AR Credit Collections :Study Shows Your Credit Collection Policy & Procedure Manual Is Probably Useless

A recent survey from Credit Today reveals that a portion of companies are pretty good at keeping up with their AR Credit Collections Manual updates, but a majority of businesses neglect to keep up with this important activity.

The survery reported that about 41% update their manuals at least once a year, but that leaves more than 50% who do it less frequently which leaves them with a manual that is basically useless, and that is a big problem. Continue reading

Best Practices in AR : Creating a Plan to Improve Credit & Collections Activities

Best Practices in AR: Creating a Plan to Improve Credit and Collections Activities: The goal for any credit plan is to clearly define important elements so that employees can

conform to documented steps and procedures designed to improve the overall process. some of these important elements would include rules, regulations,  daily operations, approval workflow, and resources.

The Credit Research Foundation estimates that only 20% of credit departments have formalized policies. Many companies struggle to formalize policies due to ad-hoc credit management from salespeople, lack of critical financial information, or simply due to time constraints and higher priority projects. Continue reading