Table of Contents

Course Learning Objectives. 5

Chapter 1 - Accounts Receivable Best Practices for Small to Medium Sized Commercial Entities - Section 1 8

Introduction. 8

Written Policies and Procedures. 8

Accounts Receivable Process Overview.. 9

Sales and the Accounts Receivable Management Process. 9

Best Practices Sales Processes. 10

Credit 13

Best Practices Customer Credit Evaluation. 14

Tier 1 Customer Credit Analysis. 16

What Business Credit Reports are Available?. 16

Sample Tier 1 Credit Matrix. 18

Tier 2 Customer Credit Analysis. 20

Working with Internally Prepared Financial Statements. 20

Financial Ratio Analysis. 21

Altman Z Score. 25

Sample Tier 2 Credit Matrix. 27

Chapter 1 - Section 1 Review Questions. 30

Chapter 1 - Accounts Receivable Best Practices for Small to Medium Sized Commercial Entities - Section 1 31

Credit Approval 31

Credit Monitoring. 31

Best Practices Customer Monitoring. 31

Methods to Secure the Sale. 34

Methods to Secure the Sale Best Practices. 34

Obtain credit insurance where it is available and makes commercial sense to do so. 34

Factoring. 35

Personal Guarantees. 36

UCC-1s. 36

Collections. 37

Collections Best Practices. 37

Account Reconciliation. 41

Accounts Receivable Administration. 43

Portfolio Review.. 43

Internal Controls. 44

Payment Application. 46

Bank Remittance Processing Options. 49

Chapter 1 - Section 2 Review Questions. 52

Answers to Review Questions. 53

Chapter 1 - Section 1 Review Questions Feedback. 53

Chapter 1 - Section 2 Review Questions Feedback. 55

Glossary. 57

Index. 59

Final Examination. 61

CPASelfstudy.com Course Evaluation. 64