One of the most important parts of any business would be the handling of the accounts receivables because receivables are money that has been earned but not yet collected. So it is actually income already but it has not been put into the hands of the business. Since it is the job of the business to collect these collectibles, there has to be a team that would receive accounts receivable training in order to handle the job.
Now the teacher of these training programs would most likely be a boss or a manager that would come from the collections team because this is his specialty. The very first thing that these teachers would teach would be first how about what a collectible is. Of course in order to do this, the students will have to be taught how to read the balance sheet.
Now when it comes to the reading of financial statements, the main thing that the students will really have to know how to read would be the balance sheet because it is this that would contain the credit sales. Through the scanning of the balance sheet, one will be able to see an account title named accounts receivable. In there would be the total number of receivables.
Of course one would also have to know which collectibles belong to which entity. There will also be a list of all the collectibles that the company has incurred which would come from the journal entries. In this list, the student will see the person or company who owes money to the business and the corresponding amount that person or business owes.
After that, one will then learn how to prompt debtors to pay. In this part, one has to learn how to be polite and firm at the exact same time. So one will be learning collection and persuasion techniques as well as basic customer service techniques.
Now the thing about a credit extension is that it can only be given if the situation is ideal or not. The very first thing that one should do would be to check whether the company can actually afford it. Also, one has to check the background of the debtor because a debtor who has a bad credit rating would most likely still not pay even though he was given an extension.
Other than those things, one also has to learn how to document each collection. First thing he would have to learn would be how to properly reconcile the collectibles in black and white. One has to make sure that he always has receipts or invoices from the collections that he made.
Of course he also has to update the records of the business. He has to make sure that whenever a collection was made, it shows in the company records. This way, everyone will be updated as to whether income actually came in or is still pending.
Now the teacher of these training programs would most likely be a boss or a manager that would come from the collections team because this is his specialty. The very first thing that these teachers would teach would be first how about what a collectible is. Of course in order to do this, the students will have to be taught how to read the balance sheet.
Now when it comes to the reading of financial statements, the main thing that the students will really have to know how to read would be the balance sheet because it is this that would contain the credit sales. Through the scanning of the balance sheet, one will be able to see an account title named accounts receivable. In there would be the total number of receivables.
Of course one would also have to know which collectibles belong to which entity. There will also be a list of all the collectibles that the company has incurred which would come from the journal entries. In this list, the student will see the person or company who owes money to the business and the corresponding amount that person or business owes.
After that, one will then learn how to prompt debtors to pay. In this part, one has to learn how to be polite and firm at the exact same time. So one will be learning collection and persuasion techniques as well as basic customer service techniques.
Now the thing about a credit extension is that it can only be given if the situation is ideal or not. The very first thing that one should do would be to check whether the company can actually afford it. Also, one has to check the background of the debtor because a debtor who has a bad credit rating would most likely still not pay even though he was given an extension.
Other than those things, one also has to learn how to document each collection. First thing he would have to learn would be how to properly reconcile the collectibles in black and white. One has to make sure that he always has receipts or invoices from the collections that he made.
Of course he also has to update the records of the business. He has to make sure that whenever a collection was made, it shows in the company records. This way, everyone will be updated as to whether income actually came in or is still pending.
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