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