Accounts Receivable Management and Development of Credit Policies Course

Introduction

Efficient accounts receivable (AR) management is essential to maintaining healthy cash flow, minimizing credit risk, and sustaining profitability. In many organizations, delayed customer payments and weak credit control systems can lead to serious liquidity issues. This course, Accounts Receivable Management and Development of Credit Policies, is designed to equip finance professionals and credit managers with the strategies and tools to optimize receivables performance and establish robust credit policies.

Participants will explore the full lifecycle of receivables management—from credit evaluation and customer onboarding to invoicing, collections, and dispute resolution. The course emphasizes practical techniques for reducing days sales outstanding (DSO), increasing collection efficiency, and managing delinquent accounts professionally and legally. Special attention is given to the integration of AR processes with broader financial and customer relationship strategies.

A key focus of the course is the development and implementation of effective credit policies tailored to an organization’s risk appetite, market environment, and customer base. Participants will learn how to assess creditworthiness, set credit limits, and create policy frameworks that support both sales growth and financial control. Real-world examples, interactive case studies, and policy design exercises will help participants translate concepts into actionable policies.

By the end of the program, attendees will have a clear understanding of how to balance risk and reward in credit management, strengthen receivables processes, and contribute to a healthier bottom line. Whether you're establishing AR systems from scratch or seeking to enhance existing policies, this course offers valuable insights for driving operational excellence and financial resilience.

Who should attend?

This course is ideal for:

·         Accounts receivable officers and specialists

·         Credit controllers and credit analysts

·         Finance and accounting managers responsible for collections and working capital

·         Credit and collections professionals seeking to strengthen their skills and update their practices

·         Sales and customer service managers who interact with customers regarding payments or credit terms

·         Business owners and entrepreneurs managing receivables in growing organizations

·         Internal auditors and compliance officers monitoring financial controls related to credit and receivables

This course is suitable for individuals across industries including manufacturing, services, wholesale, distribution, and non-profits who seek to improve receivables performance, reduce credit risk, and implement structured credit policies.

Course duration

5 days

Course Objectives

By the end of this course, participants will be able to:

·         Understand the strategic importance of accounts receivable management in sustaining cash flow and financial stability.

·         Analyze the entire receivables process—from customer onboarding and credit evaluation to invoicing, collections, and dispute resolution.

·         Develop and implement effective credit policies that align with the organization’s risk tolerance and market dynamics.

·         Apply techniques for assessing customer creditworthiness, including financial statement analysis, credit scoring, and use of credit reports.

·         Establish practical systems and procedures for timely billing, accurate record-keeping, and efficient collections.

·         Monitor and control receivables performance using key metrics such as Days Sales Outstanding (DSO), aging reports, and collection effectiveness index.

·         Mitigate the risk of bad debts through proactive credit control, customer segmentation, and effective follow-up strategies.

·         Resolve payment disputes professionally and legally, while maintaining customer relationships.

·         Integrate AR management with broader business functions, such as sales, finance, and customer service, for improved collaboration.

·         Design and refine credit policy documents, incorporating approval workflows, escalation procedures, and regular reviews.

The Content:

Day One: Credit Policies Management

·         Setting Credit Policies

·         Approving the Credit

·         Developing Credit Controls

·         The Need for Accounts Receivable

·         The Level of Accounts Receivable Companies Should Have

Day Two: The Billing Process

·         Efficient Billing Process Means Faster Collection

·         Preventing the Fatal Mistake: Sending the Bill with Errors

·         The Use of Technology

Day Three: Collection of Money

·         Cash: It's Worth your Efforts

·         Techniques for Faster Collection

·         Payment Processing Options

·         Letter of Credit ( LC )

·         Cash against documents

·          Cheque

Day Four: The Relationship with customers

·         Developing Good Working Relationships Between the Two Departments

·         Involving Sales in the Collection Effort

·         Payments status information to vendor

·          Communication with internal customers

Day Five: Accounts Receivable Process Analysis

·         Best Practices in Accounts Receivable (AR)

·         AR Process Improvement

·         Improving Quality of Accounts Receivable

·         Aging of Accounts Receivable and Bad Debts Reserves

·         Alternatives in Computing Bad Debt

·         Reducing Bad Debt Write-Offs

·         Calculating Accounts Receivable Turnover

·         Calculating Days Sales Outstanding (DSO)

·         Collection Effectiveness Index (CEI)

·         Analyzing the Operating and Cash Cycle

Module Six: Addressing Delays in Collection

·         Consistent Follow-up

·         Personal Visits

·         Regular Communication

·         Identify Delaying Tactics

·         Blockage of Account

·         Legal Action, if required

Module Seven: Provisioning

·         Company’s Provisioning Policy

·         Debt write-off Policy

·         Accounting for Post-Provisioning

·         Accounting for Post- Write off

Module Eight: Policy Development

·         Analyzing real-world AR challenges and policy failures

·         Drafting a customized credit policy

·         Implementation planning

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: training@upskilldevelopment.com Tel: +254 721 331 808

Training Venue

The training will be held at our Upskill Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Upskill certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: training@upskilldevelopment.com, +254 721 331 808

Terms of Payment:

Unless otherwise agreed between the two parties payment of the course fee should be done 3 working days before commencement of the training so as to enable us to prepare better