Who should attend:
This program provides a user-friendly environment to develop the knowledge and techniques related to accounts payable that are valuable to:
- 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.
Course Objectives:
- Develop effective credit policies that meet company’s objectives.
- Use financial and non-financial analysis to assist in making the credit decision.
- Define the function of Accounts Receivable (AR)and its role in organizations.
- Maintain effective collection policy.
- Evaluate the Accounts Receivable process and implement best practices.
- Apply tools and techniques to effectively monitor AR performance.
Training Methodology:
The program will provide the theoretical background and techniques that underpin the organisation and management of accounts payable and its planning and organising. It will provide a real world practical context by incorporating worked examples and case studies that delegates will see how theory applies in practice and can discuss the various issues raised.
Day 1: Credit Policies Management
- Credit Department Responsibility.
- Factors Affecting Credit Policies.
- The Five Cs 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.
- Analyzing Selected Financial Ratios.
- Setting the Credit Limit.
- Establishing a Profitable Relationship with the Customer.
- Meeting the Needs of the Customer.
Day 2: 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.
Day 3: 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.
- Breaking the Ice.
- Maintaining Credit-Sales Relationship.
- Role of Sales in Issuing Credit and in Collection.
Day 4: 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 AR Portfolio.
- Segment the Portfolio.
- Formulating an Approach for Specific Segments.
Day 5: Keeping in Control
- Internal Controls in AR Processes.
- AR and the Monthly Closing of Accounts.
- Outsourcing of Accounts Receivable Functions.
- Case Study.
PLACE: London (UK)
VENUE (TBC): INDUSTRIOUS (1 and 2, 245 Hammersmith Road Floors, London W6 8PW)
LANGUAGE: English