Good credit control and management is important to maintain the company’s healthy cashflow. If a company has poor credit control policies in place, it may struggle collecting the money they’re owed.
Some businesses failed to create credit control procedures and hire credit controllers. This can result
to in delayed invoice payments and unpaid balances.
And according to an article in Xero, “fewer than half of invoices are paid on time and, before long, that takes its toll. Cash flow can become an issue, and chasing payments is a pain.”
What type of business would want to have that financial problem? No one.
Since credit control and management are not easy tasks, it’s extremely important for companies to have solid credit control procedures and hire specialists who have a clear understanding on credit compliance.
Having the right staff with the right training and skills will surely have a big financial impact in your business. Having someone with formal credit administration/control training can:
1. Help ensure receipt of timely payments.
2. Help create and uphold credit policies that follow compliance legislations and laws.
3. Help maintain and improve cashflow.
4. Ensure all legal requirements are followed when opening a new account.
5. Be comfortable following up with outstanding accounts
6. Understand the legal process when rehabilitating debtors or collections
Below are the qualifications or skills you need to consider to find the perfect candidate.
1. Bachelor’s degree on finance or any business-related course
2. Analytic skills
3. Good Customer experience
If you’re tired of having to monitor and chase unpaid invoices, then you either need help creating formal credit control procedures or get your staff trained on credit administration to keep the cashflow coming in.
Either way, it’s time to take these matters seriously and help your staff get trained on how to keep the business running smoothly.