[jrosen92770]

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

[mla1169]

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.

[jrosen92770]

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

[klink24]

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.

[Author]

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