The collection of receivables is one of the most crucial things to do in any business simply because it is still cash that the business earned but have not yet gotten in their hands. Since it is still money, the business has to do all they can in order to collect it otherwise it will never reach their hands. Of course in order to make sure that all collections are made, there has to be a team that has received accounts receivable training who would be able to take on the task.
Now the one who would handle the training program would usually be a manager from the collections department. The manager would usually teach the students first how to classify receivables or credit sales. He will also teach the students how to read financial statements so that they will know how to trace the collectibles.
Now the balance sheet is the most important financial statement to understand because it is the one statement that would contain all of the account titles that the business would have. Of course by reading this kind of thing, one will be able to see the amount of accounts receivables that the business would have. The number beside the account title would be the total amount 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 learning how to classify and read receivables, the next thing that one will learn would be how to run after debts. Now this would include making phone calls and sending emails regarding the payment of the debt. Now one will also be learning whether the debtor will be given a credit extension or not.
Now one of the things that the students will really have to learn about would be credit extension because this is a form of customer service. Sometimes, companies would offer credit extensions to loyal customers who would request. Now to know whether a debtor should be granted one or not, the collector has to check whether the company can afford it and how good the credit rating of the debtor is.
Of course one also must learn the process of documenting the collections that were made. Once a collection was made, he has to record it in his notebook so that there is proof. Of course he has to make sure that he backs it up with the necessary documents like invoices and such.
The next thing that he has to do would be to reconcile the collections in the records of the company. In other words, he has to make sure that a debt that has already been settled will show up in the records. That way, he can properly keep track of debts that have been paid and debts that have not.
Now the one who would handle the training program would usually be a manager from the collections department. The manager would usually teach the students first how to classify receivables or credit sales. He will also teach the students how to read financial statements so that they will know how to trace the collectibles.
Now the balance sheet is the most important financial statement to understand because it is the one statement that would contain all of the account titles that the business would have. Of course by reading this kind of thing, one will be able to see the amount of accounts receivables that the business would have. The number beside the account title would be the total amount 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 learning how to classify and read receivables, the next thing that one will learn would be how to run after debts. Now this would include making phone calls and sending emails regarding the payment of the debt. Now one will also be learning whether the debtor will be given a credit extension or not.
Now one of the things that the students will really have to learn about would be credit extension because this is a form of customer service. Sometimes, companies would offer credit extensions to loyal customers who would request. Now to know whether a debtor should be granted one or not, the collector has to check whether the company can afford it and how good the credit rating of the debtor is.
Of course one also must learn the process of documenting the collections that were made. Once a collection was made, he has to record it in his notebook so that there is proof. Of course he has to make sure that he backs it up with the necessary documents like invoices and such.
The next thing that he has to do would be to reconcile the collections in the records of the company. In other words, he has to make sure that a debt that has already been settled will show up in the records. That way, he can properly keep track of debts that have been paid and debts that have not.
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