SECRET IS IN THE INSIGHT,
YOU CAN’T FIX
WHAT YOU DON’T KNOW IS BROKEN
START BY EVALUATING YOUR CREDIT CONTROL SYSTEM
Cash flow is the very lifeblood of a business. In this regard, each business should consider whether it is doing everything it can to ensure that its customers are paying on time.
The most recent “Good Bad Ugly” Benchmark report identified debtor management as one of the key challenges facing firms, with 20% of firms nominating debtors as a key area of focus over the coming year.
Every business has different systems, procedures, methods and issues with getting paid. So let us look with fresh eyes at some of the key factors in running your credit control processes & procedures. Are you doing all you can to optimise your existing credit control system and get a regular influx of cash flow?
To prevent debt collection from becoming a serious problem, business owners need to put in place a formalised credit control process. To be most effective this should be run by a specific person or department, whose sole purpose is to chase and collect overdue debts in a timely and efficient manner. The problem is – most small businesses cannot afford this expense and many see it as unnecessary due to their size or their business volume.
Professional credit control is essential for the success of any business. Evaluation of the existing processes and procedures can help you identify the problems and can help you achieve your objectives to improve your cash flow and manage debt.