Like many of us who are visually challenged, I had to undertake my yearly eye test today – and whilst it was an inconvenience to go and get it done (and going through that puff of air in the eye test that I hate!) – it proved worthwhile for one thing – I learnt today that there was a better brand and type of contact lens that was more suited to my specific circumstances.
Had I ignored the reminders from my optometrist, I would have continued to use an inferior and not fit for purpose product, potentially risking the long term health of my eyes.
Your credit management and accounts receivable processes need regular checks and tests too, just like your eyes (or any other part of you for that matter).
Without regular checks and tests, we can become complacent with our processes and moving parts, easily accepting inferior or no longer suitable process, products or services and a ‘that’s just the way it is’ or ‘this is normal’ mentality – which can lead (and it will, trust me) to potentially painful, problematic and costly reactive activity down the track.
With changes to legislation and regulation, shifting payment trends, an uncertain economy and constant innovation in automations and payments technologies all contributing to a consistently changing landscape, a smart and adaptable credit management policy and regular ‘check ups’ will improve cash flow and instill confidence in the overall ‘health’ of your receivables portfolio.
Don’t be blind to the need to check and test your credit and accounts receivable processes at regular intervals (and your eyes!), you will be ensuring that your processes are current and fit for purpose and save yourself a lot of pain, inconvenience and money down the track.