Page 140 - Accounting Best Practices

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Implementation Issues for Collections Best Practices
Exhibit 7.1 Summary of Collections Best Practices 129
Best Practice Cost Install Time
Collection Management
7–1 Clearly define account ownership
7–2 Utilize collection call stratification
7–3 Grant percentage discounts for early
payment
7–4 Conduct immediate review of unapplied
cash
7–5 Outsource collections
7–6 Simplify pricing structure
7–7 Write off small balances with no approval
Collection Systems
7–8 Compile customer assets database
7–9 Maintain access to customer orders
database
7–10 Arrange for automatic bankruptcy
notification
7–11 Set up automatic fax of overdue invoices
7–12 Issue dunning letters automatically
7–13 Use a collection call database
7–14 Implement customer order exception
tracking system
7–15 Install payment deduction investigation
system
7–16 Link to comprehensive collections
software package
7–17 Institute lockbox collections

Credit Issues
7–18 Preapprove customer credit
7–19 Create standardized credit level
determination system
Invoice Issues
7–20 Add receipt signature to invoice
7–21 E-mail invoices in Acrobat format