Accounts Receivable Management and Development of Credit Policies Course

Purpose

All of the sales you made are converted into actual funds and cash in the company through accounts receivable. As a result, it is a crucial component of any business, and it is crucial to have a thorough understanding of the accounts receivable function. Increase the turnover of your accounts receivable, accelerate cash collection, and implement industry-leading procedures.

We will learn the fundamentals of accounts receivable, the accounts receivable cycle, best practices, fraud prevention, collection techniques, and long-term relationships in this course.

Objectives:

  • Describe how Accounts Receivable (AR) works and what it does for businesses.
  • Improve the efficiency of the accounts receivable process.
  • Use strategies and tools to efficiently track AR performance.
  • Create sound credit rules that support the goals of the business.

 

Program Outline

Topic 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

Topic Two: The Billing Process

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

Topic 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

Topic 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

Topic 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