The cash flow problem is a key concern for project managers (PM). Although this problem is well studied, existing research overlooks investigation into variance within the invoicing process, on both the payables end and the receivables end. Industry practitioners, however, are well aware of the challenges surrounding collection of money, and many firms devote pools of resources to this task. Often, this challenge stems from poor accounts payable processes on the side of the client firm. Moreover, with owner payments to general contractors being increasingly linked to subcontractor payments, general contractors face pressure both to process existing invoices, as well as to encourage prompt invoicing from subcontractors. This study gathers existing literature on the subject of accounts payable and receivable from both the engineering and business management fields, and discusses best practices from an academic and industry standpoint. Further, a gap analysis is also presented, comparing current industry practices with those discussed in the literature.
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