Course Details
Course Outline
5 days course
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 under-performing 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 financial statement.
Developing effective strategies to maximise 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 work flow 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.
- Telephone Collection Techniques.
- 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.
