Learn the most effective ways to manage credit, accounts receivable and debt collection within any business or organization. This practical 2-day training course will show you how to improve your organization’s processes to increase the efficiency of credit collection. You will understand the types of available customer data, why accounts become overdue, and how to detect early warning signs.
A sizable share of a company’s working capital is tied up in Accounts Receivable (AR) and this poses a high liquidity risk. In this course, we expand your knowledge and expertise in AR. This will enable you and your organization to manage your accounts receivable effectively without compromising your credit sales.
We look at how to best deal with customer excuses and manage disputed accounts correctly, and how to successfully negotiate repayment arrangements.
In this course, we’re going through all the basics. Using a ‘ground-up’ approach, we’ll be covering topics such as approving credit, the billing process, collecting money, customer service, handling deductions, legal considerations, bankruptcy, as well as many other important topics.
You might be interested in another Finance and Accounting courses as a next step.
This course is accredited by NASBA.
YOU WILL LEARN HOW TO
This course demonstrates theoretical and practical core topics in addition to introducing Excel in managing accounts receivable. The course also features role-playing and presentations by participants.
By the end of the course, participants will be able to:
-Develop effective credit policies that meet a company’s objectives
-Use billing best practices techniques
-Employ effective collection policies
-Partner with the sales force for the benefit of the company
-Evaluate the accounts receivable process and implement best practices
-Apply tools and techniques to monitor AR performance effectively
IMPORTANT COURSE INFORMATION
Participants who fully attend this course and complete the test on the last day will receive a Strategic Axis Professional Certificate (SAPC). SAPC certificates are regionally recognized and can be quite valuable when applying for more senior roles within the organization or outside.
Professional Credits
This course is worth 25 NASBA CPEs.
COURSE OUTLINE
Credit department responsibility
Factors affecting credit policies
The five Cs of credit
Non-financial factors affecting credit decision
Outline of credit policy:
Credit department mission
Credit department objectives
Roles and responsibilities
Procedures
Measuring results
Review new accounts
Re-evaluate existing accounts
Financial statements: what to look for
Analyzing selected financial ratios
Setting the credit limit
Establishing a profitable relationship with the customer
Meeting the needs of the customer
Credit department responsibility
Factors affecting credit policies
The five Cs of credit
Non-financial factors affecting credit decision
Outline of credit policy:
Credit department mission
Credit department objectives
Roles and responsibilities
Procedures
Measuring results
Review new accounts
Re-evaluate existing accounts
Financial statements: what to look for
Analyzing selected financial ratios
Setting the credit limit
Establishing a profitable relationship with the customer
Meeting the needs of the customer
Module 2: The Billing Process
An efficient billing process means faster collection
Preventing the fatal mistake: sending the bill with errors
The use of technology
Impact of up-front operations on billing
Best practices in billing
Module 3: You Made the Sale, It’s time to Collect your Money
Cash: it is worth your efforts
Tips, techniques, and guidelines for faster collection
Importance of setting a collection policy
Using different collection approaches
Strategies in dispute management
Best practices in collection
Accounts receivable factoring, pledging, and assignment
Module 4: The Relationship Between Sales and Credit
Module 5: Accounts Receivable Process Analysis
Improving the quality of accounts receivable
Aging of accounts receivable and bad-debts reserves
Alternatives in computing bad-debt
Reducing bad-debt write-offs
Calculating accounts receivable turnover
Calculating Days Sales Outstanding (DSO)
Calculating Best Possible Days Sales Outstanding (BPDSO)
Collection Effectiveness Index (CEI)
Analyzing the operating and cash cycles
Managing AR through portfolio strategy
Analyzing the size, composition, and complexity of the AR portfolio
Segmenting the portfolio
Formulating an approach for specific segments
Module 6: Staying in Control
Internal controls in AR processes
AR and the monthly closing of accounts
Outsourcing of accounts receivable functions
