Credit Management is an Extra Job
I’ve always believed that as soon as you offer credit you’ve got yourself another business – a credit management business.
When we first created our MYOB Daily Transactions course we designed it to take students through the cashflow process of where money goes when it first leaves your bank account and these are the main steps:
- Money in the bank (cash asset)
- Buy stock (inventory asset)
- Products sold on account (accounts receivable asset – Trade Debtors)
- Customer pays their account (cash asset)
The interesting part of this business process to me is the marketing (choosing the products, pricing, marketing message and advertising) and the credit management to get the money back.
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