Managing the Cash Cycle: Accounts Receivable & Payable Best Practices

The importance of the cash cycle coming from the fact that moving cash-generating profit, so as much as you improve the cash cycle, as much as you get more profit. Accounts receivable and payables best practices playing the main role in improving the cash cycle.

 

  • Work effectively with the fundamentals of accounts payable, accounts receivable, financial accounting, and the supply chain
  • Understand and apply the fundamentals of effective transactional management systems
  • Review and comment on payment methods and cash management
  • Understand the need to incorporate risk and uncertainty into transactional processing and cash flow management
  • Identify best practice across all industries
  • Finance Executives
  • Accountants
  • Others who are working within Transactional Finance, Accounts Payable or Accounts Receivable process or who wish to develop a practical toolkit to complement their existing professional or technical skills

 

  • 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
  • Identifying underperforming areas to increase customer satisfaction

 

  • Terms of trading
  • Tools and techniques of financial analysis: ratios; trends; common size analysis
  • The best performance measure – cash or profit?
  • Financial distress and the Altman’s Z score-type analyses
  • Trend analysis
  • Value-added analysis of the financial statement

 

  • Identifying effective “pre-delinquency” collection campaigns
  • Defining “post-delinquency” activities
  • Customer sensitive collection strategies
  • Collection techniques and letter cycles
  • Appropriate internal and external escalation steps
  • Using workflow management to maximize collector performance

 

  • 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

 

  • 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

 

  • Accounting and financial information: Accounts Payable in context
  • Sources of finance
  • The supply chain
  • Financial position and financial performance
  • Cash flow and Working Capital
  • Why is cash flow so important?

  • Defining Best Practice in AP
  • Moving beyond P2P
  • Managing Risk
  • Principles of Best Practice
  • End to End AP Process
  • Defining the issues in Accounts Payable

  • Invoice Handling and Approval Processes
  • Verifying invoice data
  • Paying “low value” items
  • How to avoid duplicate payments
  • Making the best use of staff time: limiting telephone calls to AP
  • Does Petty cash management belong in Accounts Payable?

 

  • Master Vendor File Management – getting it right from the start
  • Travel & Entertainment
  • Policy management
  • Cash advances and employee reimbursement
  • Process improvement through imaging and workflow
  • Using the internet for AP effectiveness

 

  • Communications & Customer Relations
  • Payments status information for vendors and internal customers
  • Improving Procure to Pay(P2P)Cycle
  • Payments and Payment Solutions: Accounts Payable or Treasury

 

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