Tag: bookkeeping
-
How to Evaluate Customer Creditworthiness Before Extending Credit
Extending credit to customers can be a great way to foster long-term business relationships and drive sales. However, failing to assess a customer’s creditworthiness properly can lead to late payments, bad debt, and cash flow issues. Evaluating creditworthiness before extending credit is essential to minimizing financial risk while maintaining customer satisfaction. Understanding the Importance of…
-
The Pros and Cons of Outsourcing Your Credit Control
Effectively managing credit control is vital for cash flow, yet in-house handling can be challenging. Outsourcing offers efficiency and expertise but may compromise customer relationships and incur costs. Businesses must assess their specific needs, balancing efficiency, customer service, and expenses to determine whether outsourcing or in-house control is preferable.
-
The Impact of Late Payments on Cash Flow and How to Prevent Them
Late payments can be a real headache for businesses, no matter their size. They mess with cash flow, make operations more complicated, and can even put a strain on financial health. Let’s take a look at how late payments impact cash flow and what you can do to prevent them. How Late Payments Affect Cash…
-
Top 10 Best Practices for Effective Credit Control
Effective credit control is essential for businesses to maintain cash flow and mitigate financial risks. Key strategies include establishing clear credit terms, assessing customer creditworthiness, automating tasks, setting sensible credit limits, maintaining accurate records, invoicing promptly, following up on payments, resolving disputes quickly, offering easy payment options, and regularly reviewing processes to enhance efficiency.
Credit Control Club 