As any FD knows, credit control is a vital function of any business.
In turbulent times, some businesses adopt the two-pronged approach of holding off creditors while trying to collect cash themselves. Close control of debtors is always a business fundamental, but juggling the books in this manner is not a sustainable way to do business.
Some businesses have damaged relationships with customers by being too pressing too soon and, having strung out payments until the last minute, they are now at the end of the queue in receiving service from suppliers.
There are a number of best practices that businesses can easily adopt to optimise cash flow and ensure their business remains profitable. Here, we take a look at the ways in which you can improve your internal processes, train your customers to pay promptly and adopt a more strategic view of cash flow:
Tags: credit control, financial software, business, paperless, profitability
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