Working on our upcoming webinar with Lina Chindamo (Senior Risk Manager from Dun & Bradstreet), I had the pleasure of diving into her fountain of knowledge and expertise in accounts receivable (AR). With her track record working in senior credit positions at top companies including Mondelez, Maple Leaf Foods, Kraft, and Sony, Lina has established key best practices to manage the AR function along the way.
So when we asked Lina what her secret is at creating an effective AR department, she shared with us 5 key best practices. Here’s a sneak peek on what she’ll share in our upcoming webinar with Dun & Bradstreet this Thursday (sign up here to join!).
1. Create a Credit Policy: A written policy is key to ensuring consistency and accountability of how credit is handled, assessed and authorized. Make sure to consider your objectives, terms of sale and what happens when individuals do not adhere to the credit policy.
2. Focus on People: People are the foundation of any department, especially AR. Make sure when you are staffing for your AR department that you have the right people, with the right skills. Learn more about what you should be looking for and how you can best manage and motivate your team in Lina’s upcoming webinar.
3. Employ the Right Tools: even with the right people, you need to invest in the right tools to maximize your team’s efficiency. Financial technology is booming and now there is a breadth of tools to consider which help automate low value, high effort areas of your AR process. Can you think of a couple you can go without – manually matching invoices to payments? Mailing invoices? There is a better way. Lina will touch on this in her upcoming webinar.
4. Build Strong Relationships: This seems like a no brainer, but when you are managing multiple areas of AR which involve manual effort and time, your team’s focus on building relationships can fall behind. During her webinar, Lina will touch on how you can build internal alliances between departments to share AR insights and external partnerships with your customers to get paid faster while improving their experience.
5. Measure KPIs: If it’s not measured, did it even happen? AR professionals need metrics to understand the overall impact on cash flow. Think about what you should measure and how that measurement should be managed. A key metric that should come to mind is DSO. How is yours trending? How do you measure it? How can you improve it?
Are you considering any of the best practices above in your process already? Learn more on Thursday in just 30 minutes as Lina shares her expertise in our upcoming webinar: Register now.