Advanced Cash Cycle Management: Accounts Receivable and Payable Strategies

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 a financial statement

DAY 2 - 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?

The program will conclude with an interactive case study exercise to allow participants an opportunity to apply the learning of the week and define a practical solution.