Managing Accounts Receivable Debt Collection

Learn how to better manage accounts receivable by utilizing reports and technology.

Many companies carry over 30-40% of their revenue in accounts receivable each month, often dealing with parent companies and their subsidiaries. This topic helps the person(s) responsible for billing, cash flow, and revenue cycle management understand how to establish a proactive workflow for improving A/R management, measure collection performance, and understand the processes required when dealing with multiple levels. This information also explains the workflow to establish the internal collection process, discusses benchmarks and analyzes the current position, and sets goals to reach peak performance for the next back dollars and results. Failing to have a proper A/R workflow system is the most common error companies make in collecting bad debt and managing customer account balances. Setting clear guidelines for your new financial policy will counteract lost revenue, bad debt write-offs, and costly internal mistakes.

Learning Objectives

• You will be able to recognize how to define an internal collection policy.
• You will be able to identify effects of aged accounts receivable and bad debt.
• You will be able to differentiate between first and third party collection.
• You will be able to recognize strategies for accounts receivable management.