The Cash Flow Process Review from Receivables Solution Services is a one-day, on site review of a client’s business practices related to credit, collections and cash flow – from when an order is received through when payment is deposited in the bank. The review includes the following topics:
- Accounts Receivable Analysis
- Calculate metrics and benchmark against industry standards
- Identify outliers and concentrations
- Calculate cost of credit
- Credit Management
- Identify formal Terms & Conditions of Sale
- Credit Application
- Initial customer credit review and credit limit setting process
- Ongoing monitoring of customer credit
- Invoicing and Cash Application
- Content and format of invoice document
- Billing and distribution processes
- Unbilled revenue?
- Cash application procedures
- Cash receipts processing and deposit of funds
- Collection Policies and Procedures
- Prioritization: how do you decide who to contact?
- Documentation: process for recording results of contact, including promises
- When are contacts made (relative to due date)?
- How are contacts made (phone, email, fax, etc.)?
- Who makes these contacts?
- Review of standard letters and call scripts
- Dispute and Deduction Analysis
- Are disputed amounts charged off or left open?
- Collect and collate data on disputes
- Identify trends (types of disputes, excessive disputes by specific customers)
- Use of Third-Party Collection Services
- What accounts get sent to collections, and when?
- Who are you using for this purpose?
- Results and costs
DELIVERABLES resulting from the analysis review include:
- Executive briefing of findings and recommendations specific to the client
- Training and consultation with staff on best practices for credit and collections
- Quarterly follow up to assess progress and success for twelve months
- Unlimited email consultation for twelve months
FEES
The fee for a Cash Flow Process Review as described above is $1,200. Additional charges may be added for travel to client locations outside of Northeast Ohio (the greater Cleveland / Akron area) or to multiple client locations. Any travel charges will be identified and quoted as fixed amounts in advance.
All fees for the Cash Flow Process Review are payable in advance. We follow our own recommendations regarding credit policies based on the cost of extending credit.
Copyright 2011 Receivables Solution Services. All rights reserved.