Accounts Receivable Management

Accounts receivable is a critical asset of any organization. Once viewed as a basic function, successful organizations have come to realize the importance of providing continual improvement to this vital function and that by doing so it can lead to significant financial and non-financial gains for the organization.

This seminar will provide information on collection activities, types of debtors, payment/non-payment issues and how to establish a positive dialogue. Through interactive role play cases, that contain collection challenges requiring the participants to analyse and formulate collection strategies and resolutions, participants will gain knowledge and understanding of this important function.

Training Objectives

By the end of the programme, participants will have learnt:

• The fundamentals of collection activity
• Understand the psychology regarding the 4 types of debtors
• How to respond to reasons for non-payment
• How to resolve problems preventing payment
• How to handle difficult conversations
• How to reach an equitable conclusion
• How to encourage a positive dialogue

Training Outline

The Accounts Receivable Function: The four primary components that make up the AR function

• The difference between policies and procedures
• The internal and external relationships
• The pros and cons of centralization and decentralization
• Ideal AR candidate qualifications

Risk Management (Part 1): The function and four elements of credit

• Credit application vs. credit agreement
• The types of business entities
• The purpose and sources of credit information
• The types of credit analysis

Risk Management (Part 2): Secured vs. unsecured credit

• The types of financial analysis
• The differences between a credit line and a credit limit
• The methods used to identify risk
• The methods used to minimize risk
• The methods used to determine the amount of risk to take

Collection and Deductions (Part 1):  The function of collections:

• When to begin collecting
• The methods of collecting
• Who to contact for payment

Collection and Deductions (Part 2):  The types of deductions

• Obtaining assistance from internal sources
• When to seek outside assistance
• The steps in the litigation process
• The steps in the bankruptcy process

Cash Application: The function of cash application

• Sources of payments
• Discounts
• Payment processing
• Batching and posting remittances
• Unidentified remittances
• Post-dated cheques

Training Style

The programme is designed to deliver knowledge and enhance participants’ skills via short lectures, case-studies, practical examples, real-life simulations.

Participants will also benefit from customised feedback at the end of the programme and take away the knowledge gained to be transferred at their workplace.

Most of the training’s time will be invested in analysing a real-life case study that will help participants understand how to solve problems in similar situations.

CPD Recognition

This programme may be approved for CPD units in Accounting Standards. Eligibility criteria and CPD Units are verified directly by your association, regulator or other bodies which you hold membership.

Professionals requiring CPD units to meet the education requirements for the ICPAC licence renewal, and/or for maintaining other professional memberships/certifications which accept CPD in Accounting/Auditing Services, are advised to consider the training subjects in our CPD in Accounting Standards category.

Who Should Attend

The programme is ideal for:

• Credit Managers & Staff
• Collection Managers & Staff
• Accounting Managers
• Sales staff
• And anyone who has a direct or indirect responsibility for maintaining their company’s cash flow