Question for you – do you have a credit control process?
We all know that “cash is king” in a business and so there are 2 key things that need to happen to ensure that the cash is flowing:
1. The invoices are sent out
2. Unpaid invoices are chased and collected
Over the years I have lost too much money to people who I thought were nice people and good customers so they wouldn’t let me down, but ultimately didn’t pay. It wasn’t because they weren’t nice people, but for whatever reason they didn’t have the money and I was the one that lost out. Consequently I have got much tougher with my credit control process and I don’t continue to provide services if invoices aren’t paid. I’m always aware of what invoices are outstanding and they are chased from the moment they become overdue.
So when I met someone who was telling me about this fantastic software that he had to help with credit control, I was feeling quite smug ‘cos I thought I had it in the bag. What I hadn’t considered was the 3rd key thing that needs to happen (before the other two things in fact):
3. Credit check prospective customers
He was demonstrating how quick and easy the software makes credit checking and then chasing unpaid invoices, and it did dawn on me that at least one of my major losses would probably have been avoided had I credit checked the customer before taking them on – in hindsight I’m fairly certain that things would have been flagged up that would have made me think twice about ever taking them on.
So, if you think that your credit control process is a little under par, I would highly recommend you taking a look at Account Assyst software as it will give you a ready-made, easy to use credit control process which will help to protect you from bad debt in the future.