23-08-2012, 04:16 PM
RECEIVABLES MANAGEMENT
1RECEIVABLES.ppt (Size: 107.5 KB / Downloads: 39)
INTRODUCTION
What are receivables?
Receivables are sales made on credit basis.
Why do we need receivables?
Reach sales potential
Competition
Understanding Receivables
As a part of the operating cycle
Time lag b/w sales and receivables creates
need for working capital
OBJECTIVES
Creating, presenting and collecting accounting receivables
Establish and communicate the credit policies
Evaluation of customers and setting credit limits
Ensure prompt and accurate billing
Maintaining up-to-date records
Initiate collection procedures on overdue accounts
STEPS IN CREDIT ANALYSIS
Financial statements: long term, short term solvency etc can be judged
Bank references: information about the customer from another bank
Trade references: information about customer obtained from firms based on their experiences
Credit bureaus: to check the financial viability of the business
Third party guarantees
Field visit: to get information of the existence and general condition of the customer’s business
BENEFITS
Helps improve customer satisfaction:
enhance service level and increase retention with customized information.
Takes control of sales processes:
manage your sales process more effectively by measuring trends and analyzing performance.
Enhance your productivity:
help reduce administrative costs and enhance office productivity
Streamline revenue allocation:
managed calculations to fit your business needs
Providing access to vital information