In the previous article in this two-part series on accounts receivable management training, we discussed the role of the AR manager in account reconciliation, credit extension, and customer service. In this article, we will discuss training in billing, payment processing, and collections.
Billing and Reporting
AR managers should be trained in external and internal reporting. External reporting is made up of invoices and statements that facilitate repayment by informing customers of their outstanding account balances.
There’s an internal report called “accounts receivable aging” which breaks down outstanding balances by how long they’ve been delinquent. For example, one customer on the report might have one balance that’s 31 to 60 days past due and another balance that’s 61 to 90 days past due. The aging report helps the AR manager select accounts for collection, or for factoring AR turnover.
Your accounts receivables staff needs to post customer payments in a timely manner so that your company can accurately keep a record of outstanding balances. Training in this area will help the AR manager perform account reconciliation and financial reporting, as well as enable them to cover for a staff member who may be out of the office.
A majority of training programs focus on AR turnover, or debt collection in order to convert invoices into cash. Training should reinforce the importance of reducing the average time required to retrieve actual revenue from sales. Prospective AR managers should have some collections experience in order to assist your accounts receivable staff in converting credit sales to cash. As part of the training, have candidates conduct a few collections calls. This will help you assess their ability and determine what other areas of collections training may be needed.
The Jayaram Law routinely and successfully assists its clients in their business-to-business (b2b) collection needs. We take pride in obtaining payment on accounts receivables without fracturing critical business relationships or engaging in time-consuming and costly litigation efforts.
If you need business debt collection services conducted in a professional manner, contact our B2B (business-to-business) debt collection law firm by calling 312.454.2859 or visiting www.jayaramlaw.com.