CHAPTER 4: CREDIT MANAGEMENT
Service level agreements (SLA)—Create for customers to spell out how to do business with your company. SLA for sales reps—Commission is paid when the invoice is paid. Involve sales reps in collection efforts (eliminate bad orders taken to win a sales contest). Imaging and workflow—Scan the sales order, credit application, all financial statements, credit bureau reports, articles, tax forms, invoice/credit memos, debit memos, and checks to put them into electronic format for a complete audit trail of all documents. Grant authority to view/access based on need. Shared Services—A shared service center (SSC) can either be managed by the company or outsourced to a supplier of cash application, credit management, accounts receivable, and collections services. { Centralize tasks duplicated across the organization. { Centralize billing, credit management, AR posting and deductions, and collections. Systems—Upgrade or implement automation systems, but review outsourcing (partial or full) prior to spending a large budget on a new system and team to implement the system. When opening a new customer account, it is worth negotiating payment terms with the payment method being an electronic transfer.
Regarding payment methods in the U.S., consumers are leading the charge in paying their bills electronically.
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THE ACCOUNTS RECEIVABLE SPECIALIST CERTIFICATION PROGRAM E-TEXTBOOK
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