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Getting Started With Accounts Receivable
An introduction to the Accounts Receivable processPreview the first lesson free — get full access to all 7 lessons.
Intermediate Provider : Laura Onufrock 7 Lessons · 23m in Arabic, German, English, Spanish, French, Portuguese, Chinese
Course Description
In this course, you will learn about accounts receivable, or AR, and how implementing an AR system can benefit your company. Accounts receivable allows customers to make multiple purchases and pay for every purchase in a single bill in the following month. You will learn how to establish customer accounts, protect the company, and how this system will interact with other departments.
The AR system could affect your company’s sales, procurement, and existing accounting departments as it brings in new customer orders, inquiries, and processes. An AR system can benefit your company and your customers as long as you properly implement the system and manage it. Companies that take on accounts receivable will want to ensure that this new asset does not present too much risk. Risk is inherent to the AR system. In Getting Started with Accounts Receivable, you will learn how to evaluate potential customers, whether they be individuals or large businesses. To help you decide if an AR system is right for your company, this course will help you ask important questions to decide if the inherent risks outweigh the potential benefits. You will also learn about important internal controls to implement so that your AR system operates successfully.
What You'll Learn
- Understand the accounts receivable (AR) cycle and how an AR system benefits your company and customers
- Establish customer accounts and evaluate potential customers, whether individuals or large businesses, for creditworthiness
- Identify risk mitigation methods to manage the risk inherent to an AR system
- Implement internal controls so that your AR system operates successfully
- Assess the feasibility of accounts receivable by weighing the inherent risks against the potential benefits
- Manage how the AR system interacts with sales, procurement, and existing accounting departments
Key Takeaways
- Accounts receivable allows customers to make multiple purchases and pay for every purchase in a single bill the following month.
- An AR system can affect a company's sales, procurement, and existing accounting departments as it brings in new customer orders, inquiries, and processes.
- Risk is inherent to the AR system, so companies taking on accounts receivable should ensure the new asset does not present too much risk.
- An AR system benefits a company and its customers only when it is properly implemented and managed with important internal controls in place.
- Deciding whether AR is right for a company means asking whether the inherent risks outweigh the potential benefits.
Frequently Asked Questions
What is this course about?
It covers accounts receivable (AR) and how implementing an AR system can benefit your company, including establishing customer accounts, protecting the company, and how the system interacts with other departments such as sales, procurement, and accounting.
What will I learn to do in this course?
You will learn to understand the accounts receivable cycle, evaluate customers for creditworthiness, identify risk mitigation methods, and assess the feasibility of accounts receivable for your company.
Who is this course for?
It is for people deciding whether an AR system is right for their company; the course helps you ask important questions to weigh the inherent risks against the potential benefits and learn the internal controls needed to operate an AR system successfully.
What topics are covered in the lessons?
Lessons include an Overview of Accounts Receivable and Its Benefits, Lead and Customer Vetting, Accounts Receivable Communication and Conversion, Internal Controls and Accounts Receivable Solutions, and Credit Management, followed by a Test Your Knowledge section.
Does the course explain how to evaluate customers?
Yes. It teaches how to evaluate potential customers, whether they are individuals or large businesses, including vetting leads and customers for creditworthiness.
