Invoice for collection – Collection float
The collection float is the time spent collecting receivables.
The Invoice Float is the sum total of the time taken by Invoice Float; Mail float; Processing float and availability float
1. Bill float is the time between delivery of goods or services to the customer and receipt of the invoice by the customer, usually by mail. This is the time it takes for a company to register its provision of service or
goods, then produce and send an invoice.
2. Mail flutter is the time taken by the postal or courier service to deliver the customer’s payment.
3. The processing float is the period between receipt of payment and its deposit in the company’s bank account and includes the time required to register the payment in the accounting system.
4. Availability float is the time it takes for the deposited check to clear the client’s account and for the correct funds to be available to the business for disbursement.