Managing and Organizing Accounts Receivable
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Managing and Organizing Accounts Receivable Course
Introduction:
In the pursuit of increased revenue and profitability, effective credit and collections management plays a crucial role in maximizing operational cash flow. However, granting credit carries inherent risks, such as bad debts, delays, uncertainty, and potential strain on business relationships. As a result, companies are continuously seeking improved solutions and strategies to manage credit effectively, recognizing its importance as a sales tool in today's competitive business environment.
With the recent credit crisis impacting the global economy, coupled with fluctuating interest rates, intensifying competition, and growing uncertainty, the task of managing credit and collections has become increasingly challenging. These challenges cut across all industries, making effective credit management even more critical.
In light of these circumstances, organizations face the pressing need to develop robust credit management practices. This includes implementing sound credit policies, assessing creditworthiness accurately, establishing effective collection strategies, and mitigating credit risks. By doing so, companies can navigate the complexities of credit management and maintain healthy financial operations.
This course addresses the evolving challenges of credit management and collections. It provides participants with valuable insights and practical strategies to manage credit effectively in their respective industries. By attending this course, you will gain a deeper understanding of credit management best practices, enabling you to make informed decisions, mitigate risks, and maintain strong business relationships.
Furthermore, this course equips participants with the tools and techniques necessary to develop and implement effective credit policies, assess creditworthiness, and optimize collection strategies. By mastering these skills, you will be better equipped to navigate the dynamic landscape of credit management, ensuring your organization's financial stability and success.
Overall, this course helps organizations rise to the challenges of credit management, empowering participants to make informed decisions that maximize cash flow, minimize risks, and foster positive business outcomes.
Course Objectives:
This truly complete course provides the delegate with an effective collections tool-kit and presents complex concepts in easily understood modules. This program is unique in two ways:
- The comprehensive approach to the subject matter
- The instructor’s interactive and engaging approach to facilitate
Who Should Attend?
This course provides a user-friendly environment to develop the knowledge and techniques related to accounts receivable and is valuable for:
- Finance Managers
- Accountants
- Credit Control
- Accounts Receivable staff
- and others who are working within an accounts receivable process or who wish to develop a practical toolkit to complement their existing professional or technical skills
Course Outlines:
An Introduction to Accounts Receivable
- Working Capital and Cash Management
- Managing working capital
- Cash management and the bank facility (line of credit)
- Understanding “the cost of credit”
- Why credit management is important to the survival of businesses
- The ‘order to cash’ process
- Understanding “risk” in “credit”
- Accounts Receivable and effective customer service
- Identifying underperforming areas to increase customer satisfaction
Customers and trading terms
- Terms of trading
- Customer credit evaluation
- Tools and techniques of financial analysis: ratios; trends; common size analysis
- The best performance measure – cash or profit?
- Financial distress and the Altman's Z score-type analyses
- Trend analysis
- Common size (or horizontal) trend analysis of financial statements
- Vertical trend analysis of financial statements
- Segmental analysis of financial statements
- Value-added analysis of the financial statement
Developing Effective Strategies to Maximize Cash Collection
- Identifying effective “pre-delinquency” collection campaigns
- Defining “post-delinquency” activities
- Customer-sensitive collection strategies
- Collection techniques and letter cycles
- Appropriate internal and external escalation steps
- Using workflow management to maximize collector performance
Practical Collection Tools and Techniques
- Eliminating barriers to payment
- Good practice in billing management
- Managing customer queries
- Recognizing excuses and delaying tactics
- Providing solutions to non-payment
- Litigation and recoveries
- Legal steps and enforcement
- Telephone Collection Techniques
- Preparing for the call
- Negotiation skills for successful collections
- Communicating and listening skills
- Building relationships with customers
Managing the Receivables Ledger
- Developing effective internal relationships to maximize performance
- Setting targets and tracking performance
- Managing information that dazzles
- Defining meaningful KPI’s
- Latest Developments in Accounts receivable