Difficulties of being a credit manager in business today

“My department handles cash application, credit risk and credit releases. We are responsible for documenting and resolving disputes and deductions. We have huge reconciliations that need completed. I also must deal with the GE’s of the world that tell you when they want to pay and how much, and when a problem arises, look out, it takes hours to resolve.”

“Then I have to manage the collection function.”

“I am understaffed but asked to perform all of the above functions. We are always putting out fires and doing the “have to” functions. We are then asked to execute a collection strategy that will reduce DSO significantly below where we are today.”

“I can do it. No doubt about it, if I had the tools and resources. I need staff, and not just a bunch of temps, but we are under headcount restrictions. I need a collection software package, but those are pricey and the investment was rejected."

“I need to get away from the everyday collection details that consume so much of my time. We can only really make collection calls on accounts placed on credit hold. This approach helps, but we simply do not have the time and resources to carry out a more comprehensive strategy for reducing DSO.”

“I hated the idea of co-sourcing at first. I thought, just give me the people and systems. But after looking at the cost, particularly compared the co-sourcing option, I immediately knew adding staff and investing in the systems was a non-starter. Then I realized that my plate is full now, imagine adding staff…and a system implementation on top of that.”

“We chose to co-source, and we are a much better department now. Still extremely busy, but doing the right things and doing them well.”

“In the past, I was that ‘credit gal’ who everyone thought was holding back sales by putting customers on hold. Last week, I spent time with the Sales Director reviewing terms and conditions of a new large order, looking to proactively resolve problems. Yesterday I spent time with the customer service department discussing ways to reduce the number of pricing and freight errors on invoices. These are things that I never had time to do in the past. I’m more visible and effective.”

Credit leaders should ask themselves:

  • Am I under headcount restrictions, but asked to do more?

  • Am I asked to perform an intensive function without the investments in systems and technology?

  • Am I under pressure to hit cash targets without the staff and resources needed to do the job?

  • Am I mired with managing the contact function thus keeping me out of interdepartmental issues and higher visibility issues?

  • Do I have under-performers on my staff that weigh me down and consume my time?

  • If I had time to focus intensely on fewer higher priority issues, could my department’s overall performance improve?

Unleash your potential: Get the day-to-day collection activity off of your desk.

Outsourcing payroll is commonplace in business today. Twenty years ago, HR managers were buried in payroll. Now, smart HR managers outsource payroll and thus are free to play a larger role within their organizations. The prestige of a career in human resource management has grown as a result. Outsourcing payroll was a huge boost to the occupation of HR Manager.

A/R co-sourcing provides the opportunity for a huge boost to credit managers.