Credit & Receivable Management | Simfotix
 
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Credit & Receivable Management

Overview
Credit function in every organization is full of risk and uncertainties. Collection department is rain bringer for organization as entire organizational functions are subservient to effective collection & recoveries. Smart collection need deliberations on the part of organization on many fronts. This workshop has a prime focus on ensuring a smooth and flawless effective operational credit management and recovery function in an organization which can convert the credit reality of company into stream of liquidity flow.
Course Outline
Dynamics of Receivable Management - Overview
  • Understanding Enterprise Collection Strategy
  • Essentials of Good Receivable Management
  • Customer Credit Profiling & Risk Review for Effective & Timely Collection
  • Credit Decision – Review from Collection Perspective
  • Know your Customer – Credit & Collection Perspective
  • Collection Strategies – Best Practices
  • Collection & Relationship Management

Exercise: Radical redesign of credit collection strategies based on enterprise credit policy, industry & economic analysis & competitor/market review.

Know your Customer – Create Recovery Paradigm
  • Customer Business & Cash Cycle Review
  • Cash Flow based Credit Management
  • Efficient Credit Management – Attention to Details
  • Common Mistakes in Credit & Collection Process
  • Business Analytics – Understand your Trends
  • Sales Operation & Credit Collection

Case Study: Review of a company data using analytical techniques to understand customer cash flow cycle & company collection history with specific client – Improvisation & Improvements

Ratios Analysis
  • This module will focus on using ratio’s focus on cash flow (account receivable as well) before testing the theory to understand how to compute and apply leverage and liquidity in credit evaluation and over all cash flow, bad debt and its provision.
  • Appreciate the degree of influence management has in determining financial results and the associated ratios
  • Define both solvent and liquid borrowers, and understand the significance of working capital

Case Study: Ratio Analysis of Client’s Financial Statement based on long term Rental/Operating Lease Contracts.

Receivables Interpretation
  • Setting KPIS
  • How to interpret from stakeholder’s perspective
  • How to convert interpretations in overall performance data
  • Analyzing overall performance of business/li>
  • Understanding the bigger picture and impact on statement of accounts
  • Calculating Days Sales Outstanding (DSO)
  • Calculating Best Possible Days Sales Outstanding (BPDSO)
  • Collection Effectiveness Index (CEI)
  • Analyzing the Operating and Cash Cycles

Case Study: Redesign of Organization Collection Process using Balanced Score Card & Collection KPIs – Performance Measurement & Re-measurement.

Fast Track Your Collections! After Sale
  • Cash: It’s Worth your Efforts
  • Tips, Techniques and Guidelines for Faster Collection
  • Importance of Setting a Collection Policy
  • Think beyond boundaries – Out of the Box Thinking in Collection.
  • Strategies in Dispute Management
  • Best Practices in Collection

Case Study: An out of box approach for credit collection with a habitually troublesome client with constant delays & defaults.

Handling Difficult Customers
  • Fast Track Collection Strategies
  • SOPs for Disaster Recovery Collection
  • Resilience Approach to Credit Management
  • Writing Skills for Effective Credit Recoveries
  • Effective Contract Terms for Successful Litigation & Arbitration
  • Credit Negotiation Skills
  • Litigation & Arbitration Strategies – Tolerance Testing

Simulation: Case Study based on Global Car Rental Company expediting collection process through redesign of its collection management process and synchronization of Sales department for achievement of common KPIs.

Who Should Attend

Accounts Receivable (AR) department managers, credit managers, AR staff, AR and revenue accountants, credit officers, billing and collection clerks, AR specialists, and professionals in accounting, finance, operations and sales who interact with Accounts Receivable and credit department.

Learning Outcomes
  • Develop effective Accounts Receivable Strategies to meet collection targets.
  • Use financial and non-financial analysis to assist in Receivables & Collections
  • Define the function of Accounts Receivable (AR)and its role in organizations.
  • Maintain effective collection policy.
  • Receivable Management in Service Industry with special emphasis on Car Rental Business.
Methodology

All the case study and working exercises will be based to achieve the client objectives. Participants will be working in groups to present their view on the scenarios which will lead to counter questions from other groups and the Trainer.

Course Facilitator
Aly Rehan Khan
ACMA –CGMA, CIMA UK
ITIL FoundationMr.

Aly Rehan is a highly profound and effective corporate trainer with decades long experience in numerous industries including banking, manufacturing and training. Currently engaged with top training and consulting companies in Middle East as freelance trainer and consultant and working for development of most precious resource of business organization i.e. their employees. His key topics include IFRS, Financial Management, Financial Control, Financial Statement Analysis, Cash Flow Management, Strategic Management, Global Corporate Reporting, Corporate Governance and Reporting. He bears extensive training experience in the government and private sector in UAE from mid to senior management. Appended to this profile are some of his recent trainings he delivered with a WOW experience. Besides an Associate of Certified Management Accountant and Certified Global Management Accountant from Chartered Institute of Management Accountants UK ACMA &CGMA, he holds a similar qualification in Management Accountancy from Pakistan. He is also a Diplomat Associate of Institute of Bankers, Pakistan and a to be Chartered Accountant from Institute of Chartered Accountants of Pakistan. He has a 9 years of experience of working with a global bank in various capacities including head of their training college, a four year articles with a reputed chartered accountant firm.

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