The importance of having the right talent for your accounts receivable function
As we know, invoices are an asset to a business, and ultimately you want to maximise your chances of getting paid on time. With inflation and the cost of living increasing, it’s never been more important to have skilled accounts receivable and credit control professionals to protect your business’ assets.
Throughout 2023, we’ve seen an influx in credit control and accounts receivable talent, with many commercial finance teams growing their functions to ensure the smooth running of their departments. This in turn has resulted in a shortage of experienced talent for credit control functions.
In this article, we look at the importance of maintaining a robust accounts receivable process during periods of uncertainty, and our predictions for credit control talent in 2024.
The importance of a robust accounts receivable process
Accounts receivable relates to any money that a business is owed by its customers for goods or services. Once an invoice has been sent, and until it is paid, it becomes part of the business's accounts receivable. It’s therefore vital to have a robust accounts receivable process, because if customers don’t pay, you could face challenges in terms of paying your employees and suppliers.
The main responsibilities of an Accounts Receivable or a Credit Control professional can be multifaceted and complex, and candidates therefore need to be high-quality. Duties of an Accounts Receivable professional, for example, include following debt collection procedures, pursuing outstanding accounts, opening new accounts, sending out invoices, keeping an accurate log of all credit control activities and dealing with queries.
With the cost of living crisis ‘a bigger threat to firms than pandemic’, and extremely high inflation rates, it’s increasingly important to ensure you have the right accounts receivable team in place to protect your business and collect any outstanding payments.
Likewise, in terms of paying your own employees and suppliers, be mindful of paying your bills in good time, as consistent late or missed payment may cause reputational damage.
Why is the billing cycle so important?
A billing cycle, also known as a billing period or a statement period, is a recurring date on which a business issues invoices to its customers. Billing cycles are so important because they help you to understand when to charge your customers and collect your money owed. They also help your accounting or accounts receivable teams record the amount of revenue that is needed to collect.
Billing cycles are typically set at around one month, but can vary depending on the goods or service. When a cycle comes to an end, transactions from the billing period and any previous balances are calculated to establish the latest statement balance.
To ensure a business starts the next fiscal year with the right financials, any cash owed at the end of the previous fiscal year is generally added as credits on the income statement, and debits on the balance sheet. It is essential to maintain good cashflow and manage the accounts receivable process effectively within your business, so debts don’t grow out of control.
Predictions for credit control talent going into 2025
Whilst we’ve seen an increase in businesses wanting to grow their credit control functions, there are still some businesses that neglect their accounts receivable function, but a rise in costs and high inflation is posing big risks to their future. With 2025 just around the corner, bringing with it more economic uncertainty, there will be an increased need for many businesses to rectify this.
Robust cash collection is essential to running a business effectively, and it is beyond doubt that credit control talent will prove invaluable during periods of uncertainty, particularly going into 2025. Therefore, businesses that have not already planned to grow their accounts receivable function should consider doing so to avoid any financial problems that may arise.
We do predict, however, that even during uncertainty, property management businesses, including commercial property and private accommodation, will continue to boom, even during uncertainty.
How Marks Sattin can help you source accounts talent
At Marks Sattin, we are proud to be recruitment specialists of accounts receivable and credit control talent. We have decades of experience and pride ourselves on sourcing and screening high-quality accounts receivable and credit controller candidates that we know will be successful.
By establishing robust relationships, we are able to deliver the best candidates and services for our clients, ultimately helping them to save time, effort and money, and enabling them to focus on their core business needs.
Register a credit controller or accounts receivable vacancy with us, and let us help you find the best candidates to protect your assets.
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