What is the critical first step in a government's receivables program?

Establishing invoicing and collection procedures is fundamental to a government's receivables program because it lays the groundwork for how the government communicates with its customers regarding amounts owed. This step involves creating clear, efficient processes for generating invoices and outlining the steps for collections. It ensures that there is a standard method for tracking receivables, facilitating timely billing, and following up on unpaid debts.

Having solid invoicing and collection procedures helps to minimize errors, reduces the time it takes to receive payments, and enhances cash flow. It sets the stage for a well-organized receivables management system, which is essential for maintaining the financial health of a government entity. Without effective procedures, the other aspects, such as payment methods or cash window operations, would lack the necessary structure needed to be successful.