COURSE OVERVIEW
What is the role of account receivable? The main responsibility of an employee who works as an Accounts Receivable is to make sure their company receives payments for goods and services and records these transactions accordingly.
An Accounts Receivable job description will involve securing revenue by verifying, confirming and then posting receipts and resolving any discrepancies.
What is a credit policy? Simply put, a credit policy is a set of guidelines that clearly specifies credit and payment terms for customers and creates a clear course of action for late payments. It defines and states the limits to be set on outstanding credit accounts.
It outlines the steps or procedures used to deal with delinquent accounts. How credit policy is formulated and executed in receivables management? The credit policy must be determined by instituting a risk-return trade-off between the profits on incremental sales that occur owing to the credit being extended on one hand and the cost of bearing those debtors and bad debt losses on the other.
This Zoe course will empower you to know the function of Accounts Receivable (AR) and its role in the organization. You will also get to practice on how to run the Accounts Receivable process more efficiently by applying tools and techniques to effectively monitor AR performance.
Course Objectives
Upon completing this Accounts Receivable and Credit Policy in Receivable Management course successfully, participants will be able to:
- Establish effective credit policies that meet a company’s objectives
- Use billing best practices and techniques
- Employ effective collection policies
- Partner and associate with the sales force for the benefit of the company
- Evaluate and assess the accounts receivable process and implement best practices
- Practice and apply tools & techniques to effectively monitor AR performance
TRAINING METHODOLOGY
This is a collaborative Accounts Receivable and Credit Policy in Receivable Management training program and will consist of the following training methodologies:
- Lectures
- Seminars & Presentations
- Group Discussions
- Assignments
- Case Studies & Functional Exercises
Zoe Talent Solutions follows the ‘Do-Review-Learn-Apply’ model.
Organisational Benefits
Companies who send their employees to participate in this Accounts Receivable and Credit Policy in Receivable Management course can benefit in the following ways:
- Managing accounts receivable effectively
- Thoughtfully considering the implications of credit decision and policy
- Adopting efficient billing techniques
- Monetizing accounts receivable
Personal Benefits
The participants of this Accounts Receivable and Credit Policy in Receivable Management course can benefit in the following ways:
- Utilize Excel functions
- Prepare accounts receivable aging report
- Analyse and use different collection techniques
- Perform accounts receivable analysis
WHO SHOULD ATTEND?
- Accounts Receivable Department Managers
- Credit Managers
- AR Specialists
- AR Staff
- AR and Revenue Accountants
- Credit Officers
- Billing and Collection Clerks
- Professionals working in Accounting, Finance, Operations, and Sales who interact and engage with the accounts receivable and credit department
COURSE OUTLINE
Module 1: Credit Policy
- Mission statement of Credit Department
- Roles & Responsibilities
- Credit Controller
- Manager- Collection
- Manager- Receivables
- Credit Evaluation
- Approvals as per Delegation of Authority
- Policy on Credit Cards
- Slow-Moving Accounts
- Policy on Provisioning
- Policy on Bad Debts
- Approval by the Board
Module 2: Know your Customer
- Legal Status of the company
- Financial Standing
- Financial Statements
- Third Party Confirmations
- Anticipated Turnover
- Credit Requirement
- Setting Credit Limit
Module 3: Minimizing Risk
- Customer Advance
- Bank Guarantee
- Insurance Guarantee
Module 4: Invoicing System
- Receiving Orders
- Credit Limit Check
- Delivery
- Acknowledgement of Receipt of Goods
- Invoice
Module 5: Recording
- Revenue Recognition
- Posting Sales Invoices
- Maintenance of Sub Ledgers
- A.T. Accounting
- Monthly Reconciliation of Sub Ledgers
- Regular Confirmation of Balances
Module 6: Collection of Debts
- Modes of Collection
- Separate Bank Accounts for Revenue Collections
- Daily Postings of Collection
- Daily Bank Reconciliation of Revenue Accounts
Module 7: Internal Controls
- Regular Review of Debtors Reports
- Age Analysis of Debtors
- Review of Utilization of Credit Limits
- Changes in Credit Limits with Due Approval
- Setting Targets and Tracking Performance
- Creating Action-Oriented Reports
- Measuring Team/Individual Performance
- The People Plan – Managing Performance and Motivating the Team
- Developing your Personal Action Plan
Module 8: Addressing Delays in Collection
- Consistent Follow-up
- Personal Visits
- Regular Communication
- Identify Delaying Tactics
- Blockage of Account
- Legal Action, if required
Module 9: Provisioning
- Company’s Provisioning Policy
- Debt write-off Policy
- Accounting for Post-Provisioning
- Accounting for Post- Write off
Module 10: Case Study
- Complete Cycle of Accounts Receivable
