Introduction
The importance of cash cycle coming from fact that moving cash generating profit , so as much as you improve the cash cycle , as much as get more profit. Accounts receivable and payables best practices playing main rule in improving cash cycle.
Course Objectives of Managing the cash Cycle – Accounts Receivable & Payable
- Enhance the understanding of accounting environment, kay financial statement and IFRS.
- Identify the accounts receivables best practices and improve credit terms management.
- Identify inventory and supply chain management best practices.
- Identify accounts payable management best practices.
- Improve cash and working capital management skills using latest technology and best tools.
- Enhance the understanding of the cash cycle and cash cycle management.
Managing the cash Cycle – Accounts Receivable & Payable Course Outlines
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
- Identifying underperforming areas to increase customer satisfaction
Customers and Trading Terms
- 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 financial statement
Day2
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
- Appropriate internal and external escalation steps
- Using workflow management to maximize collector performance
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 3
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
Accounts Payable, Financial Accounting, and the Supply Chain
- 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?
Day 4
Achieving World Class in Accounts Payable Processes
- 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
Improving Invoice Processing and Operational Management
- 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?
Day 5
Harnessing Technology in Accounts Payable Processes
- 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
Making the Payments and Maintaining the Relationships
- 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