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- Ten Tips on Deduction Management
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- Ten Tips on Prioritizing Work in the Credit Department
- Measuring Job Performance - Ten Tips
- Ten Tips on Customer Financial Statement Analysis
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- Ten Collection Do's and Don'ts
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- Ten Ways to Find Customer Financial Statements Online
- Ten Tips Relating to the Use of a Personal Guaranty
- Asserting the Ordinary Course of Business Defense to a Bankruptcy Preference Demand; Ten Tips
- Ten Tips on Filing a Proof of Claim
- Ten Tips on Professional Accreditation through NACM
- Ten Things Not to Say to a Customer
- Ten Tips About the Discharge of Debts in a Chapter 7 Liquidation Bankruptcy
- Ten Tips on Hiring and Training New Collectors
- Ten Tips on Building a Better Credit Application
- Ten Tips on Managing Change in Credit
- Ten Tips on Automating the Cash Application Process
- Making Effective Proposals
- Justifying the Cost of Collection Management Software
- Tips on Reducing Credit Risk
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- Ten Tips about Online Credit Training Programs
- Ten Tips on More Effectively Interacting with Customers
- Comments about Risk Management
- Ten Comments on the Roles and Responsibilities of the Credit Department
- The Roles and Goals of External Auditors
- Ten Key Performance Metrics for the Credit and Collection Department
- Tips on Stress Management in the Credit Department
- Ten Benefits of Online Training
- Ten Tips on Networking Online with other Credit Professionals
- Ten Tips When a Customer Closes its Doors
- Ten Ways Credit Managers get Fired
- Ten Key Financial Ratios
- Tips for Handling Difficult Discussions with Credit Team Members
- Ten Things Not to Say to Debtors
- Ten Tips on Attending Meetings
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- Ten More Meeting Tips
- Ten Tips on International Interactions with Customers
- Effective Teams, Ten Tips
- Tips on Creating Better Emails
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Ten Tips on Automating the Cash Application Process
- The use of auto cash application software to process customer payments enables the cash application team to perform higher value-added functions.
- A 50% auto cash processing rate would be considered low.
- With effort, auto cash rates can climb to 90% or higher.
- One benefit is that much of the drudgery of cash application can be eliminated using auto cash.
- Auto cash both simplifies and dramatically accelerates the cash posting process, making possible better credit decisions based on more current information.
- Another benefit of auto cash application is that this automation process should result in cost savings including the possibility of headcount reductions in cash application.
- Auto cash enables cash application personnel to focus on higher value activities such as addressing disputes and deductions more quickly.
- The benefits of auto cash include the fact that by using auto cash, the cash application handles only exceptions. An exception is a payment that did not post automatically.
- Understanding why certain customers payments cannot be matched means that the cash application team can either (a) change their system to improve its auto cash hit rate, or (b) discuss with customers specific changes that would result in a higher auto cash rate.
- This is proven technology. It is nowhere near the leading edge. Acquisition of established and field test software such as Auto Cash reduces the chance for problems in its implementation.
Copyright 2009 by Michael C. Dennis. All Rights Reserved