Do you know how your finance team is spending their time? Do you know which activities are eating away at their time? Can you identify what your team’s strengths and weaknesses are?
Better yet, do you know what strategies are the most successful in collecting cash? How can you tell if an update to your credit control process makes a difference if you don’t have the right metrics in place?
Providing a full picture on performance metrics, and where they can be improved helps you get to a best practise credit control process.
If you want to add more value to your business and ensure you have a clear plan on what you will do next to make improvements, tracking team performance does just that.
Here are three reasons why:
Constantly improve your credit control process
By keeping track of your team’s activities, it will become clear which methods are the most successful in collecting the most cash. If phone calls to customers generate the best outcome you may want to ensure this is done to all late payers within a specific timeframe.
You can also dive into the detail and identify whether calling at a certain time of day helps collection success.
Set quantifiable goals
Quantifiable credit control goals provide you and your team members with the information needed to achieve key KPIs for your business.
Setting goals helps you to manage your finance team by setting expectations in an objective way. It also makes sure that your team stays focused on the key drivers of results.
Providing goals is beneficial for your team because it allows them to have a goal to shoot for both on an individual level and as part of a team, keeping team morale high.
With automated accounts receivable software, it is easy to set quantifiable goals and track and manage the performance of your department and team members.
Add value at your next board meeting
Having a robust process, with tangible metrics that can be reported on will enable you to provide real value and insights to your senior colleagues and your board.
They will be able to understand the size of the issue and the strategies you have in place to manage it; you’ll also be able to clearly demonstrate success over time.
Debtor Daddy is an on-demand, scalable credit control solution for businesses all around the world. Our purpose-built software and dedicated specialists will help you automate your accounts receivable. Plus powerful dashboards and reporting to better manage your finance team.