The collection of receivables is one of the most crucial things to do in any business simply because it is still cash that the business earned but have not yet gotten in their hands. Since it is still money, the business has to do all they can in order to collect it otherwise it will never reach their hands. Of course in order to make sure that all collections are made, there has to be a team that has received accounts receivable training who would be able to take on the task.
Now when one would undergo this sort of program, he will be under a manager or a veteran who has been working in the collections department for quite some time. The teacher will first teach the students the definition of an accounts receivable and how to spot one. Of course he will also need to teach the students how to read some financial statements as well.
Now the main thing that the students would have to learn at this point would be how to read a statement of financial position or simply a balance sheet. Now he will be able to see in the balance sheet how much the total accounts receivables the company has. The accounts receivable is found under the assets portion of the balance sheet with the total amount there at the side.
Now this would only show the total number of collectibles but not the details of each. Now there will also be a list that would be created by the collections department on the details of all the collectibles the business has. Now the list would have the name of the entity that owes money to the business and of course the amount that the entity would have to pay.
After that, one will then learn how to prompt debtors to pay. In this part, one has to learn how to be polite and firm at the exact same time. So one will be learning collection and persuasion techniques as well as basic customer service techniques.
Now with regard to credit extension, there are actually ways to know whether a company can afford to give one or not. The first thing to assess would be the financial state of the company whether it can afford the extension or not. The next thing to do would be to assess the credit rating of a debtor. If he has a bad one, it is not advisable to give an extension because he might not pay even after the extension.
Of course one also must learn the process of documenting the collections that were made. Once a collection was made, he has to record it in his notebook so that there is proof. Of course he has to make sure that he backs it up with the necessary documents like invoices and such.
Now aside from updating his own records, he also has to update the company records. Now when a collection was made, one has to update the company records so that the upper management will know how much people still really owe the business. This is to keep track of all the money that goes into the business.
Now when one would undergo this sort of program, he will be under a manager or a veteran who has been working in the collections department for quite some time. The teacher will first teach the students the definition of an accounts receivable and how to spot one. Of course he will also need to teach the students how to read some financial statements as well.
Now the main thing that the students would have to learn at this point would be how to read a statement of financial position or simply a balance sheet. Now he will be able to see in the balance sheet how much the total accounts receivables the company has. The accounts receivable is found under the assets portion of the balance sheet with the total amount there at the side.
Now this would only show the total number of collectibles but not the details of each. Now there will also be a list that would be created by the collections department on the details of all the collectibles the business has. Now the list would have the name of the entity that owes money to the business and of course the amount that the entity would have to pay.
After that, one will then learn how to prompt debtors to pay. In this part, one has to learn how to be polite and firm at the exact same time. So one will be learning collection and persuasion techniques as well as basic customer service techniques.
Now with regard to credit extension, there are actually ways to know whether a company can afford to give one or not. The first thing to assess would be the financial state of the company whether it can afford the extension or not. The next thing to do would be to assess the credit rating of a debtor. If he has a bad one, it is not advisable to give an extension because he might not pay even after the extension.
Of course one also must learn the process of documenting the collections that were made. Once a collection was made, he has to record it in his notebook so that there is proof. Of course he has to make sure that he backs it up with the necessary documents like invoices and such.
Now aside from updating his own records, he also has to update the company records. Now when a collection was made, one has to update the company records so that the upper management will know how much people still really owe the business. This is to keep track of all the money that goes into the business.
About the Author:
You can visit ehartlebassociates.com for more helpful information about The Accounts Receivable Training Program.