Credit control can be defined as the management of a company’s cash flow. The quality of a credit control system can very easily be the difference between a company failing or succeeding in business. When making moves to become a paperless office, a company is likely to begin using electronic document distribution – in particular electronic invoicing, to request and receive payments of invoices. As the company will be pioneering a paperless credit control, they must adapt their credit control system accordingly.
Paperless Credit Control
Without paper, a credit control system will be based around receiving invoice payments electronically. For this, electronic invoicing must be the company’s main method of document distribution – although payments can still be made using the internet if a customer’s invoice has been sent via post or fax.
Customers who use electronic invoicing will be taken to a web portal which contains the invoice they plan to pay. To access this web portal a link from an e-mail must be followed, or a website found on a fax or postal invoice must be used. All credit control systems will use many checks to verify the customer before bank details are used and payments made on the electronic invoicing page.
With paperless credit control a customer will make payment so that money is transferred directly from their bank account into your company’s. This means money is transferred immediately and in real time, so good credit control means you can conduct financial transactions more efficiently.
Using a Credit Control System
When dealing with money, customers will be naturally wary of using the Internet. A good credit control system not only re-assures these customers, but also explains the credit control system in detail. It is equally important to have a number of staff fully trained on the system to deal with customer enquiries regarding both electronic invoicing and the credit control system.
As with all good document management, electronic invoicing will use a database to automatically make record of invoices that have been sent in by post, fax and e-mail. The credit control system should have a similar database in which it will make not of credit received or due. This database will be integral to good credit control and your company accounts. Assistance may be found when setting up a credit control system from sites such as Netsend or is4profit.com. This credit control task outsourcing may at times be cheaper and faster than training staff internally.