Credit management is a big aspect of running a business, if your money isn’t managed and your cashflow isn’t stable, your business could go downhill fairly quickly. We know it can seem like you need to fit the world into a day when running any business, especially a start-up or a small business. At the beginning of a business, it can be quite difficult to fit in everything you need to do in the finance department with everything else you have going on in the company, therefore some tasks may be overlooked. Getting overwhelmed with things to do could mean it’s time to start introducing automated processes.
When it comes to your accounts, many companies could benefit from a little help. Whether it’s an assigned person to handle the finances, an Accountant or a Credit Manager, every company will have someone sending out invoices, checking you are getting paid and keeping an eye on the money coming in and out of the business. The biggest thing that causes delays during the payment process is incorrect or delayed invoices. By having a dedicated finance professional that can help you ensure that your bills get sent out in a timely manner you are doing everything you can to get paid on time.
Automated processes can help a business no end, it can minimise the number of mistakes caused by human error and frees Credit Managers up to worry about other things within the company. But could you benefit from it?
Research suggests that companies pay better when they are in a routine of paying at the same time every month, therefore if an invoice gets to them late or incorrect it could upset their routine of payment and it will be delayed getting back to you. Having automated invoices can take away the worry of delays with the invoice, allowing you to be reassured that you have done everything you can to get paid on time.
Automated bulk credit checking
Another job of a Credit Manager would be to check the creditworthiness of potential customers you could be going into business with. If you’re a growing business and getting more and more leads and enquiries every day, sooner or later your Credit Manager’s time will be massively taken over by credit checking. If you receive a massive amount of interest in your company, you can send the list of companies to Creditsafe who can credit check them in bulk, saving your Credit Manager a lot of valuable time.
Automated monitoring of existing customers
Something that many companies fail to do when doing business is to monitor their existing customers for problems. Many companies think that once they have signed a contract with a customer who has been previously credit checked that they are forever safe. This unfortunately is not the case. Circumstances can change rapidly and a company that is creditworthy now may not be in 6 months’ time. Always monitor your customers to see if any changes are occurring on their credit report that could affect them paying you. Manually going through all your customers’ credit reports will undoubtedly take up precious time for your Credit Manager or Accountant which is why we suggest having an automated monitoring system in place. Creditsafe offer Risk Tracker, which is a tool that monitors your customers’ credit reports and alerts you if anything changes on them. With this going on in the background, your Credit Manager can get on with other duties.
But the all too familiar question will always sit at the back of your mind- ‘do I really need it?’ The best advice we could give you is to monitor your finance department and see if they have the time to do everything that they need to do to keep the business afloat. Are they managing to complete all their tasks or are some aspects of their role slacking? The last thing you want is your Credit Manager to be so tied up chasing payments that they neglect credit checking new customers, or vice versa. Our advice is to use automated systems such as Risk Tracker from day 1, so you will never be left unprotected against risks that could come your way.
If you would like to find out more of the automated processes we offer here at Creditsafe, please visit creditsafeuk.com.