Accounts Receivable Management Best Practices

Praise for Accounts Receivable Management Best Practices "e;An excellent reference tool on how to manage the accounts receivable process for any company. The use of real-life examples makes the concepts easy to understand. I recommend the book to anyone who wants to improve cash flow and reduce bad debt loss."e; Michael E. Beaulieu, Senior Vice President, Finance Cardinal Health "e;Rather than simply explaining how to get the greatest return from an investment in accounts receivable, John G. Salek reveals how companies shoot themselves in the foot when management sets policies and procedures without consideration of the impact on cash flow. Accounts Receivable Management Best Practices isn't just for credit and collection professionals who often spend more time cleaning up process errors and other corporate 'garbage,' instead of managing risk. It should be required reading for C-level executives, the sales staff, operations managers, and anybody else whose job impacts the order-to-cash cycle."e; David Schmidt, Principal, A2 Resources Coauthor of Power Collecting: Automation for Effective Asset Management "e;Enhancing a company's competitive profile is all about giving enough customers the right product, at the right price, at the right time. This author's real-world approach to accomplishing this goal through the prism of receivables management makes this book a must-read for those companies looking to make their mark as an organization that cares about its customers as well as their own need to produce financial results."e; Bruce C. Lynn, Managing Director The Financial Executives Consulting Group, LLC "e;I have worked with John Salek since 1992, both as his client and as a project manager working with his organization. His knowledge of receivables management . . . the technology, the processes, and the formula for success . . . are unsurpassed in the field."e; Stephen L. Watts, Manager, Global Receivables (retired) General Electric Medical Systems "e;Mr. Salek has written a masterpiece on the intricacies and management of the accounts receivable portfolio. I would recommend this book to CFOs, controllers, treasurers, credit managers, and small business owners."e; Steve Kozack, Credit Manager Lennox Hearth Products "e;Written by an author who has been in the trenches and cites actual examples. This is not written in theory, but from practice."e; Milt Dardis, Collection Consultant Dardis & Associates

Praise for Accounts Receivable Management BestPractices"An excellent reference tool on how to manage the accountsreceivable process for any company. The use of real-life examplesmakes the concepts easy to understand. I recommend the book toanyone who wants to improve cash flow and reduce bad debtloss."Michael E. Beaulieu, Senior Vice President, Finance CardinalHealth"Rather than simply explaining how to get the greatest returnfrom an investment in accounts receivable, John G. Salek revealshow companies shoot themselves in the foot when management setspolicies and procedures without consideration of the impact on cashflow. Accounts Receivable Management Best Practices isn't just forcredit and collection professionals who often spend more timecleaning up process errors and other corporate 'garbage,' insteadof managing risk. It should be required reading for C-levelexecutives, the sales staff, operations managers, and anybody elsewhose job impacts the order-to-cash cycle."David Schmidt, Principal, A2 Resources Coauthor of PowerCollecting: Automation for Effective Asset Management"Enhancing a company's competitive profile is all about givingenough customers the right product, at the right price, at theright time. This author's real-world approach to accomplishing thisgoal through the prism of receivables management makes this book amust-read for those companies looking to make their mark as anorganization that cares about its customers as well as their ownneed to produce financial results."Bruce C. Lynn, Managing Director The Financial ExecutivesConsulting Group, LLC"I have worked with John Salek since 1992, both as his clientand as a project manager working with his organization. Hisknowledge of receivables management . . . the technology, theprocesses, and the formula for success . . . are unsurpassed in thefield."Stephen L. Watts, Manager, Global Receivables (retired)General Electric Medical Systems"Mr. Salek has written a masterpiece on the intricacies andmanagement of the accounts receivable portfolio. I would recommendthis book to CFOs, controllers, treasurers, credit managers, andsmall business owners."Steve Kozack, Credit Manager Lennox Hearth Products"Written by an author who has been in the trenches and citesactual examples. This is not written in theory, but frompractice."Milt Dardis, Collection Consultant Dardis &Associates

Preface ixChapter 1 Introduction 1Why Is Receivables Management Important? 1If It Was Easy, Everyone Would Do It (Well) 2Influences Outside the Control of the Responsible Manager 5Conflicting Priorities 6Chapter 2 Receivables Antecedents 9Quotation 10Contract Administration 12Pricing Administration 16Credit Controls 20Order Processing 38Invoicing 40Chapter 3 Receivables Asset Management 53Introduction 53Portfolio Strategy 54Collection Process 66Special Collection Efforts 83Deductions Processing 92Late Payment Fees and Prompt Payment Discounts 103Dispute Management 109Account Maintenance 117Payment Processing 121Chapter 4 Technology 131Overview 131Receivables Applications 132Best Practices 134Cost versus Benefit 138Key Points 138Chapter 5 Organizational Structure 139Overview 139Best Practices 141Key Points 148Chapter 6 Metrics, Reporting, and Incentives 149Overview 149"Reporting-Driven Downward Spiral" 150Best Practices 152Incentives 158Incentives Best Practices 159Key Points 164Chapter 7 Acquisition Integrations and ERP Implementations 165Overview 165Best Practices 170Key Points 175Chapter 8 Outsourcing 177Overview 177Best Practices 180Key Points 185Chapter 9 Selected Topics 187Introduction 187Policy and Procedures 187Internal Controls 188Financing of the Receivables Asset 189Payment Term Changes 192Appendix Receivables Management Success Stories 193Index 207