Business Practices Archive

Spearheading daily challenges and taking on the unexpected is expected. But let’s face it—no leader can do everything by themselves. Why it matters: Delegation is one of the most essential skills of management. It not only takes some of the workload off the shoulders of a leader, but it gives your team the opportunity to grow and learn in the process. A delegation of authority is a document that identifies the most effective model of distributing responsibilities and power to those involved in certain decisions. The best example is how those at the entry level handle more routine resp…

During this Mental Health Awareness Month, we are exploring how credit managers can feel happy and fulfilled in their careers. Happiness is not merely a byproduct of success but a powerful catalyst for it. Credit managers must cultivate a positive mindset to find the true purpose of their role. Why it matters: The key is to leverage practical strategies to infuse joy and fulfillment into every aspect of being a credit manager. By the numbers: According to a Zipdo report, approximately 53% of Americans are currently unhappy at work while 85% of people are dissatisfied with their jobs w…

A credit report is a statement that includes all credit activity, both current and past, including payment history, credit limits and debt. Credit reports help credit managers uncover a customer’s risk level and likelihood of getting paid on time.

Timeliness is essential in the credit management profession, as delayed actions can result in missed sales opportunities, financial losses and strained customer relationships.

Audits are designed to ensure all financial reports are knowledge-based, factual and follow regulatory guidelines. The auditing process is important as it presents credibility to a set of financial statements—giving both shareholders and the company confidence in the fairness of all accounts. It can also help to improve a company’s internal controls and systems as a resource to better processes and find efficiencies in them.

The short answer is yes, the credit community can still find value in financial statements. But we may need to reconsider the way in which we think about financials.

Credit applications serve as the initial safeguard against risk. Risk reduction begins immediately upon receipt of a customer’s credit application, either digitally or on paper. But the role of credit applications in the customer onboarding process has evolved over time. Previously, credit applications served to establish a binding contract, but now, alternative methods may be used for this purpose.

The short answer is yes, the credit community can still find value in financial statements. But we may need to reconsider the way in which we think about financials.