If a company’s existence is measured by revenue, then its life blood must be how well it manages accounts receivable. Many business executives say that a sale isn’t a sale until the money has been collected.

This course examines best practices in accounts receivable management. Accounts receivable management is associated with both credit and collections. These important functional areas work with sales as well as treasury and bank vendors to ensure the maximum realization of cash from sales revenue.

While a good credit function holds the key to “safe sales”, those sales for which you will be paid, the best accounts receivable management will also find a way to take riskier sales and minimize that risk wherever possible through credit insurance or other arrangements. Best practices dictate that sales and accounts receivable work hand-in-hand to maximize good sales opportunities, ensure that order processing and invoicing is controlled and timely and that pricing is up-to-date and accurate.

A properly managed accounts receivable function also has a significant impact on the organization’s overall cash flow. Best practices dictate that accounts receivable management ensures that there are diverse customer payment methods available, payments are processed timely and accurately and the process is controlled to ensure that all amounts due are timely paid.

This course explores each functional area, starting with the sales function, and the best practices that relate to accounts receivable management. Credit and collections will each be discussed followed by accounts receivable management administrative best practices, which will include portfolio review, internal controls and payment application. Banking best practices as they relate to accounts receivable management will be explored last.