Accounts Receivable and Credit Policies Management

Course Overview

This program can modify you to make up-to-date credit policies below the steerage of strategies and descriptions provided. The educational program define is up to this point and pertinent to marketplace necessities, so line of work well to all or any analytical prediction of training wants within the specified space. a customized proposal can even be organized, to suit the training demand of your team.

Who Should Attend?

Accounts Receivable (AR) department managers, credit managers, AR staff, AR and revenue accountants, credit officers, billing and collection clerks, AR specialists, and professionals in accounting, finance, operations and sales who interact with Accounts Receivable and Credit Department.

Program Outline

• Credit Policies Management
• Credit Department Responsibility
• Factors Affecting Credit Policies
• The Five C’s of Credit
• Non Financial Factors Affecting Credit Decision
• Outline of a 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
• Analysing Selected Financial Ratios
• Setting the Credit Limit
• Establishing a Profitable Relationship with the Customer
• Meeting the Needs of the Customer
• The Billing Process
• 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
• You Made the Sale, It’s Time to Collect Your Money
• Cash: It’s Worth your Efforts
• Tips, Techniques and Guidelines for Faster Collection
• Importance of Setting a Collection Policy
• Using Different Approaches in Collection
• Strategies in Dispute Management
• Best Practices in Collection
• The Relationship Between Sales and Credit
• Breaking the Ice
• Maintaining Credit-Sales Relationship
• Role of Sales in Issuing Credit and in Collection
• 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)
• Analysing the Operating and Cash Cycles
• Managing AR through Portfolio Strategy
• Analysing the Size, Composition and Complexity of AR Portfolio
• Segment the Portfolio
• Formulate an Approach for Specific Segments
• Keeping in Control
• Internal Controls in AR Processes
• AR and the Monthly Closing of Accounts
• Outsourcing of Accounts Receivable Functions

Program Objectives

By the top of the program, participants are ready to:

• Develop effective credit policies that meet company’s objectives
• Use money and non-financial analysis to help in creating the credit call
• outline the perform of assets (AR) and its role in organizations
• Maintain effective collection policy to confirm changing gifts into money
• assess the assets method and implement best practices
• Apply tools and techniques to effectively monitor AR performance