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Course Details

Credit and Collection Guidebook (Course Id 529)

QAS / Registry   Add to Cart 
Author : Steven Bragg, CPA
Status : Production
CPE Credits : 14.0
IRS Credits : 0
Price : $117.95
Passing Score : 70%
Primary Subject-Field Of Study:

Accounting - Accounting and Auditing for Course Id 529

Description :

The Credit and 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.

Usage Rank : 0
Release : 2014
Version : 2.0
Prerequisites : None.
Experience Level : Overview
Additional Contents : Complete, no additional material needed
Additional Links :
Advance Preparation : None.
Delivery Method : Self-Study
Intended Participants : Anyone needing Continuing Professional Education (CPE)
Revision Date : 06-Feb-2013
NASBA Course Declaration : Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam.
Approved Audience :

NASBA QAS - NASBA Registry - 529

Keywords : Accounting, Credit, Collection, Guidebook, cpe, cpa, online course
Learning Objectives :

Course 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.

Chapter 1
Credit and Collection Operations

Note the roles of the various employees of the credit and collection functions.

Chapter 2
Credit Procedures

Identify the key procedures and forms needed to operate the credit function.

Chapter 3
Credit Controls

Cite the key controls needed for the credit function, and note what they are intended to accomplish.

Chapter 4
Collection Procedures

State the key procedures and forms needed to operate the collection function, and the situations in which they are applicable.

Chapter 5
Collection Controls

Identify the key controls needed for the collection function.

Chapter 6
The Credit Policy

Identify the main elements of a credit policy, and note the situations in which the policy may be changed.

Chapter 7
The Credit Application

Cite the contents and handling of a credit application, and note why this process is used.

Chapter 8
Customer Credit Ratings

State the methodologies available for developing credit ratings, and the situations in which credit rating systems can be used.

Chapter 9
Ongoing Credit Monitoring

Itemize the events that can trigger a credit review.

Chapter 10
Interpretation of Financial Statements

Identify the methods that can be used to interpret the financial statements of a customer.

Chapter 11
Credit Risk Reduction

Cite the methods available for mitigating the risk associated with granting credit.

Chapter 12
Customer Billings

State the methods used to achieve an efficient and effective billing process.

Chapter 13
Payment Handling

Itemize the methods available for processing customer payments, and note who is involved in this activity.

Chapter 14
Collection Tactics

Identify the primary tactics used to collect cash from customers, and note how these tactics can be improved.

Chapter 15
Payment Deductions

Cite the management techniques used to deal with payment deductions made by customers.

Chapter 16
Skip Tracing

State the sources of information used to locate customers via skip tracing, and the circumstances under which skip tracing might be necessary.

Chapter 17
The Collection Agency

Note the reasons for using a collection agency, when to use one, and the fee structures they employ.

Chapter 18
Litigation and Bankruptcy Tactics

Identify the reasons for using litigation, and the methods for collecting on favorable judgments.

Chapter 19
The Allowance for Doubtful Accounts

Cite the methods used to estimate the amount of the allowance for doubtful accounts, and how to account for this allowance.

Chapter 20
Credit and Collection Technology

State the types of technology that can support the credit and collection functions.

Chapter 21
Product and Service Improvements

Identify the areas in which other parts of a company can cause collection problems, and how to mitigate these problems.

Chapter 22
Credit and Collection Measurements

Identify the key measurements used to evaluate the performance of credit and collections, and note how these measurements should be used.

Chapter 23
Credit and Collection Laws

Cite the key laws that impact the credit and collection functions.
Course Contents :

Chapter 1 - Credit and Collection Operations

Overview of Credit and Collection Management

The Credit Conundrum

The Collections Janitor Role

Organizational Structure

Job Descriptions

Credit Manager Job Description

Credit Clerk Job Description

Collections Manager Job Description

Collector Job Description

Skip Tracer Job Description

Probationary Period

Work Allocations

Staff Training

Goal Setting

Counterproductive Goals

Staff Compensation

Interdepartmental Relations

Reports

Credit Levels Report

Receivables Aging Report

Bad Debt Report

Customer Profitability Report

Employee Experience

Chapter 2 - Credit Procedures

Forms: Sales Order Form

Forms: Credit Application

The Credit Examination Procedure (Manual System)

The Credit Examination Procedure (Integrated System)

Chapter 3 - Credit Controls

In-Process Credit Controls

Alternative Credit Control Systems

Control System for Manual Credit Management

Control System for Computerized Credit Management

Additional Credit Controls Fraud Related

Additional Credit Controls Periodic Actions

Additional Accounting Policies

Chapter 4 - Collection Procedures

Forms: The Credit Memo Approval Form

The Collection Procedure

The Credit Memo Request Procedure

The Allowance for Doubtful Accounts Calculation Procedure

Chapter 5 - Collection Controls

In-Process Collection Controls

Alternative Collection Control Systems

Additional Collection Controls

Additional Accounting Policies

Chapter 6 - The Credit Policy

Overview of the Credit Policy

Credit Policy: Mission

Credit Policy: Goals

Credit Policy: Responsibilities

Credit Policy: Required Documentation

Credit Policy: Review Frequency

Credit Policy: Credit Calculation

Credit Policy: Terms of Sale

Credit Policy: Collection Methodology

Miscellaneous Provisions

Revision Frequency

Distribution of Credit Policy Revisions

Chapter 7 - The Credit Application

The Credit Application

Adjustments to the Credit Application

The On-Line Credit Application

Trade References

The Incomplete Application

Updating the Credit Application

Chapter 8 - Customer Credit Ratings

The Credit Rating

Internal Credit Rating Systems

Third Party Credit Ratings

Evaluating Credit Scores

Use of Credit Ratings

Credit Rating Errors

Chapter 9 - Ongoing Credit Monitoring

Credit Documentation

Indicators of Future Payment Delinquency

Ongoing Credit Monitoring Actions

Requests for Credit Increases

The Riskiest Customers

The Demanding Customer

Effects of Industry Credit Practices

Effects of General Economic Conditions

Chapter 10 - Interpretation of Financial Statements

Interpretation of Financial Statements

Problems with Financial Statement Analysis

Horizontal Analysis

Vertical Analysis

Cash Coverage Ratio

Current Ratio

Quick Ratio

Liquidity Index

Accounts Payable Turnover Ratio

Accounts Receivable Turnover Ratio

Inventory Turnover Ratio

Fixed Asset Turnover Ratio

Sales to Working Capital Ratio

Debt to Equity Ratio

Fixed Charge Coverage

Breakeven Point

Gross Profit Ratio

Net Profit Ratio

Return on Net Assets

Altman Z Score

Essential Analysis Tools

Limitations of Ratio Analysis

The Going Concern Qualification

Chapter 11 - Credit Risk Reduction

The Risk Reduction Concept

Payment Guarantees

Title Retention

UCC-1 Financing Statement

Purchase Money Security Interest

Inventory Consignment

Collateral

Credit Insurance

Factoring

Letters of Credit

Export-Import Guarantees

Outside Financing

Distributor Sales

Adjustment of Days to Pay

Cross-Selling Risk

Treatment of Customized Goods

Portfolio Approach to Risk

Alteration of Credit Terms

Chapter 12 - Customer Billings

Billing Processing

Billing Processing

Analysis of Billing Processing

Billing of Change Orders

Efficient and Effective Billing

Payment in Advance

Bank Account Debits

Systems Integration

Buffer Staff

Contract Terms Verification

Funding Verification

Update Customer File

Invoice Layout Improvement

Complex Invoice Separation

Invoice Proofreading

Invoice Creation at Delivery Point

Invoice Creation at Shipping Dock

Electronic Invoice Delivery

On-line Invoice Entry

Shipping Log Exception Tracking

Practices to Avoid

Analysis of Efficient Billing

Statements of Account

Chapter 13 - Payment Handling

Check Receipts

Check Receipt Improvements

The Bank Lockbox

Automatic Cash Application

Mailstop Number

Remote Deposit Capture

Special Check Endorsement Language

Chapter 14 - Collection Tactics

Overview of Collection Tactics

Collection Tactics

Courtesy Calls

Grace Period Reduction

Dunning Letters

Check Payment by Fax or E-mail

NSF Check Resubmission

Pay Undisputed Line Items

Confirm Payment Date

In-Person Check Pickup

Take Back Merchandise

Hold Orders

ACH Debits

Split Payments

Postdated Checks

Interest and Penalties

Promissory Note

Salesperson Assistance

COD Roll

Barter

Arbitration

Attorney Letters

Final Demand Letter

Issue Small Claims Court Complaint

The Collection Reputation

Credit Repayments

The Collection Call

Preparation

Scheduling

Phone Skills

Escalation

Documentation

In-Person Visits

Chapter 15 - Payment Deductions

Deduction Management

Subject Matter Experts

Team Approach

The Deductions Process Flow

Mitigating the Deductions Backlog

Personal Visits

Salesperson Involvement

Repairs Department Involvement

Product Returns Management

Planned Deductions

Deduction Prevention

Customer Terminations

Small Discount Management

Early Payment Discounts

Chapter 16 - Skip Tracing

Cost of Skip Tracing

Skip Tracing Information Sources

Fee-based Search Tools

Profile Reports

Social Media

Pretexting

Location by Social Security Number

Outsourced Skip Tracing

Profile of a Skip Tracer

Skip Tracing Documentation

Chapter 17 - The Collection Agency

The Collection Agency

When to Use a Collection Agency

When to Refer an Account to a Collection Agency

Management of a Collection Agency

Selection Criteria

Pricing

Contract Terms

Speed of Referral

Paperwork Support

Effectiveness Issues

Fraudulent Customers

Liability Issues

Feedback Issues

Bonding

Payment Tracking

The In-House Collection Agency

Chapter 18 - Litigation and Bankruptcy Tactics

The Litigation Process

Litigation Advance Preparation

Litigation Prescreening

Litigation Timing

Collection Trigger Points

Attorney Selection

Small Claims Court

Money Judgment Collection Tactics

Bankruptcy Activities

Asset Reclamation

Sell a Creditor Claim

Chapter 11 Bankruptcy

The Involuntary Bankruptcy Petition

Chapter 19 - The Allowance for Doubtful Accounts

Estimation of the Allowance for Doubtful Accounts

Accounting for the Allowance for Doubtful Accounts

The Direct Write-off Method

Negative Bad Debt Expense

Chapter 20 - Credit and Collection Technology

Collection Software

Document Imaging

Payment Deduction Database

Enterprise Resource Planning Systems

Miscellaneous Technology Concepts

Chapter 21 - Product and Service Improvements

Pricing

Incorrect Order

Product Quality

Shipping Damage

Field Servicing

The Improvement System

Chapter 22 - Credit and Collection Measurements

Overview of Credit and Collection Measurements

Days Sales Outstanding

Best Possible DSO

Collection Effectiveness Index

Measurements Based on Time Buckets

Days Delinquent Sales Outstanding

Average Days to Pay per Collector

Collection Dispute Cycle Time

Deduction Turnover

Average Time to First Contact

Bad Debt Percentage

Collection Performance Report

Average Time to Establish Credit

General Management Measurements

Chapter 23 - Credit and Collection Laws

CAN-SPAM Act

Fair and Accurate Credit Transactions Act (FACT)

Fair Credit Reporting Act

Fair Debt Collection Practices Act

Service Members Civil Relief Act (SMCRA)

Telephone Consumer Protection Act (TCPA)

Truth in Lending Act (TLA)

Glossary

Accounting Course 529 Home: https://www.cpethink.com/qas-cpa-courses
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