Managing the cash Cycle–Accounts Receivable & Payable

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

• 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.

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.