Description
Accounts Receivable & Credit Management
Course Duration:
5 Days
Course Level:
Foundation
Target Audience:
- Accounts receivable officers and clerks who seek to learn Accounts Receivable & Credit Management
- Credit managers and credit analysts
- Finance and accounting professionals
- Collection agents and debt recovery specialists who seek to learn Accounts Receivable & Credit Management
- Business owners and entrepreneurs managing credit and receivables
Personal Impact:
- Enhance your ability to manage accounts receivable and optimize cash flow
- Gain practical skills in assessing creditworthiness and setting appropriate credit limits
- Strengthen your debt recovery strategies and improve customer communication
Organizational Impact:
- Improve cash flow and working capital management through effective receivables handling
- Minimize bad debts and reduce Days Sales Outstanding (DSO)
- Establish and enforce robust credit policies that drive sales while managing risk
Course Objectives:
By the end of this Accounts Receivable & Credit Management course, participants will be able to:
- Effectively manage the accounts receivable cycle, from invoicing to collections
- Assess and manage credit risks using well-established credit policies
- Develop and implement credit terms that support growth while minimizing financial risk
- Apply collection strategies to reduce overdue payments and prevent bad debts
- Communicate effectively with customers to improve collections and strengthen relationships
Module 1: Foundations of Accounts Receivable and Credit Management
- Introduction to the accounts receivable process
- Understanding the connection between AR, cash flow, and working capital
- Key roles and responsibilities in managing receivables and credit
- Practical Exercise: Mapping the AR and credit lifecycle in a typical organization
Module 2: Credit Risk Assessment and Policy Formulation
- Techniques for evaluating customer creditworthiness
- Setting credit limits and terms based on risk assessments
- Developing and enforcing effective credit policies
- Practical Exercise: Crafting a credit policy tailored to a business scenario
Module 3: Effective Invoicing, Collections, and Dispute Resolution
- Best practices for invoicing to ensure timely payments
- Strategies for collecting overdue accounts and minimizing bad debt
- Managing customer disputes and resolving payment delays
- Case Study: Successful collection strategies for reducing overdue accounts. In Accounts Receivable & Credit Management
Module 4: Monitoring, Reporting, and Optimizing Receivables
- Monitoring AR balances using aging reports
- Calculating and improving Days Sales Outstanding (DSO)
- Reporting AR performance to management and stakeholders
- Practical Exercise: Utilizing AR reports to drive effective collections
Module 5: Technology and Automation in AR and Credit Management
- Implementing ERP systems and automation tools for AR processes
- Integrating AR management with credit policies and finance systems
- Exploring the benefits of electronic invoicing and automated reminders
- Real-Life Project: Designing and implementing an automated AR and credit management system. This is the last module in Accounts Receivable & Credit Management
