Accounts Receivable Mgt and Development of Credit Policies Course

Overview

Introduction

Accounts Receivable is where the all the sales you made turn into actual funds and cash in the business.  As such, it is a very important part of any company, and a solid understanding of the accounts receivable function is very important.  Increase your accounts receivable turnover, collect funds quicker and put in place the best practices in the industry. 

In this course we will learn the basics of accounts receivable, the accounts receivable cycle the best practices that should be used, fraud prevention, collection methods and long-term relationship

Course Objectives

• Define the function of Accounts Receivable (AR) and its role in organizations.
• Run the Accounts Receivable process more efficiently.
• Apply tools and techniques to effectively monitor AR performance.
• Develop effective credit policies that meet company's objectives.

The Content:

Day One: Credit Policies Management

• Setting Credit Policies
• Approving the Credit
• Developing Credit Controls
• The Need for Accounts Receivable
• The Level of Accounts Receivable Companies Should Have

Day Two: The Billing Process

• Efficient Billing Process Means Faster Collection
• Preventing the Fatal Mistake: Sending the Bill with Errors
• The Use of Technology

Day Three: Collection of Money

• Cash: It's Worth your Efforts
• Techniques for Faster Collection
• Payment Processing Options
• Letter of Credit ( LC )
• Cash against documents 
•  Cheque

Day Four: The Relationship with customers

• Developing Good Working Relationships Between the Two Departments
• Involving Sales in the Collection Effort
• Payments status information to vendor
•  Communication with internal customers

Day Five: Accounts Receivable Process Analysis

• Best Practices in Accounts Receivable (AR)
• AR Process Improvement
• Improving 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)
• Collection Effectiveness Index (CEI)
• Analyzing the Operating and Cash Cycle

What you will learn

Course Objectives

• Define the function of Accounts Receivable (AR) and its role in organizations.
• Run the Accounts Receivable process more efficiently.
• Apply tools and techniques to effectively monitor AR performance.
• Develop effective credit policies that meet company's objectives.