient cash flow and minimize overdue accounts. By establishing this threshold, businesses aim to ensure that the vast majority of their sales are collected in a timely manner, reducing the risk of bad debts and improving their overall financial health. Lower percentages indicate a healthier accounts receivable situation, allowing for better cash management and operational efficiency. This expectation is critical for a Service Sales Representative, as it underscores the importance of maintaining effective customer relationships and ensuring timely payment for services rendered.