One of the most important parts of any business would be the handling of the accounts receivables because receivables are money that has been earned but not yet collected. So it is actually income already but it has not been put into the hands of the business. Since it is the job of the business to collect these collectibles, there has to be a team that would receive accounts receivable training in order to handle the job.
Now when one would undergo this sort of program, he will be under a manager or a veteran who has been working in the collections department for quite some time. The teacher will first teach the students the definition of an accounts receivable and how to spot one. Of course he will also need to teach the students how to read some financial statements as well.
Now when it comes to the reading of financial statements, the main thing that the students will really have to know how to read would be the balance sheet because it is this that would contain the credit sales. Through the scanning of the balance sheet, one will be able to see an account title named accounts receivable. In there would be the total number of receivables.
Of course one would also have to know which collectibles belong to which entity. There will also be a list of all the collectibles that the company has incurred which would come from the journal entries. In this list, the student will see the person or company who owes money to the business and the corresponding amount that person or business owes.
After learning how to classify and read receivables, the next thing that one will learn would be how to run after debts. Now this would include making phone calls and sending emails regarding the payment of the debt. Now one will also be learning whether the debtor will be given a credit extension or not.
Now one of the things that the students will really have to learn about would be credit extension because this is a form of customer service. Sometimes, companies would offer credit extensions to loyal customers who would request. Now to know whether a debtor should be granted one or not, the collector has to check whether the company can afford it and how good the credit rating of the debtor is.
Other than those things, one also has to learn how to document each collection. First thing he would have to learn would be how to properly reconcile the collectibles in black and white. One has to make sure that he always has receipts or invoices from the collections that he made.
Now aside from updating his own records, he also has to update the company records. Now when a collection was made, one has to update the company records so that the upper management will know how much people still really owe the business. This is to keep track of all the money that goes into the business.
Now when one would undergo this sort of program, he will be under a manager or a veteran who has been working in the collections department for quite some time. The teacher will first teach the students the definition of an accounts receivable and how to spot one. Of course he will also need to teach the students how to read some financial statements as well.
Now when it comes to the reading of financial statements, the main thing that the students will really have to know how to read would be the balance sheet because it is this that would contain the credit sales. Through the scanning of the balance sheet, one will be able to see an account title named accounts receivable. In there would be the total number of receivables.
Of course one would also have to know which collectibles belong to which entity. There will also be a list of all the collectibles that the company has incurred which would come from the journal entries. In this list, the student will see the person or company who owes money to the business and the corresponding amount that person or business owes.
After learning how to classify and read receivables, the next thing that one will learn would be how to run after debts. Now this would include making phone calls and sending emails regarding the payment of the debt. Now one will also be learning whether the debtor will be given a credit extension or not.
Now one of the things that the students will really have to learn about would be credit extension because this is a form of customer service. Sometimes, companies would offer credit extensions to loyal customers who would request. Now to know whether a debtor should be granted one or not, the collector has to check whether the company can afford it and how good the credit rating of the debtor is.
Other than those things, one also has to learn how to document each collection. First thing he would have to learn would be how to properly reconcile the collectibles in black and white. One has to make sure that he always has receipts or invoices from the collections that he made.
Now aside from updating his own records, he also has to update the company records. Now when a collection was made, one has to update the company records so that the upper management will know how much people still really owe the business. This is to keep track of all the money that goes into the business.
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