Credit control, simply put, is keeping the money that your customers owe you to a minimum – making sure you are paid promptly. Late payers could have a detrimental effect on your cash flow and as the saying goes, cash is king. Many profitable organisations have gone out of business because not enough attention was paid to collecting payments. It could also result in paying your creditors late and could affect your relationships. Bad relationships means poor negotiating positions when discussing prices, discounts etc. Good credit control also minimises the risk of accumulating bad debt – The longer a debt is owed, the less likely it is of ever being paid.
Here at SMART Bookkeeping we take a proactive approach to helping you have a positive cash flow. It is not all about chasing the debts but managing the process to ensure it does not become necessary. Of course, sometimes it is necessary and we can certainly do that for you.