OT: Incentive for AR Collections

  • Creator
    Topic
  • July 27, 2014 at 4:23 pm #187259
    jrosen92770
    Participant

    I am looking into modifying one of my employees bonus structure for AR Collections. Currently its based on 31-90 DPD not exceeding certain fixed amounts. Since our business has grown hitting the targets has become unattainable. I am looking at incorporating a percentage of revenue component. Does anyone have any experience that they can share on an effective bonus plan for AR Collections?

    BEC - 5/26/2013 75
    REG - 8/31/2013 82
    AUD - 11/24/2013 74, 2/9/2014 92
    FAR - 5/25/2014 85

    NY CPA

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  • July 27, 2014 at 4:29 pm #582650
    mla1169
    Participant

    No experience in receivables compensation based on results although I've done receivables forever. I wouldn't tie it to strictly revenue though, I'd be more inclined to tie it to DSO.

    FAR- 77
    AUD -49, 71, 84
    REG -56,75!
    BEC -75

    Massachusetts CPA (non reporting) since 3/12.

    July 27, 2014 at 4:32 pm #582651
    jrosen92770
    Participant

    Thanks Mia.

    BEC - 5/26/2013 75
    REG - 8/31/2013 82
    AUD - 11/24/2013 74, 2/9/2014 92
    FAR - 5/25/2014 85

    NY CPA

    July 27, 2014 at 9:30 pm #582652
    klink24
    Participant

    I'd consider a plan where the bonus is tied to quantity and quality. That way you know your people aren't harassing customers to get payment and that they are collecting ethically.

    FAR: 4/19/2014 - 85!
    AUD: 5/27/2014 - 90!
    REG: 7/18/2014 - 81!
    BEC: 8/13/2014 - 84!

    4 up, 4 down, in 4 months.

    Licensed 9/22 in NC.

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