Asset Management: There Is No Way To Collect Money.

The reason why cash is king is nobody in the management world.

The management department, which takes account of accounts receivable as its own responsibility, will undertake the important task of regenerating the cash flow of enterprises, but the way of collecting money is thorny and difficult.

This article will start with the confusion of the management staff and introduce some ideas of credit management.

Credit managers often complain: "the credit management department has always been in a very awkward position. Before the sale is reached, sometimes the customer will be asked to submit a guarantee because of the risk of the customer. The sales department will jump out and oppose it very much, and the boss will tend to sell at the same time.

But once the sale is completed, the accounts receivable will not be recovered, and the boss will point the finger at the management department, which is believed to be a dereliction of duty by the management department.

In reality, the CITIC departments often play a big role. Platinum financial training believes that this is due to the unclear division of powers and responsibilities.

Many enterprises set up the management department's original intention is to receive insufficient money, but if the establishment of the management department is not clear after sales and credit control who is the executive receiver, the management department as a collection assault team, then accounts receivable and bad debts will only get bigger and bigger.

If the management department is responsible for collecting accounts, then sufficient authorization and reward must be given, and the powers and responsibilities must be matched.

In most companies, sales are the first executors of receipts.

Bad debts are often caused by the omission of the sales department.

Some salesmen think that they can do everything well if they achieve the goal of performance.

Therefore, the top priority of the management department is to get the company's authorization, clarify the roles, responsibilities and rewards and punishments of the recipients, and carry out the performance management of accounts receivable.

Let sales realize that the company attaches great importance to the collection, and understand that the efficiency of collection is closely related to its personal interests. It is the premise and foundation for all the work.

Platinum recommends that the results of the receipts be added to the sales personnel's performance appraisal indicators. For those who are unable to earn money but are not strong enough, they can help them improve their collection ability quickly through training and assisting daily receivables. In the face of the ability to collect money, top sales, whose attitude is poor, can make use of personal career development to induce him to understand that both sales and receivables are equally important in the boss's mind. Outstanding receivables can help him to get a promotion and pay rise; for those who have poor receipts, poor salesmen should first encourage and supervise them, and if the incentive effect is useless, they will take measures to suppress them until the salesperson changes their attitude or is dismissed.

In order to carry out the work in detail, we can establish an assessment model based on the attitude (responsibility, execution) and ability (communication skills and experience of collecting money), divide the sales personnel into grades, and carry out personnel management and rewards and punishments according to the grading.

How to raise money to large customers has always been a difficult problem for every big enterprise.

Enterprise

It is inseparable from the huge orders of these customers, but they are not so reliable. In practice, arrears and bad debts often happen here.

We know

There is also internal approval process when receiving payment.

Decide whether the enterprise can receive the money smoothly.

We divide these jobs into barriers, auditor, user, finance, key person and decision-maker.

For example, A, a manufacturer of machinery, sells a large mechanical device to B, and the A's management department collectors on payment day.

Those who stand in the way are those who hinder payment. For example, the quality supervision department does not agree to pay on the grounds that the equipment is not up to standard; the auditor is the quality inspection and evaluation department; the user side refers to the production department; the finance is the financial personnel who is responsible for allocating funds; the key person is usually involved in the whole process of purchasing equipment, such as process engineer; the decision maker refers to the boss of B enterprise.

Obviously, it is obvious that the A company's management departments blindly go to B to collect debts, not to run around, so they may waste time on irrelevant personnel.

Platinum believes that the core of the bill is to track the progress of the payment process.

So how can we get into the client to understand the progress? We suggest that the enterprise can follow the form of the undercover, find the key people in the customer's business and give them the benefits, and let them provide information to help themselves.

Because the key people are in the customer business, they can get the first-hand information and feedback to themselves.

If you know that the reason for the refusal of payment is because the equipment quality is not qualified, then A can quickly arrange after-sales service personnel on-site maintenance and commissioning.

If B company's financial intention is found to be in arrears, then A can directly find the financial department to communicate, and the best payment can be made, if not, the written undertaking of payment shall prevail.

A key person's position may not be very high, which may be as small as a finance clerk or a receptionist.

As long as we can disclose the progress of the payment process and help the policy-makers find the decision makers, we must make good use of them.

After finding the decision maker, the information management department copies the reminder letter to the general manager, which is intended to attract the attention of the management of the other side.