Managing company cash flow is one of the fundamental aspects of operating a business, especially when times get tough. Poor cash flow caused by payment delays and mounting debts cause many businesses to fail. Enter the credit controller — a key player in the wider finance and accounting team.
Credit control is a critical part of a well-managed business and helps improve the cash flow. A career in credit control, receivables, and debt recovery can offer great rewards, not only from a personal satisfaction and financial viewpoint but job stability and career growth, too.
Our finance experts share what makes a great credit controller, how much you can expect to earn at the top of your game, and career progression opportunities for the role.
What does a credit controller do?
A credit controller recovers funds owed by customers, clients, or businesses. They sit within the wider finance and accounting team and — depending on the team size — typically report to the Financial Controller.
As a credit controller, your primary function is to keep money flowing into the business. You'll be running credit checks on new customers, upholding company payment terms, chasing late payments, and reconciling the month-end accounts.
A career in credit control offers a degree of flexibility regarding your employment options. You can choose to take a role as part of an in-house finance and accounting team for a single employer or join an agency that provides outsourcing for several clients.
Credit controller duties and responsibilities
A credit controllers duties sit neatly between finance and customer service. They include:
- Managing and maintaining the sales ledger
- Creating and maintaining effective payment procedures and policies
- Managing financial relationships with customers and clients
- Reducing how many debtors the business has
- Evaluating new credit requests
- Monitoring debtor account balances
- Managing customer enquiries
- You may be involved in query or dispute resolution, working closely with different stakeholders to achieve a satisfactory conclusion for your employer and that of the customer
- Negotiating payment terms and payment plans
“Having clear processes for collecting payments, credit scoring potential customers, good communication, and strong customer relationships all help credit control,” says Jermaine Lynch, Practice Director at Robert Half.
What skills does a credit controller need?
Successful candidates should ideally have a bachelor's degree in finance, business, or a related subject. A strong CV will also show previous experience working in an accounts receivable environment.
Skills and qualifications:
- A degree or qualification in a related subject (mathematics, accounting, business, etc.)
- Chartered Institute of Credit Management (CICM) qualification is beneficial
- Excel and ERP systems experience
- Previous experience in accounts receivable
Soft skills
A credit controller role is as much about soft skills as it is about qualifications. Because a large part of the role is customer-facing, credit controllers require high levels of tact, diplomacy, charisma, and resilience.
- Confident and assertive
- Good business acumen
- Good interpersonal skills
- Excellent problem-solving skills
- Resilience
- Attention to detail
- A keen eye for detail when dealing with reconciliations and identifying triggers on customer accounts
- An inquisitive and questioning approach to troublesome accounts
- Methodical and proactive approach to late payers and the control of the AR ledger
- Tenacity to chase down the payments
- Satisfaction from achieving results in a target-driven environment
How much can a credit controller earn?
A credit controller based in the United Kingdom can expect to earn a starting salary of £25,000 and can achieve anything up to £32,500, according to data collected for the 2023 Robert Half Salary Guide.
Credit controllers can command punchier pay in London, where the salary is 22% higher than the national midpoint. To reach the higher end of the pay scale, professionals will need extensive experience as a credit controller and a masterful grasp of all the relevant skills.
Future career opportunities for credit controllers
There are myriad career opportunities open to credit controllers. You can choose to advance to Credit Manager or a Transactional Manager.
Credit Managers are the next step up the career ladder — they oversee all credit controllers and are responsible for ensuring business solvency through healthy cash flow. Transactional Managers are senior-level professionals tasked with looking after a transactional team of Accounts Receivable and Payables as well as Credit Controllers. They’re usually found in larger businesses and are a crucial aide to the Finance Director.
You can also choose to become a freelance credit controller or branch out and create your own credit control agency.
“I enjoy being part of a team that really does make a difference to the bottom line of an organisation. I like the thrill of the chase and providing a high level of customer service — after the Sales Team, the Credit Control Team are generally the only other people to have contact with customers." Says Ros Green, European Credit & Risk Manager at Robert Half.
“It’s a buzz when that debt finally gets paid or a conclusion to a disputed account is achieved. It’s also satisfying to build those working relationships with both internal and external customers; all of these are part and parcel of being a credit controller.
“Using and developing negotiation skills is key to getting that invoice paid whilst retaining a professional relationship with the customer; parting with cash is not something they do lightly. A sale is not a sale until it is paid!”
Are you looking for a credit controller role? Browse vacancies now or upload your CV today and let our finance recruitment experts help you find your next role.
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