There are no prerequisites.

Course Description

If a company's existence is measured by revenue, then its lifeblood must be how well it manages accounts receivable. Many business executives say that a sale isn't a sale until the money has been collected. This course reviews best practices in the accounts receivable function of small to medium commercial entities as it relates to invoicing and pricing. It also focuses on credit best practices including credit evaluation, use of Z Score and other methods of securing customer payment when open-ended credit is deemed too risky. This course also explores collection best practices, including those related to account reconciliation. Payment application, internal controls, and available banking technology are also reviewed.


Joseph Helstrom, CPA

Joseph Helstrom, CPA, is a partner at CFO Resources, LLC, a company focused on training and courseware for CPAs. He’s also the owner of Mill Creek Publishing LLC. Joe has over 30 years of experience as a CPA in both public accounting and industry, with extensive experience in financial reporting and analysis, treasury, tax, information technology, legal and regulatory matters, and strategic planning.

After graduation from Butler University with a degree in accounting, Joe got his start at Ernst & Young. Subsequent to that, he has served for several different companies as a chief financial officer; director of treasury and tax; controller; and manager of financial planning, reporting, and analysis.

Joe and his wife, Patricia McCarthy, produce self-study courses for Western CPE and have published articles in Missouri and Texas CPA society publications titled “Incorporating Excel Arrays into Your Audit Plan.”

Course Specifics

Jan 17, 2018
There are no prerequisites.

Compliance Information

Qualifies for CA Fraud: No

Learning Objectives

Upon successful completion of this course, participants will be able to:

  • Associate the importance of the billing, pricing, and credit memo process to accounts receivable best practices
  • Differentiate between customer credit evaluation techniques
  • Define and use the Altman Z score and other ratios in evaluating customers
  • Recognize nontraditional methods to secure customer payment
  • Recognize best practices to the collection function
  • Associate the importance of internal controls with the payment application function

Table of Contents


Learning Objectives


Written Policies and Procedures

Accounts Receivable Process Overview

Sales and the Accounts Receivable Management Process

Best Practices – Sales Processes

Case Study


Best Practices – Customer Credit Evaluation

Tier 1 Customer Credit Analysis

What Business Credit Reports are Available?

Sample Tier 1 Credit Matrix

Illustrative Case of Tier 1 Customer

Tier 2 Customer Credit Analysis

Working with Internally Prepared Financial Statements

Financial Ratio Analysis

Operating Cash Flow Ratio

Cash Interest Coverage Ratio

Current Debt Coverage Ratio

Example of Financial Ratio Analysis

Operating Cash Flow Ratio

Cash Interest Coverage Ratio

Current Debt Coverage Ratio

Altman Z Score

Computation of Z Score using example data

Sample Tier 2 Credit Matrix

Credit Approval

Credit Monitoring

Best Practices – Customer Monitoring

Case Study – Tier 1 Customer

Case Study – Tier 2 Customer

Methods to Secure the Sale

Methods to Secure the Sale Best Practices

Obtain credit insurance where it is available and makes commercial sense to do so.

What is Trade Credit Insurance?

How Trade Credit Insurance Works

Benefits of Trade Credit Insurance

U.S. Trade Credit Insurers


Personal Guarantees



Collections Best Practices

Account Reconciliation

Case Study

Accounts Receivable Administration

Portfolio Review

Internal Controls

Case Study

Payment Application

Case Study

Bank Remittance Processing Options

Review Questions

Review Question Answers and Rationales



Qualified Assessment

Answer Sheet

Course Evaluation


Choose Your Preferred Format

Online Access

Get immediate access to a robust collection of learning and reference materials, allowing you to dive deep into the information you need. Our self-study materials are authored by top-quality, industry experts who focus on helping you grasp concepts quickly using real-life examples. Download your CPE to any device, and take it with you so you can learn when and wherever you want. Complete your CPE with an online exam, and enjoy instant grading with the option to print your certificate immediately upon passing.

online access
Hard Copy

Our self-study materials are authored by top-quality, industry experts. You’ll receive a bound notebook of all the course materials, shipped to you within one business day. In addition, you’ll also have full online access. Each self-study package includes a robust collection of learning and reference materials to help you cover the information efficiently and put it into practice immediately.

hard copy
Self-Study Video

Experience high-quality instruction with our Self-Study Videos, available to you 24/7. With more than 80+ videos currently in the Western CPE Self-Study Video library, you can see and hear our expert instructors deliver the information you need in a dynamic way that allows you to immediately apply your learning. Unlike a live course or webcast, you can complete the course on your own time, playing and pausing as needed. Self-Study Videos allow you to complete your CPE requirements on your own time.

hard copy

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