Archive for March, 2006
FX Management: A Practical Basic Understanding
GO TO MAIN PAGE FOR ALL TOPICS COVERED UNDER FOREIGN EXCHANGE MANAGEMENT
As financial executives, it is crucial that we at least understand:
The reasons for managing foreign exchange (FX),
The types of foreign exchange exposure that we are faced with,
Some common terms used in foreign exchange dealing,
Some simple rules we should follow when transacting FX with FX dealers,
Why [...]
March 28, 2006
Posted in: Forex Management 
No Comments
Credit Management:What is the KPA and KPI of a Credit Manager?
In my article on the Role of Finance, I have included a topic on Targeted Performance Management (TPM).
By setting targets to the credit personnel employee, this will directly enable the objectives of the company to be achieved. The employee himself/herself will have a better focus and knows exactly what Managements wants from him/her and others.
The [...]
March 28, 2006
Tags: Credit control, credit department kpi, Credit management, What is Posted in: CREDIT MANAGEMENT/CONTROL, Finance Role/KPA/KPI No Comments
Credit Management: Costs in Extending Credit & ROI on Receivables
Costs in Extending Credit:
Do you know what are the costs in extending credit? Well, let’s hope that your answers include the following:
Cost of capital tied up in debtors,
Cash discounts,
Staffing costs of sales, ledger administration,
Expenses on printing, stationery, postage, space, equipment, etc.
Debt recovery costs, e.g. legal, credit insurance and debt collection agencies,
Bad debts.
March 28, 2006
Tags: extend credit, ROI on Accounts Receivable Posted in: CREDIT MANAGEMENT/CONTROL No Comments
Credit Management: Setting Up DSO Targets
Setting DSO target for Cash Collection
What if my director said to me, “I want you to achieve only 70 Days Sales Outstanding for this coming month September 2005.” How then do I calculate the cash required to achieve 70 DSO?
Illustration:
Assuming that for August 2005’s DSO is 75 days and the scenario is as [...]
March 28, 2006
Tags: Credit management, Days Sales Outstanding, DSO Posted in: CREDIT MANAGEMENT/CONTROL No Comments
Credit Management: Basic Collection Approaches, Types of Defaulters, Delaying Tactics and Signals for Potential Defaulters
Basic Collection Approaches:
There are many ways to try to collect. Do you know them?
Collection approaches can be broadly classified into:
Persuasion, e.g. “Pay now because it’s better for you…”
Coercion, e.g. “We’ll have to take other forms of action……….”
Education, e.g. “Your payment isn’t here. It is important to pay because….”
Problem solving / Emphatic, e.g. “How can we [...]
March 27, 2006
Tags: Collection Approaches, Credit control, Credit management Posted in: CREDIT MANAGEMENT/CONTROL One Comment
More Humour
The Boss Sign
The boss was complaining in our staff meeting the other day that he wasn’t getting any respect. Later that morning he went to a local sign shop and bought a small sign that read: “I‘m the Boss!” He then taped it to his office door. Later that day when returned from lunch, [...]
March 27, 2006
Posted in: HUMOURS/JOKES No Comments
Microsoft Stories
TRUE STORY
A computer user writes:
I once got an especially helpful reply to a question I asked on Microsoft’s online tech support service. I wrote back to thank them for a complete and concise reply, and said how much I appreciated it.
The next day I had a response:
“We are looking into the problem and will contact [...]
March 27, 2006
Posted in: HUMOURS/JOKES No Comments
