From Excel to Excelling with Credit Management Software


From Excel to Excelling with Credit Management Software

It may come as a surprise, but a large number of businesses still rely on Excel for credit management. The UK, in particular, seems to be behind the rest of the world in adopting credit management software, relying instead on excel spreadsheets. However, companies are looking to the future. As a result, they are updating their systems and moving away from legacy systems. We are seeing a growing number of companies turning their backs on Excel. Alternatively, they are bringing in new credit management systems with a focus on improving time management.

One of the things holding credit management teams back from adopting software solutions is the perception that it poses a risk to their jobs due to its ability to automate credit management processes. Fortunately, while it’s true credit management software largely automates the dunning process, the perception that it will replace humans is mistaken. In fact, these solutions enable credit controllers to work smarter by freeing up time and resources to carry out more value-adding tasks.

What does credit management software offer that Excel can’t?

Firstly, organisations that use spreadsheets don’t get the best from their staff. With Excel, if a member of staff is absent, it can be difficult to figure out where they are with certain tasks. Therefore, it’s extremely difficult to reallocate tasks to other team members. Whereas, with CreditManager, for instance, it is possible to reallocate tasks and have full visibility of the sales ledger. Credit management systems allow credit managers to have greater access to other employees tasks. They are able to easily and accordingly reallocate tasks at the touch of a button.

Human-error is also a big consideration and concern when working solely in spreadsheets as typos or errors are more commonplace. Excel doesn’t pick up on the mistake and the user often doesn’t have time to double-check their work. Subsequently, those errors often go unnoticed, resulting in incorrect information being sent to a customer or appearing on their account.

Contrastingly, with credit management solutions, users can update the system with what they have done and the system will engage with that. Plus, as more tasks are automated, it is possible to completely remove the risk of human error from some tasks. In addition to this, credit controllers can set alerts and reminders within the system to ensure that they remember to carry out certain tasks. This takes some of the onus off credit managers and ensures important calls, for example, aren’t forgotten.

How do credit managers benefit from software solutions?

Thanks to task-automation and ease of use of credit management software, credit controllers and credit managers have more free time. This allows them to use their time better. Rather than carrying out more menial tasks, they can focus on more value-adding, important and interesting tasks. For example, credit managers can then spend more time building up important customer relationships. After all, less time spent on cash allocation and sending out dunning letters means more time spent on tasks that are truly important to the organisation.

As businesses start to work smarter, rather than harder, the move from Excel to software solutions will continue. It is important organisations understand that this move isn’t about reducing staff numbers. Rather, it is about getting the most out of their staff. This is a vital step to take as credit management is continuing to evolve. In order to keep up with this, organisations must adopt the right processes and systems and allow their employees to focus on the bigger picture issues.

Curious how our cash allocation software can optimise your reconciliation process?
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