Certified Accounts Receivable Professional

Course overview

Course outline

1. 1Day 1: Credit Policies Management & Outline of a credit policy

   • Credit Policies Management
   • Credit department responsibility
   • Factors affecting credit policies
   • The five Cs of credit
   • Non-financial factors affecting credit decisions
   • Outline of a credit policy
   • Credit department mission
   • Credit department objectives
   • Roles and responsibilities
   • Procedures
   • Measuring results
   • Reviewing new accounts
   • Re-evaluating 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
2. 2Day 2: 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
3. 3Day 3: You Made the Sale; Now Collect Your Money & The Relationship Between Sales and Credit

   • 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 relationships
   • Improving relationships with sales
   • Customers not meeting credit standards
   • Role of sales in issuing credit and in collection
4. 4Day 4: Accounts Receivable Process Analysis

   • Improving the quality of Accounts Receivable
   • Aging of Accounts Receivable and bad-debt reserves
   • Alternatives to 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
5. 5Day 5: Staying in Control

   • Internal controls in AR processes
   • AR and the monthly closing of accounts
   • Outsourcing of Accounts Receivable functions
   • AR and working capital management
   • Factoring of accounts receivable