Why do for profit organizations exist??? To make money!!!!! What a great concept. But if the organization does not have the proper collections and credit procedures in place, they may not be able to access that money. Hence the importance of the credit and collection process.

Credit and collections are critical areas for the financial statement controllers. Customer credit is a form of payment that allows small business customers to purchase a product or service before paying for it in full. The process works similarly to the way a credit card does - you procure something and pay it back later. Collections is a term used by a business when referring to money owed to that business by a customer. When a customer does not pay within the terms specified, the amount of the bill becomes past due and is sometimes submitted to a collection agency.

The sales and collection process includes business activities related to selling products and services, maintaining customer records, billing customers, and recording payments from customers. It also includes activities necessary to manage accounts receivable, such as aging accounts and authorizing credit.

This course delves into the topics that impact the sales, credit and collections process for management. We discuss strategic steps management can take to ensure their processes are efficient and that they are able to actually collect their revenue.

Learning Objectives
  • Discover and define how the sales and collection process intersect.
  • Explore and define the collections process.
  • Identify and understand the challenges of the collection process.
  • Identify steps to include in the collection process.
  • Recognize the Collections in today’s world.
Last updated/reviewed: August 12, 2023
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Included In Certifications

This course is included in the following Certification Programs:

20 CoursesThe Controllership Series Certification

  1. The Controllership Series: The Controller Function - Elevating the Role
  2. The Controllership Series: The Controller Function - Strategic and Annual Planning
  3. The Controllership Series: The Controllers Role in Financial Forecasting
  4. The Controllership Series: Future Role of the Controller – Part 1
  5. The Controllership Series: Future Role of the Controller – Part 2
  6. The Controllership Series: The Controller Function - Cash and Investments
  7. ASC 842 Accounting for Leases - Deep Dive
  8. The Controllership Series: The Controller Function - Inventory Part 1
  9. The Controllership Series: The Controller Function - Inventory Part 2 - Inventory Valuation, Physical Inventory Methods and Inventory fraud
  10. The Controllership Series: Overhead, Direct and Indirect Costs and Allocation Methods
  11. The Controllership Series: Financial Statement Preparation and Presentation
  12. The Controllership Series: The Controllers Role in the Procurement Function
  13. The Controllership Series: The Role of The Controller in ESG
  14. The Controllership Series: The Controllers Role in Pro Forma Financials
  15. The Controllership Series: The Controllers Role in Data Analytics and Big Data
  16. The Controllership Series: Introduction to the Financial Close Process
  17. The Controllership Series: Managerial Accounting Basics and Cost Principles
  18. The Controllership Series: Sales, Collections and Customer Credit
  19. The Controllership Series: Addressing Cash Flow and Forecasting Uncertainty
  20. Tools for The Controllership Series Certificate
18 Reviews (89 ratings)

Reviews

4
Anonymous Author
It was a good refresher. I wish it discussed more about best practices or industry standards, but it was a good general high-level overview.
5
Member's Profile
This course is an extremely complete high level overview of the quote to cash process, focusing on the collections process. The information is valuable and a good resource to provide for insight into the collections process for a company.
4
Member's Profile
interesting course and very relevant in today's business world. I do suspect that the actual steps and approaches are very industry and firm specific, but these general examples were a good entry level primer.
5
Member's Profile
This was a good overview process of theory and practical application of the Quote to Cash cycle. It would be relevant to most Billing/AR/Credit/Collections teams.
4
Anonymous Author
Overall good explanation of the sales and collections process. This can arm controllers with useful tools to improve collections and better manage their AR.
5
Anonymous Author
This course is a good reference for the the sales & collection process works within an organization. Many small businesses do not understand this process.
5
Member's Profile
Lynn’s course on Collections and Customer Credit was excellent! Very well organized and actionable ideas for Credit Depts
5
Member's Profile
very good clear objectives, good tips and advice, I enjoyed the course very much and will use it in a practical way
5
Anonymous Author
Excellent course on Sales, Collection, and Customer credit with practical examples and journal entries.
3
Anonymous Author
Well explained, good presentation. Topics were pretty basic for a controllership series, though.
5
Anonymous Author
Very introductory course. Good for a new accountant, but seems a little basic for a Controller.
5
Anonymous Author
Good course overall. Good as a refresher and some common sense ideas to keep front of mind.
3
Anonymous Author
Good overview of A/R concepts. Helpful summary of collections and collections cycle.
5
Member's Profile
Straightforward step by step explanation of the sales and collection process.
5
Member's Profile
The Controllership Series is a good introduction to many different subjects.
4
Anonymous Author
Good summary of the cash collection process and how to handle customers.
5
Anonymous Author
Clear and concise course and material. Met learning objectives.
3
Member's Profile
Large amount of typos. The slides appeared sloppy.
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Prerequisites
Course Complexity: Foundational
No advanced preparation or prerequisites are required for this course.
Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
  Course Overview CPE
Course Syllabus
INTRODUCTION AND OVERVIEW
  Introduction to The Controllership Series: Sales, Collections and Customer Credit5:03
  Sales Process9:26
  Sales and Collection14:22
  Collection Process10:38
  Procedures for Collections8:06
  Collection in Today's World7:56
  Credit Cycle19:06
  Summary1:02
CONTINUOUS PLAY
  The Controllership Series: Sales, Collections and Customer Credit1:15:30
SUPPORTING MATERIAL
  Slides: The Controllership Series: Sales, Collections and Customer CreditPDF
  The Controllership Series: Sales, Collections and Customer Credit Glossary/IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam