Credit Todays Best Practices For Credit, Collections, and Accounts Receivable Management


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Home | Best Practices

Credit Today's Best Practices For Credit, Collections, and Accounts Receivable Management

Here you'll find Credit Today's exclusive Best Practices for procedures throughout the entire order-to-cash process, including credit, collections and A/R!

The Urgency of Invoice Accuracy and How to Ensure It
By Dave Schmidt
One of the best things you can do in credit is to ensure your invoices are accurate. This month's Best Practices Feature focuses on best practices in invoicing: why that's so important, what the best practices are; how, specifically you can get there; what to measure to ensure you stay there. Gen . . . keep reading

Best Practices, Installment IX - Use Automated Systems to Electronically Receive and Post Customer Payments
By David Schmidt
Manual remittance processing is slow and labor intensive. The larger your invoice volume and the subsequent number of customer payments, the greater your remittance processing burden. As a consequence, many companies find it difficult to stay current in terms of cash posting, which slows down collec . . . keep reading

Best Practices Series: Installment VIII - Implement Systems to Accommodate All Types of Payment Formats
Making it easier for customers to remit what they owe has benefits that extend well beyond the accounts receivable function. Vendors recognized by their customers as being easy to do business with should, as a result, realize increased sales. If it is difficult to do business with your firm, the ten . . . keep reading

The Best Practice Series: Installment VII--Prioritize Collections
Prioritize Collections Time is wasted when collectors must review their calendar or tickler file, an aged trial balance, and the latest lockbox details to determine who they should contact next. As is only natural, collectors also tend to avoid initiating tough calls and instead work on . . . keep reading

The Best Practice Series: Installment 6: Treatment Plans Should Address All of the Collection And Dispute Scenarios in Your Receivables Portfolio
Because no two customers are the same, it stands to reason that you need to treat them differently when collection efforts are required. Likewise, large and small balances due should be approached differently to ensure optimal collection efficiency and effectiveness. Collection strategies enable you to tailor your treatment of the different customer groups in your receivables portfolio. Collection strategies consist of a sequence of action steps (tactics) designed to address a specific collection scenario. They provide collectors with a proven roadmap to follow based on customer type and amount outstanding. . . . keep reading

The Best Practice Series: Installment 5 -Optimizing the Risk/Reward Equation and Increasing Efficiency with Credit Scoring
Credit scores are integral to consumer credit and collections but not with trade receivables management. This is less a functional concern than one involving adaptation to change and new technology. As companies automate receivables, the use of credit scores becomes much more of a practical reality. . . . keep reading

The Best Practice Series: Installment 4 - Monitoring Customer Account Activity
Because risk is never static, every portfolio of accounts receivable is a dynamic entity. Risk changes with each payment and purchase not just on an account level but also on a portfolio level, as you evaluate each customer's characteristics in comparison to those of their peers. Risk also changes . . . keep reading

The Best Practice Series: Installment 3: Base New Customer Credit Application Processing on Distribution Channels and Anticipated Exposure
No two customers are alike, and the differences are even more pronounced if your customers come from different industries. Even the creditor serving a single industry needs to establish separate protocols for dealing with the differences in their customer base - large vs. small, solid vs. risky, hig . . . keep reading

The Best Practice Series, Part 2: Provide Customers with Easy Access to your Credit Department and Information About Their Accounts
Customers who make the effort to contact the credit department are customers who will probably pay. Good intentions are implicit in their actions. But if they are calling to ask about problems or to get information, they will delay paying if they: Cannot reach the person who handles their . . . keep reading

The Best Practice Series for Accounts Receivable, Credit And Collections
By Dave Schmidt
While the objectives of receivables, credit and collections management may be similar from industry to industry and company to company, there remains a great deal of diversity in carrying them out. That's why best practice guidelines should provide a framework that identifies key principles and succ . . . keep reading

Deduction and Dispute Best Practices: Thirteen Best Practice Steps To Implement
Deduction and dispute handling is a critical receivables management function. Not managed properly, deductions can sap credit department productivity and severely dampen performance. The problem stems is that deduction and dispute resolution consumes considerable resources with only minimal returns . . . keep reading

Sixteen Requirements for Successful Receivables and Collection Management Technology Implementations

One of the most daunting tasks credit professionals face is the implementation of new technologies. Implementing new software tools is fraught with hidden traps and unintended consequences that can frustrate your efforts. There are several reasons technology can be such a challenge: . . . keep reading

Five Risks You Can Target With Best Practices
By Bob Scheufler, CCE

In today's business environment managing risk and improving cash flow are more challenging then ever. With bankruptcy rates rising, the risk of incurring substantial losses is greater than ever. While economic pressures and business practices are causing companies to pay slower, there is a greater focus on increasing cash flow. Credit departments are being asked to do more with less without assuming additional risk.In response to these trends, many credit professionals are unfortunately becoming more reactive as opposed to being proactive, which is strategically preferable. Every credit professional should be on the lookout for opportunities to implement proven best practices throughout the entire order-to-cash process. To help you on your journey, here are five common pitfalls that can be easily avoided by upgrading your practices. . . . keep reading

Best Practices in Billing
One of the best ways to reduce DSO is to make sure your invoicing processes are rock solid. If you haven't reviewed your own procedures lately, here is Credit Today Editorial Advisory Board Member Bob Shultz's (www.QuoteToCash.biz) list of best practices for invoicing. It's the format . . . Most bi . . . keep reading

This month's topic: Processing of Credit Applications

Click here to participate! We're examining:

What information is being captured on credit applications
What additional information is being requested during the credit app process (such as personal guarantees, financial statements, resale certificates, etc.)
What the primary challenges are relative to the processing of credit apps