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Cash Receipts and Collections Best Practices Checklist

This document contains a checklist of best practices for cash receipts/collections and cash applications. It lists questions to determine the extent to which various practices are being followed in these areas. Answering the questions can help identify areas for improvement related to collections, prioritizing accounts, monitoring customer status, cash processing, and policies regarding deductions and short pays.

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Rodney Labay
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80 views2 pages

Cash Receipts and Collections Best Practices Checklist

This document contains a checklist of best practices for cash receipts/collections and cash applications. It lists questions to determine the extent to which various practices are being followed in these areas. Answering the questions can help identify areas for improvement related to collections, prioritizing accounts, monitoring customer status, cash processing, and policies regarding deductions and short pays.

Uploaded by

Rodney Labay
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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CASH RECEIPTS/COLLECTIONS BEST BUSINESS

PRACTICES CHECKLIST

This checklist contains a set of questions that can be used to determine the extent to which various best business
practices are being followed in the areas of collections and cash applications.

The answers to these questions will help to determine areas for improvement.

COLLECTIONS

Are the Following Practices Being Followed? No Partly Mainly Totally

Eliminate barriers to payment by offering customers multiple


payment options, flexible billing cycles and incentives to pay early.

Ensure that employees deliver consistent messages to customers


regarding company credit policies and goals.

Create a single point of contact for all incoming customer calls


regarding payments.

Use performance measures to select and monitor outside collections


agents, if it is cost-justified to employ them.

Prioritize delinquent accounts for collections follow up, allocate


appropriate collections resources, and provide real-time access to
customer information.

Develop, monitor and motivate collections specialists using individual


and team performance measures.

Effectively utilize technology to monitor the status of customers’


operations and changes in financial conditions.

In organizations with autonomous business units serving similar


customers, utilize technology effectively at the corporate level to
evaluate and monitor consolidated credit exposure with individual
customer accounts.

1 Source: www.knowledgeleader.com
CASH APPLICATIONS

Are the Following Practices Being Followed? No Partly Mainly Totally

Balance the workload among cash applications personnel to ensure


that all cash is processed on the same day it is received.

Implement lockboxes for receipt of all cash and consolidate


lockboxes to manage processing and maintenance fees.

Outsource cash remittance processing to banks whose remittance


processing information can be easily uploaded to the company’s
billing and collections system.

Separate bank reconciliation work from the depositing of checks.

Prepare wire transfer request forms electronically and email to


Shared Services.

Isolate customer short pays, deductions, and chargebacks from


routine processing and resolve via cash application specialists.

Develop and communicate a policy (internally and externally)


regarding the customer service philosophy and the pursuit of
deductions and short pays.

2 Source: www.knowledgeleader.com

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