ACCOUNTS RECEIVABLE AND CREDIT POLICY IN RECEIVABLE MANAGEMENT

Objective:

• Develop and implement effective credit policies that support organizational objectives
• Apply billing and invoicing best practices to improve accounts receivable efficiency
• Implement effective debt collection strategies to improve cash flow and reduce overdue accounts
• Collaborate with sales and other business functions to strengthen credit management practices
• Evaluate and improve accounts receivable processes using industry best practices
• Monitor accounts receivable performance using key metrics, reporting tools, and performance management techniques

Content:

Developing Effective Credit Policies

• Creating the mission and objectives of the credit department
• Defining roles and responsibilities within credit management
• Managing the responsibilities of credit controllers and receivables managers
• Conducting credit evaluations and approvals
• Establishing credit card, provisioning, and bad debt policies
• Managing slow-moving accounts and board approval requirements

Know Your Customer (KYC) and Credit Assessment

• Verifying the legal status of customers
• Assessing financial standing and financial statements
• Using third-party confirmations during credit assessments
• Evaluating anticipated turnover and credit requirements
• Establishing appropriate customer credit limits

Credit Risk Management

• Reducing credit risk through customer advances
• Using bank guarantees to secure receivables
• Managing insurance guarantees and other credit protection measures

Invoicing and Accounts Receivable Operations

• Managing customer orders and credit limit checks
• Processing deliveries and proof of receipt
• Preparing and issuing accurate invoices
• Implementing efficient invoicing procedures

Recording and Accounts Receivable Management

• Applying revenue recognition principles
• Posting sales invoices accurately
• Maintaining accounts receivable sub-ledgers
• Performing monthly reconciliations
• Confirming customer account balances regularly

Debt Collection and Performance Monitoring

• Applying effective debt collection methods
• Managing revenue collection bank accounts
• Performing daily posting and reconciliation of collections
• Reviewing debtor reports and ageing analysis
• Monitoring credit limit utilization and approvals
• Setting performance targets and preparing action-oriented reports
• Managing team performance and developing personal action plans

Managing Delinquent Accounts

• Implementing consistent collection follow-up strategies
• Conducting customer visits and regular communication
• Identifying and responding to delaying tactics
• Managing account blockages where appropriate
• Initiating legal action when necessary

Provisioning and Bad Debt Management

• Implementing company provisioning policies
• Managing debt write-off procedures
• Accounting for post-provisioning adjustments
• Recording post-write-off transactions accurately

For Whom:

• Accounts Receivable Managers and Supervisors
• Credit Managers and Credit Officers
• Accounts Receivable Specialists and Analysts
• Billing and Collection Officers
• Accounts Receivable and Revenue Accountants
• Finance and Accounting Professionals
• Operations and Sales Professionals involved in credit and receivables management