Printer Friendly

Synchronize credit and sales strategies.

How often do you find that a customer with an overdue account is approved for a new order? Was there a disconnect between the sales and credit departments? Or, more likely, did the sales manager, eager to book an order, ask the credit department to "cooperate" and delay collection efforts?

That's not good business. But it often happens anyway because of the absence of a specific policy on overdue accounts. There may be times when loosening the credit standards makes good sense--as a courtesy to an especially good customer and with the CFO's OK. But it never should be an informal arrangement between the sales and credit departments.
COPYRIGHT 2005 American Institute of CPA's
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2005, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Author:Zarowin, Stanley
Publication:Journal of Accountancy
Date:Aug 1, 2005
Previous Article:AICPA Bestows Awards at spring council meeting.

Related Articles
Interpret a cryptic error message.
Golden business ideas.
The art (and science) of delivery: why more CEOs are becoming supply-chain experts.
Golden business idea.
Students have a say on issues.
Precision selling and the golden rule.
The role direct/relationship marketing plays in our company.

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters