Lunchbox Learning - Credit Control Booster
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This document summarizes a credit control workshop presented by Nicky from DMGNZ. The workshop covers best practices for credit control, including performing daily reconciliations, maintaining an aged receivables report, making initial friendly contact with debtors, negotiating firm payment dates, documenting all interactions, and escalating to debt collection if needed. The workshop promotes a collaborative approach to credit control through open communication with customers. It also announces additional training courses on implementing positive debtor management systems and accounting best practices.
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Lunchbox Learning - Credit Control Booster
- 1. Lunchbox Learning Workshop Credit Control Booster 30th October 2012
- 2. Nicky @ DMGNZ Made first ever Credit Control call in February 2000!!! A QBE Qualified by Experience I Love Training!!! Problem Solver Work with Accountants Take a Holistic Approach
- 3. DMGNZ Our Mission To Support New Zealand Businesses to Develop, Manage and Grow. We specialise in Working as an Extension of our Clients Team!!!
- 4. DMGNZ We started as an Outsourced Credit Control Company Now offer a full range of back office services: Debtor Management Book-keeping Payroll Services Business Support Strategic Services Training
- 5. Credit Control vs Debt Collection Credit Control .The Fence at Top of the Cliff Debt Collection .The Ambulance at the Bottom
- 6. Before Giving Credit Account Application Credit Checks Type of Credit Credit Limits Written Confirmation
- 7. Making the Sale Check Credit Status of Customer Produce Invoice Register PPSR if required Send Invoice
- 8. End of Month Process Reconcile Bank Account Produce Aged Receivables Follow Strategies for Overdue Invoices Produce and Send Statements
- 9. The Art of Credit Control Good Credit Control is a daily process. Reconcile your bank statement daily. Clear your post office box daily. Communicate with key team members regularly. Action credits immediately. Make sure your Aged Receivables is up to date.
- 10. The Ideal Credit Controller Is a people person. Is NOT involved in sales or day to day client management. Has a working knowledge of accounts. Is familiar with the art of negotiation. Can stay the course.
- 11. The Process of Credit Control 1. Create an up-to-date Aged Receivables. 2. Check if there are any issues relating to any overdue invoices. 3. Make an Initial phone call to the debtor. 4. Do your research and follow up on any issues that arise. 5. Arrange a firm payment date or re-contact date. 6. Record all conversations & correspondence. 7. Follow your Credit Control policy if payment is not received.
- 12. Holding the Conversation You get more with Honey than Vinegar Build a Relationship with the Accounts Person. Keep it light and friendly. Allow them to save face. Get an exact date and amount, also method of payment.
- 13. Non-Confrontational Openers 1. Just looking at our aged receivables It looks like we havent received last months 20th, Just wondering when you released that? 2. We are just looking at our cash flow over the next few weeks and were wondering when you are releasing this months 20th?
- 14. Non-Confrontational Openers 3. I have just recently taken over the credit control role and our aged receivables is showing an overdue amount for you. I was just wondering if there is something I need to know? 4. Not sure you realise, but our terms are 7 days?
- 15. Arranging Payment Dates 1. Ask for a specific date that the payment is going to be released. Avoid statements like Next few weeks. In the near future. When our money comes in.
- 16. Arranging Payment Dates 2. Ask how the payment is going to be released. By Bank Transfer Follow up call following day. By Cheque Allow 3 days before follow up phone call
- 17. Arranging Payment Dates 3. Tell the Debtor you are going to call back, if you dont see anything by the given date. Sounds good, if I dont see it by XXX I will give you a call back on XXX The squeaky wheel gets the oil
- 18. Always Keep Notes!!!!!!!!!!!!! Keep a record of: Date and time of call. Who made the call. Detailed notes of the conversation. Expected date of payment. Note: Record everything; even small things can become important later.
- 19. Lastly Be Consistent Do what you say, and say what you mean. If payment is not forth coming Become clearer in your conversation. Send a letter outlining your expectations. Be clear that Debt Collection is an option you are prepared to take. Send pre Debt Collection Letter. Send the debtor to a Debt Collector.
- 20. Next Step Full Day Course Make Sure They Pay Implementing a positive debtor management system. Date: 19th November 2012 Time: 10.30 start Where: Here
- 21. Other Courses Know your ABCs - The building blocks of an integrated accounting system. A 12 session Training Program: - 6 x Half-day Practical Workshop Sessions - 6 x One-to-one Onsite Coaching Sessions Workshop 1 8th November 2012 Workshop 2 22nd November 2012 Workshop 3 6th December 2012 Workshop 4 TBA - 2013 Workshop 5 TBA - 2013 Workshop 6 TBA - 2013