2 Days Workshop
Introduction
The primary goal of this workshop is to help professionals who have some knowledge in finance and accounting in developing sound financial knowledge to read and understand financial reports. Real-current problematic finance & business cases will be analyzed and scenario solutions will be discussed in the workshop.
Course Objectives
By the end of this course you will be able to:
Review AR Aging Analysis
Identify Solution to Burning issues in collection
Review Collection Strategies
Analyse Financial Ratios & Credit Evaluation Analysis
Understand Risk Modelling Skills & financial impact
Assess Credit analysis & profiling customers
Apply comprehensive companywide Collection risk Model
Understand Thinking Out Of Box Collection Strategies
Methodology
Case Study & Group Discussion.
Who Should Attend
Entrepreneurs, Bankers, Accountants, Finance managers, CFO, Business Managers, Marketing Managers & Accounting Supervisors
Special Feature: NOTE: Please bring laptop along
Programmed Outline
Day 1
Module 1: AR Aging Analysis
focus areas- all overdue accounts
focus on converting overdue accounts to current status
review effective of current collection manpower
review % of dedicated to collection efforts
Module 2: Solution to Burning issues in collection
Customer change ownership
Uncontactable or Missing customers
Contactable-but cannot afford to pay
Avoid payment with thousand reasons
Interference from top management on collection section
Customer delay payment purposely
Incomplete document
Financial /Cash flow problem
Module 3: Review Collection Strategies
Stringent evaluation Policy ( Altman Z score)
Adherence & review SOP
Top Management commitment & hands approach
Review Credit Division manpower & skills calibre
Apply collection strategic management framework
Module 4: Financial Ratios & Credit Evaluation Analysis (Predicting Business Failure)
Learn how to size up a company quickly by reading their financial ratios
Liquidity
Solvency
Efficiency
Profitability
Asset Management
Assessing drivers of company profitability and growth:-
Operations and investment strategies : operating and investment management
Measuring the 'Fiscal-Fitness' of a company: The Altman Z-Score
Credit Evaluation & Monitoring
Importance of Credit Evaluation & Monitoring
Criteria For Approval Or Rejection
Setting the Credit Limit
Monitoring Customer Account
Group exercises
Day 2
Module 5: Apply Comprehensive Company Wide Collection Risk Model (Case Study) (Part 1)
Potential risk
Quantify Collection impact
Review Pre mitigation ( Collection impact)
Mitigating Collection strategies & controls
Post Mitigation ( collection impact)
Module 6: Apply Comprehensive Company Wide Collection Risk Model Case Study) (Part 2)
Quantify Financial Collection improvement
Quantify possible Cost increase in collection strategies
Quantify Cost/benefit Benefit in post collection mitigation strategies
Decision Summary recommended
Calculate ROI
Ranking ( priorities collection efforts)
Module 7: Thinking Out Of Box Collection Strategies
Negotiation
Monitoring
Collection
Outsourcing
Revaluation
Legal
Module 8: Application
Planning
Identify all the collection burning issues &
Identify all the solutions or alternative plans
Identify the KPI to the solutions
Execution
Identified Person in Charge (PIC) to achieve the Collection KPI
Put in place a Monitoring Program
Evaluation
Identified all the challenges/barriers faced by the PIC
Removing the barriers by providing action plan