Accounts Receivable Management Best Practices

Praise for Accounts Receivable Management Best Practices "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." —Michael E. Beaulieu, Senior Vice President, Finance Cardinal Health "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." —David Schmidt, Principal, A2 Resources Coauthor of Power Collecting: Automation for Effective Asset Management "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." —Bruce C. Lynn, Managing Director The Financial Executives Consulting Group, LLC "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." —Stephen L. Watts, Manager, Global Receivables (retired) General Electric Medical Systems "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." —Steve Kozack, Credit Manager Lennox Hearth Products "Written by an author who has been in the trenches and cites actual examples. This is not written in theory, but from practice." —Milt Dardis, Collection Consultant Dardis & Associates

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

About the Author :
JOHN G. SALEK is the National Leader of the Receivables Cycle Management Practice of Parson Consulting, a large financial consulting firm with offices throughout the United States and United Kingdom. He is a veteran financial professional with proven performance in receivables cycle management, including order and contract processing, billing, dispute management, credit control, collections, and cash application. He has worked in a broad range of industries, including healthcare, publishing, leasing, distribution, and software. He has contributed white papers and articles to Credit Today and Parson Consulting's newsletter, Knowledge@Work, and has been quoted in the Wall Street Journal, Business Finance, and Modern Healthcare.

Review :
“…a useful, informative, enlightening and easy-to-read book.” (Accounting Technician, February 2006)