Course description
Accounts Receivable (AR) is any money your customers owe you for goods or services they purchased from you in the past. This money is typically collected after a few weeks and is recorded as an asset on your companies balance sheet. You use accounts receivable as part of accrual basis accounting.
The management of the accounts receivables (debtors) of an organization is essentially just one aspect of the management of the cash flow of that organization. Since organizations cannot survive without adequate cash flows, it follows that the management of accounts receivable is a vital aspect of cash flow management.
By attending this course Participants will gain both theoretical and practical knowledge about Accounts Receivable. The emphasis is on the practical application of the topics and as a result, the participant will go back to the workplace with both the ability and the confidence to apply the techniques learned to their duties.
Upcoming start dates
Upcoming start dates
Suitability - Who should attend?
This Accounts Receivable - Planning, Organising and Achieving Best Practice Training Course ideal for:
- Accounts receivable managers
- Accounts receivable staff
- Revenue accountants
- Billing and collection officers
- Accounts receivable specialists
- Professional accounting and finance staff who interact with accounts receivable operators
Outcome / Qualification etc.
By the end of the Accounts Receivable - Planning, Organising and Achieving Best Practice Training Course, you will be able to:
- Learn the fundamentals of accounts receivable systems
- Analyse the need to incorporate risk and uncertainty in to accounts receivable analysis
- Identify the best practice across all industries
- Discuss how to work effectively with the fundamentals of accounts receivable in their organization
- Review and comment on collection methods and cash management
- Work effectively with the fundamentals of accounts receivable, financial.
- Accounting and working capital optimisation.
- Understand and apply the fundamentals of Accounts Receivable systems.
- Review and comment on collection methods and cash management.
- Analyse the need to incorporate risk and uncertainty in to accounts receivable analysis.
- Identify best practice across all industries.
Training Course Content
Day 1
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.
Day 2
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.
Day 3
Developing effective strategies tomaximiseCash 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.
Day 4
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.
Day 5
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.
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