Functions Of A Credit Controller

The role of a credit controller is to analyze and investigate both outstanding receivables and future potential receivables, which may be past due or not, to determine the likelihood of collecting them. They will typically work to resolve issues directly or through referrals to other team members within the department, including Debtors, Credit Managers, Relationship managers.

They keep things organized and streamlined

By implementing and monitoring financial procedures and controls, controllers help to ensure that the company’s money is being spent most effectively and efficiently possible. This can lead to savings and improved cash flow.

They keep an eye on the big picture

Credit controllers are often responsible for forecasting and preparing reports which give an overview of a company’s debtors, their aging, and any trends which may be developing. This information can be used to make strategic decisions about, for example, how much credit to offer to certain customers.

They act as financial advisers

Financial controllers are often asked to input budget proposals, major investments, and other strategic decisions. They need to have a good finance understanding like Harvey Bell on how each decision will impact its finances to give an opinion.

They safeguard the interests of the business

A good credit controller should watch other departments’ spending and warn when costs look like they could spiral out of control. They also need to ensure that the company is not spending money on projects that would not benefit their long-term strategy.

They can pull together information from various sources

Because controllers need to verify and analyze account information, they must have a strong understanding of how business transactions work and where all the numbers come from, e.g., accounts receivable, payable, etc. This requires in-depth knowledge of the entire finance department’s processes and strong communication skills.

They manage cash flow

Credit Controllers are responsible for forecasting short-term liquidity needs and making recommendations on optimizing the company’s cash resources. This includes developing Accounts Receivable (A/R) and Accounts Payable (A/P) policies and creating guidelines for making payments to suppliers, employees, and other stakeholders.

They provide financial reports

Financial controllers compile detailed monthly, quarterly, and annual reports that track a company’s financial performance against set goals. This information is used by upper management to make informed decisions about where the business should be heading in the future.

They keep an eye on industry trends

To make accurate predictions about future revenue, controllers need to be up-to-date with the latest industry trends. This means tracking movements in things like stock prices, foreign exchange rates, and commodity prices. Credit controllers need to keep customers and suppliers happy to ensure that the company can continue receiving goods and services.

They manage risk

A good financial controller will identify potential risks that could impact the company’s bottom line and make recommendations on minimizing these risks. For example, they might suggest hedging against currency fluctuations or investing in risk management software programs.

They help during audits

Financial controllers are often required to provide documentation and explanations during audits by government agencies or private lenders. This can lead to extensive cooperation with other finance department members and outside consultants when required in their department.

They keep up with changes in legislation

To ensure that the company is compliant with all the latest regulations, controllers need to be aware of changes in financial legislation. They will then need to update departmental procedures accordingly to follow the rules.

Credit controllers are responsible for providing accurate information about the company’s financial performance to make better-informed operational and strategic decisions. They need a high level of knowledge and expertise, both at an industry and company-specific level since they play a key part in many different business processes.