The importance of a credit management system?

 In Small business hacks

Even your most loyal customers can fall behind on their payments.

You can maximize your business’s potential profit, limit risk, and preserve cash flow by controlling your Udhaar and payment procedures as you track your sales.

Sales with solid credit management aren’t actual sales until they’ve been paid. You can sign the monthly contract in the sales column, but it will only be a paper commitment until you receive the money. Credit and collection management are critical to a company’s success.

Customers can be lost and your reputation can be ruined due to misunderstandings. Effective lending or khata and repayment necessitates automated management decisions and the ability to administer credit policies consistently.

Record keeping for business made easyWhat is a Khata or Udhaar (accounting) Book