Credit and Collection Guidebook (Currently Unavailable)

Author: Steven Bragg

CPE Credit:  14 hours for CPAs

The Credit & Collection Guidebook shows how to achieve a balance between more sales and a reasonable amount of bad debt by focusing on the design and management of the credit and collection functions. The discussion ranges from the structure of specific jobs to the full range of collection and litigation tactics that can be used to collect money from customers.

Publication Date: September 2014

Designed For
Any tax practitioners

Topics Covered

  • Credit and Collection Operations
  • Credit Procedures
  • Credit Controls
  • Collection Procedures
  • Collection Controls
  • The Credit Policy
  • The Credit Application
  • Customer Credit Ratings
  • Ongoing Credit Monitoring
  • Interpretation of Financial Statements
  • Credit Risk Reduction
  • Customer Billings
  • Payment Handling
  • Collection Tactics
  • Payment Deductions
  • Skip Tracing
  • The Collection Agency
  • Litigation and Bankruptcy Tactics
  • The Allowance for Doubtful Accounts
  • Credit and Collection Technology
  • Product and Service Improvements
  • Credit and Collection Measurements
  • Credit and Collection Laws

Learning Objectives

  • Note the roles of the various employees of the credit and collection functions.
  • Identify the key procedures and forms needed to operate the credit function.
  • Cite the key controls needed for the credit function, and note what they are intended to accomplish.
  • State the key procedures and forms needed to operate the collection function, and the situations in which they are applicable.
  • Identify the key controls needed for the collection function.
  • Identify the main elements of a credit policy, and note the situations in which the policy may be changed.
  • Cite the contents and handling of a credit application, and note why this process is used.
  • State the methodologies available for developing credit ratings, and the situations in which credit rating systems can be used.
  • Itemize the events that can trigger a credit review.
  • Identify the methods that can be used to interpret the financial statements of a customer.
  • Cite the methods available for mitigating the risk associated with granting credit.
  • State the methods used to achieve an efficient and effective billing process.
  • Itemize the methods available for processing customer payments, and note who is involved in this activity.
  • Identify the primary tactics used to collect cash from customers, and note how these tactics can be improved.
  • Cite the management techniques used to deal with payment deductions made by customers.
  • State the sources of information used to locate customers via skip tracing, and the circumstances under which skip tracing might be necessary.
  • Note the reasons for using a collection agency, when to use one, and the fee structures they employ.
  • Identify the reasons for using litigation, and the methods for collecting on favorable judgments.
  • Cite the methods used to estimate the amount of the allowance for doubtful accounts, and how to account for this allowance.
  • State the types of technology that can support the credit and collection functions.
  • Identify the areas in which other parts of a company can cause collection problems, and how to mitigate these problems.
  • Identify the key measurements used to evaluate the performance of credit and collections, and note how these measurements should be used.
  • Cite the key laws that impact the credit and collection functions.

Level
Overview

Instructional Method
Self-Study

NASBA Field of Study
Accounting (14 hours)

Program Prerequisites
None.

Advance Preparation
None.

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