Spring is one of my favorite times of the year. As the weather begins to warm up and plants begin to grow and blossom, I think about the changes that will occur and how they will affect me both personally and professionally. What are the areas I am strong on that will benefit the company I work for as well as our customers? Are there areas I might be weak in and can work on improving?
As the weather warms up, it brings about increased business in multiple industries such travel, entertainment, hospitality, foods and, especially, construction. Since I work in the construction industry the warmer weather really affects my position. Increased sales means increased accounts receivable.
As spring begins, it is a good time to take a good look at look at your accounts, to think about where the risks may be. Which accounts seem to struggle to pay their balances each month or seem to have more problems than others? Are there accounts that usually increase the amount of work they do as the weather changes and how have they handled that in the past? Are there customers that are going to need increased credit limits? What is happening in the economy that may affect the overall quality of your accounts receivable?
We all know the one thing we can count on is change. Since I work in the construction industry, spring is a good time to review the credit worthiness of customers. When summer gets here it is too busy to take the time to work on reviewing accounts. As credit professionals, we have the tools we need to assist us in the process of reviewing accounts. The information we need is available through credit reports and industry groups through NACM, checking business registration and licenses online. Other tools, such as financial statements, information your salesperson has about upcoming projects, and customer visits can give you valuable information.
There is always more we need and can learn both professionally and personally. We are fortunate to have so many opportunities available to us to grow and obtain the knowledge we need through NACM. There are courses in all aspects of credit management, seminars, articles and National Credit Congress and Regional Credit Conferences. The networking with other credit managers is so valuable, it gives us the opportunity to ask questions of someone else that has experience who can encourage us to grow and learn.
by Joanne Martin, CCE, LKL Associates