Course Outline
- 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
- The billing process
- An 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
- You made the sale, now collect your money
- Cash: it is worth your efforts
- Tips, techniques and guidelines for faster collection
- Importance of setting a collection policy
- Using different collection approaches
- Strategies in dispute management
- Best practices in collection
- Accounts receivable factoring, pledging and assignment
- The relationship between sales and credit
- Breaking the ice
- Maintaining credit sales relationship
- Role of sales in issuing credit and in collection
- 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 the AR portfolio
- Segmenting the portfolio
- Formulating an approach for specific segments
- Staying in control
- Internal controls in AR processes
- AR and the monthly closing of accounts
- Outsourcing of accounts receivable functions
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