Top ten tips for improving your debtors – Tip ten
In many businesses, the ability to manage cash flow is crucial to success and as a result of manual and repetitive processes, management of the debtors is often a ‘painful’ task.
The recent turbulent economic environment only adds to the headaches of a credit control team and the introduction of effective tools to improve the collections process is arguably more important today than at any time in recent history.
Effective credit control and query management should enable your business to;
- Improve cash flow
- Reduce debtor days
- Increase customer service
- Cut the cost of cash collection
- Eliminate manual processes
- Speed up the query resolution process
Interactive Credit Analysis
Fundamental to credit management is the ability to measure the performance of every member of the team in a timely and effective manner. Safe Credit Control comes with a great series of standard reports, but to augment this and offer management the ability to expand the measurement of performance, the management reporting module offers cost effective but extremely powerful ‘slice and dice’ reporting using OLAP data cubes. By presenting comprehensive analysis of cash collections against targets, DSO days at all levels of the business, activity tracking across all credit controllers and easy to interpret ‘dashboard’ style analysis, the business can focus on its core functions.
A key element of an individual user’s reporting options is the Interactive credit analysis. For each user this presents an on screen aged debt report for all customers in their charge, analysing their debt into user definable buckets (30, 60, 90 days etc) alongside credit limits, credit insured value, total value of transactions under query, promised payments, current balance and unallocated cash. Each value may be drilled down to the underlying transactions with column sorting and exports to Excel available. Filter options allow the user to see all those customers on stop, customers who have exceeded their credit limit or are approaching it.
This dynamic interactive reporting capability provides a more conventional debt chasing facility but with all the supporting functionality of drill through and event generation, it offers fantastic tools to deliver rapid returns on time and effort expended by the users.
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