Course Description
This highly interactive training course on Billing and Credit Policies Management will assist the participants in keeping up-to-date with current accounts receivable management principles and international guidelines, while at the same time stressing the importance of and providing valuable advice on the most critical areas of credit risk management.
What Do Participants Learn?
- Develop effective credit policies that meet a company’s objectives
- Use billing best practices techniques
- Employ effective collection policies
- Partner with the sales force for the benefit of the company
- Evaluate the accounts receivable process and implement best practices
- Apply tools and techniques to effectively monitor AR performance
Who Should Attend?
Professionals in the field of finance and accounting, managers, supervisors, and finance professionals who need to understand, apply and implement practical tools to enable them to run the finance and accounting departments more efficiently.
What Will the Learning Experience Include?
Phase: 1
Introduce
- Comprehensive pre-program activities include:
- Web-based information forms & surveys completed by attendee.
- Direct consultation with the attendee about the expectations.
- During the training, participants engage in data, activities, and conversations that lead to insight and knowledge.
- Participants learn from expert trainers who have both academic and business experiences.
- Highly applicable training content & instructive activities for adding depth to training topics.
- **A half-day site visit for integrating the experience & plan next steps. Opportunities to provide connections, ideas & support.
Phase: 2
Explore & Practice
Phase: 3
Apply
- Apply & sustain the learning experience by using this ongoing support:
- To ensure participant has new skills or behavior progress.
- Optional, fee-based mentoring & coaching with the trainer.
- Training materials & additional documents (e-books, pdf files, presentations and articles)
- Evaluate your training experience by giving us feedbacks and help us to reach our organizational goals.
- Participant's Evaluation
- Trainer's Evaluation
Phase: 4
EVALUATE
Section One: Establishing Credit Policies
- What is the purpose of credit?
- Outline of a credit policy:
- Mission
- Department objectives
- Roles and responsibilities
- Procedures
- Measuring results
- Building a Credit Policy from the first principles
- Identifying roles and responsibilities: introducing a control framework
- Using Process Mapping to identify potential areas of conflict
Section Two: Credit Risk Assessment: Establishing the Criteria and Authority Levels
- Credit risk assessment: establishing the criteria and authority levels
- Establishing credit worthiness: intent and ability to pay
- Analysing financial statements to determine company health
- Other sources of credit information
- Establishing Credit Limits
- Offsetting credit risk: guarantees, bonds and insurance options
- Key data required for the Customer Master File
- Credit worthiness as a basis for debtor classification
Section Three: Billing Process Best Practices
- Getting it right first time: Billing process defined
- Authorisation levels, audit and control checks
- Billing frequency and reconciliations
- Accounting for VAT
- Using technology to leverage the billing process
- Benefits of an integrated Billing / Accounts Receivable solution
- Third-Party solutions, including Electronic Data Interchange (EDI)
Section Four: Managing the Collection Process
- Defining effective collection strategies based upon debtor value, risk and behaviour
- Reviewing strategy effectiveness and establishing triggers for review
- Automating the collection process: Leveraging workflow management tools
- Engaging with “internal customers” to manage debtor performance
- Aged analysis the debtor ledger using Microsoft Excel®
- Defining strategies to manage – and resolve – customer disputes
- Authorisation of escalation measures: litigation or insolvency
Section Five: Monitoring Credit Performance
- Reviewing debtor performance
- Tracking credit worthiness and updating risk ratings
- Analysing debtor risk by category using Microsoft Excel®
- Collectability
- Process effectiveness
- Debt "at risk"
- Provisions for “Bad” and "Uncollectable" debt
- Action Plan: Review existing Credit Policies or Create a Fresh Set of Policies