How to Be Credit Controller - Job Description, Skills, and Interview Questions

Jun 9, 2021 / 5 Minutes Read / By Albert

How to Become

Professional Organizations

FAQ

Links

Rising consumer debt can have a serious effect on the health of the economy. When consumer debt levels rise, it can create a situation of unsustainable growth and can lead to economic downturns. This can have a negative impact on businesses, as consumers are less likely to spend money on goods and services, causing a decrease in sales and profits.

In addition, it can lead to increased credit defaults, meaning lenders may be unwilling to provide loans, leading to a reduction in capital available for businesses to invest. Furthermore, rising consumer debt can put pressure on the banking system, which in turn can lead to higher interest rates and reduced access to credit, creating further economic instability.

Steps How to Become

Obtain a relevant degree. To become a credit controller, you must have an undergraduate degree in finance, accounting or economics. Other degrees that may be beneficial include business administration, banking and financial services, and management.
Complete a professional certification. There are various certifications available to those wanting to become credit controllers, including the Certified Credit Professional (CCP) and the Certified Credit Executive (CCE). These certifications demonstrate your knowledge and skills in the field of credit control and are highly respected by employers.
Gain relevant work experience. Working as an intern or gaining volunteering experience in the finance field can help you gain the necessary skills for a credit controller role. You can also gain experience by working in an entry-level role in the finance department of a company or organization.
Apply for credit controller roles. Once you have obtained your degree, certification and some work experience, you can start applying for positions as a credit controller. When looking for jobs, consider companies that specialize in credit control, such as banks and financial institutions.
Network with industry professionals. Networking with professionals in the industry can help you stay up to date on industry trends and increase your chances of finding a job. Consider joining professional groups and attending networking events in order to meet other professionals in the industry.

A successful credit controller must possess a combination of skills, including knowledge of accounting and financial procedures, strong communication and negotiation skills, and the ability to remain organized and focused. The ability to efficiently manage the credit control process can significantly reduce the risk of bad debt and improve the cash flow of a business. This improved cash flow can have a positive effect on a business's profitability, as well as allowing it to grow and expand.

Effective credit controllers have an understanding of the legal aspects of debt collection, such as knowing when to pursue legal action and when to offer payment plans or debt restructuring. They also need to be proactive in identifying potential bad debtors. Finally, they must be able to effectively communicate with customers, to ensure that any issues that arise can be quickly and efficiently resolved.

You may want to check Corporate Accountant, Tax Manager, and Budget Accountant for alternative.

Job Description

Prepare invoices, statements, and other financial documents.
Monitor customer accounts for non-payment and delayed payments.
Follow up with customers on outstanding payments.
Negotiate payment plans with customers.
Resolve customer queries related to invoices and payments.
Reconcile accounts receivable ledger to ensure accuracy.
Prepare monthly reports on accounts receivable status.
File and maintain copies of invoices and other financial documents.
Assist with month-end closing activities.
Analyze customer accounts to identify areas of improvement.

Skills and Competencies to Have

Excellent numeracy, accuracy and attention to detail.
Strong organisational skills.
Ability to multi-task and prioritise workload.
Excellent communication skills, both written and verbal.
A good working knowledge of financial systems, process and procedures.
Ability to negotiate and mediate payment arrangements.
Proven ability to develop and maintain strong customer relationships.
Ability to work proactively, independently and under pressure.
Good IT skills, including the use of Microsoft Office Suite, Customer Relationship Management (CRM) software, accounting software and other related systems.
Ability to identify and resolve complex financial issues.

Good credit control is essential for any business to maintain a healthy financial position. A credit controller is responsible for managing a companys debt and ensuring timely payments are made. To be successful in this role, they must have excellent communication, organisation and negotiation skills.

They must be able to identify and manage credit risk, send out invoices and statements, and monitor customer accounts. Furthermore, they must be able to assess the financial stability of customers and decide whether to grant or withhold credit. Good credit controllers also have a working knowledge of accounting principles, and can use this knowledge to make informed decisions about the companys credit policies.

By doing so, they can help protect the business from bad debt and ensure that customers pay on time and in full. In addition, good credit controllers are able to anticipate cash flow problems and take steps to address them, helping to maintain the companys financial stability.

Financial Controller, Cashier, and Revenue Agent are related jobs you may like.

Frequent Interview Questions

What experience do you have working in a Credit Control role?
Describe a situation where you had to be firm but fair when dealing with an overdue account.
How do you communicate effectively with customers to ensure payment?
What strategies have you used to reduce debt levels?
How would you handle a customer who refuses to pay their overdue invoice?
What processes do you follow when collecting payment?
How do you stay up to date with new regulations regarding credit control?
Describe a time when you had to work under tight deadlines.
How do you handle difficult conversations with customers?
Describe your experience using credit control software.

Common Tools in Industry

Accounting Software. A computer program that records and processes accounting transactions within functional modules such as accounts payable, accounts receivable, payroll and trial balance. (eg: QuickBooks)
Invoicing Software. A software program that allows businesses to quickly create, send, and manage invoices. (eg: FreshBooks)
Debt Collection Software. A tool for collecting outstanding debts from customers, tracking payments, and managing customer accounts. (eg: Collectly)
Credit Reporting Software. A software program that helps companies to assess the creditworthiness of new customers. (eg: Experian Credit Report)
Accounts Receivable Software. A program designed to help companies automate their accounts receivable process and keep track of outstanding invoices. (eg: Sage Intacct)
Spreadsheet Software. A computer program used to store, organize, and analyze data in tables or spreadsheets. (eg: Microsoft Excel)

Professional Organizations to Know

Institute of Chartered Accountants in England and Wales (ICAEW)
Association of Chartered Certified Accountants (ACCA)
Institute of Management Accounting (IMA)
American Institute of Certified Public Accountants (AICPA)
Chartered Institute of Public Finance and Accountancy (CIPFA)
Chartered Institute of Internal Auditors (CIIA)
International Association of Credit and Collection Professionals (IACCP)
Federation of European Credit and Investment Insurers (FECIF)
Credit Services Association (CSA)
International Association of Credit Portfolio Managers (IACPM)

We also have Billing Clerk, Financial Reporting Analyst, and Investment Banker jobs reports.

Common Important Terms

Accounts Receivable. The money owed to a business by customers for goods and services provided on credit.
Credit Limit. The maximum amount of credit that a customer can borrow from a business.
Credit Terms. The conditions of the agreement between a business and its customer for the repayment of a loan or credit agreement.
Collection Letters. Written notices to customers reminding them that their payment is due and requesting an immediate payment.
Bad Debt. An amount of money that is not collectible due to a customer's inability to pay or refusal to pay.
Credit Risk. The risk of loss due to a customers inability or unwillingness to pay.
Credit Report. A report containing information about a customers credit history and creditworthiness.

Frequently Asked Questions

Q1: What is the role of a Credit Controller? A1: The role of a Credit Controller is to manage the credit risk of a business by overseeing the issuance and collection of invoices, assessing creditworthiness of customers and setting credit limits. Q2: What criteria are used to assess a customer's creditworthiness? A2: Criteria used to assess a customer's creditworthiness typically include their financial history, credit score, payment history, and any collateral they have to offer. Q3: What is an example of a document used by Credit Controllers? A3: Credit Controllers often use documents such as credit applications, credit reports, and financial statements to assess a customer's creditworthiness. Q4: What is a typical credit limit for customers? A4: The credit limit for customers can vary depending on the business and customer, but typically ranges from $500 to $10,000. Q5: What are the responsibilities of a Credit Controller? A5: The responsibilities of a Credit Controller typically include issuing invoices, collecting payments, setting and maintaining credit limits, analyzing customer creditworthiness, and minimizing credit risk.