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Accounts Payable & Receivable

Working Capital

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Objectives

1. Understand ho cash !o isgenerated.

". Understand that orking capital#anage#ent is the pri#ary toolto gain li$uidity.

%. Understand ho orking capitalcan be used as a co#petitiveadvantage.

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Accounts Payable

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nventory

'nventory represents capital that cannot beinvested elsehere in the business.(

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Accounts Payable

)evelop Partnerships

 *he Parado+ o, Accounts Payable

Credit *er#s vs. Cost o, Product- evel o, in!uence

'*he ay you #anage your inventory isgoing to de/ne your de#and ,or credit(

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Accounts Receivable

Co##on sense0 usually0 its not that co##on.

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1. Use credit to increase sells.

". Use the credit & collectionsprocess to enhance custo#ersatis,action.

%. li#inate barriers topay#ent.

Credit & Collections

2est Practices

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Use credit to increase sells

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Credit0 collections &custo#er satis,action

2elieve in #aking it as easy as possible ,oryour custo#ers to de business ith you.

)ocu#ent0 co##unicate and evaluate the

credit policy. P)3 Personnel 4ervices- create co#pro#ise ith

custo#ers.

Keep it Easy

Build

Relationships

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Credit0 collections &custo#er satis,action

denti,y and eli#inate sources o,dissatis,action. Ask your custo#er ,or ,eedback.

Create custo#er5,ocused tea#s that alignthe sales and credit ,unctions.

GetFeedback

Team Work

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li#inate barriers topay#ent

asier to pay0 easier to collect-

1. 6enerate invoices that are clear and accurate.

". Accept #ethods o, pay#ent that custo#erspre,er to use.

%. Provide a single point o, contact ,or custo#erin$uiries.

o 7ranklin Covey Co.- 89: custo#er retention rate.

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Cash Conversion Cycle & W; 

 *i#e is #oney and <oney can by you #ore ti#e.