What does a credit controller do?

May 12, 2022

credit controller

Estimated reading time: 3 minutes

Demand for credit controllers remains high, even now the worst of the COVID crisis is behind us. Rising inflation is starting to bite for a lot of companies, which simply underlines the importance of efficient credit management. But what exactly does the role of credit controller entail?

But what exactly does the role of credit controller entail? The position is definitely multifaceted and its specific interpretation differs from company to company. Some organizations pay more attention to the analytical side, while other companies see it as a very executive role, with tasks including processing debtor invoices and following up with customers via reminders and phone calls.

Other names for credit controller include accounts receivable manager, credit analyst and credit manager.

What are a credit controller’s responsibilities?

As a credit controller, your main task is eliminating debtor payment delays; in other words, ensuring payment of outstanding invoices and expediting future payments. This is also known as accounts receivable management.

  • You follow up on customers who have outstanding invoices, which means you manage a specific customer portfolio. You also follow up on customers who have a payment arrangement or agreement in place.
  • You monitor incoming cash flows and by extension the company’s cash flow. You monitor incoming cash flows and by extension the company’s cash flow. You reduce the much-vaunted DSO figure by reducing the number of days invoices are outstanding.
  • You prepare, send and follow up on reminder letters. You maintain a current record of contact with these customers and follow up with them by phone if necessary. The relationship aspect is crucial here.
  • You follow up with customers when there are disputes such as blocked orders and you endeavor to resolve these disputes in the most customer-friendly way possible.
  • You give regular reports on the status of outstanding invoices, often on a monthly basis. This is also known as AR reporting. You then create an overview of outstanding amounts that lists both the good and less reliable payers, as well as statistics on your company’s KPIs. You can then share this overview with management, the CFO and other departments within the company.
  • You are often responsible for the master data in the ERP or accounting package.
  • You inspect and/or process daily financial transactions and receipts and you check for duplicate payments. You also handle the daily debit entries at banks. This way you ensure that the correct amounts are paid on the agreed-upon date.
  • You prepare account statements and manage general ledger accounts.
  • You handle collection by telephone and in writing if payments are not made on time. If you outsource collection, you are the contact person for debt collectors or collection agencies, ensuring that they have all the necessary information.
  • You establish and monitor credit limits. You draw up a credit risk policy and are responsible for the relationship with the credit insurance company. You evaluate the creditworthiness of existing and new customers and you share the resulting information with the sales department.
  • You may also be responsible for analyzing existing processes and proposing improvements as part of your job description.

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