Accounts Receivable & Payable Best Practices
This Training will enable participants do Proper management of Accounts Receivables and Payables for organization. Control of the management of the accounts receivable function of an organization, is recognized as a key element for business success. It improves cash flow, establishes sound relations with debtors, and minimizes the risk of irrecoverable sales. Professional credit managers must be able to manage the full spectrum of assessment, administration and collections in any environment.
Learning Content
Module1. Accounts Receivables.
Day 1
An Introduction to Accounts Receivable
- Working Capital and Cash Management
- Understanding“the cost of credit”
- The ‘order to cash’process
- Understanding“risk” in “credit”
- Accounts Receivable and effective customer service
Credit Policy Development
- Establishing Credit Policies
- Setting credit limits
- Defining credit terms
- Credit approval process
- Credit Risk Assessment
- Analyzing customer creditworthiness
- Credit scoring models
- Monitoring credit risk
Day 2
Invoicing and Documentation
- Effective Invoicing Practices
- Clear and accurate invoices
- Timely issuance
- Invoice tracking systems
- Documentation Best Practices
- Contracts and agreements
- Purchase orders
- Legal documentation for collections
Receivables Monitoring and Reporting
- Monitoring Outstanding Receivables
- Aging schedules
- Receivables turnover ratio
- Identifying overdue account
- Receivables Monitoring and Reporting
Financial Reporting
- Generating receivables report
- Analyzing financial statements
Day 3
Customers and Trading Terms
- Terms of trading
- Tools and techniques of financial analysis:
- The best performance measures
- Financial distress and the Altman’s Z score-type analyses
- Trend analysis
- Value added analysis of financial statement
Developing Effective Strategies to Maximize Cash Collection
- Identifying effective “pre-delinquency”collection campaigns
- Defining “post-delinquency” activities
- Customer sensitive collection strategies
- Collection techniques and letter cycles
Day 4
Practical Collection Tools and Techniques
- Eliminating barriers to payment
- Recognizing excuses and delaying tactics
- Providing solutions to non-payment
- Telephone collection techniques
- Negotiation skills for successful collections
- Building relationships with customers
Day 5
Managing the Receivables Ledger
- Developing effective internal relationships to maximize performance
- Setting targets and tracking performance
- Managing information that dazzles
- Defining meaningful KPI’s
- Latest Developments in Accounts Receivable
Day 6
Technology in Receivables Management
- Automation Tools
- Introduction to receivables management software
- Benefits and features
- Implementation best practices
Data Security and Compliance
- Protecting sensitive customer information
- Compliance with data protection laws
Day 7
- Fraud Prevention and Detection
- Recognizing Common Fraud Schemes
- Invoice fraud
- Identity theft
- Red flags and warning signs
- Internal controls
- Employee training
- Regular audits
Module 2. Accounts Payable
Day 8
The Big Picture: Accounts Payable and the Financial Health of Organizations
- The Important Role of Accounts Payable (AP)
- The Meaning of Managing Accounts Payable
- The Functions of Management
- The Functions of Accounts Payable Department and Role of AP Staff
- Accounts Payable Impact on Working Capital and Cash Management
Day 9
Accounting for Accounts Payable
- Accounting Essentials for Accounts Payable
- Accounts Payable Terminology
- General Ledger and Sub-Ledger
- Month End Accounting Entries and Accruals
- Control Account Reconciliations
- Developing a Reconciliation Plan for the Sub-Ledger
Key Topics in Accounts Payable Management
- Applying Best Practices in your Organization
- Identifying Proper Internal Controls
- The Annual Audit as an Added Value
- Impact of AP Outsourcing
- Detecting Fraud in Accounts Payable
Day 10
Technology in Payables Management
- Automation and Invoice Processing Tools
- Introduction to payables management software
- Benefits and features of automation
- Implementation best practices
Auditing and Reporting
- Internal Audits and Controls
- Conducting regular payables audits
- Assessing internal controls
- Addressing audit findings
Financial Reporting
- Generating payables reports
- Analyzing financial statements
- Communicating financial health to stakeholders
Way forward After the Training
Participants will develop a work plan through the help of facilitators that stipulates application of skills acquired in improving their organizations. ASPM will monitor implementation progress after the training.
Training Evaluation:
Participants will undertake a simple assessment before the training to gauge knowledge and skills in the field and another assessment will be done after the training in-order to monitor knowledge gained through the training.
