Streamlining Credit Control for Accountancy Practices

Did you know that 62% of UK small businesses are owed money from unpaid invoices, with an average of £21,400 outstanding per business? For accountants, these numbers are more than statistics, they are a daily reality. Late payments disrupt cash flow, create unnecessary borrowing and make it harder for clients to plan ahead. For accountancy firms that work closely with growing businesses, the issue of unpaid invoices can mean the difference between sustainable progress and constant financial firefighting.

At My Credit Controllers, we work with accountants and their clients to take the stress out of getting paid. This article looks at practical ways accountancy practices can streamline credit control, improve client cash flow and free up valuable time for advisory work rather than chasing payments.

Understanding Credit Control

Understanding Credit Control (and how to improve it)

What is credit control?

Credit control is the method businesses use to manage how and when their customers pay. It combines processes, communication and monitoring to keep cash moving smoothly. For accountants, it is not just about balancing figures, it’s about safeguarding the client’s entire financial stability.

When invoices are paid on time, cash flow improves, borrowing decreases and confidence rises. When payments stall, everything slows down. A strong credit control system gives accountants the visibility they need to provide informed, forward-thinking advice.

It begins with clear payment terms, accurate invoicing and a consistent follow-up process. The aim is not endless chasing, but creating habits that make paying on time routine for clients’ customers.

The dual approach of proactive vs reactive credit control

The most successful systems blend proactive and reactive approaches. Proactive credit control happens before any problem arises, it includes credit checks, setting appropriate terms and maintaining open communication with customers. Reactive credit control starts once an invoice becomes overdue, involving polite reminders, structured payment plans or, where necessary, debt recovery.

Accountants who support both sides of the process can add significant value to their clients.

Why accountants should care about credit control

As an accountant, you already have your finger on the pulse of your clients’ financial health. But one of the biggest causes of sleepless nights for small business owners is unpredictable cash flow. Late payments can quickly eat into profit margins, forcing businesses to dip into overdrafts or delay investment.

Good credit control prevents this. When invoices are paid on time, businesses breathe easier. They can invest, hire, and plan with confidence. For accountants advising clients with turnover around £600,000 and upwards, this can make a significant difference, cleaner financials, less uncertainty, and fewer end-of-month surprises.

Strong credit control also benefits accountants directly. When your clients’ debtor books are accurate and current, your reporting becomes more reliable, forecasting improves and advisory work becomes easier and more strategic.

When to Consider Outsourcing Credit Control

For some clients, especially those growing quickly or operating in industries with long payment cycles, in-house credit control can become overwhelming. Chasing invoices can take time away from productive work, and it often requires a skill set different from accounting or customer service.

An outsourced partner can act as the client’s behind-the-scenes cash-flow muscle. The service may include issuing statements, sending polite but consistent reminders and managing payment plans where necessary. For clients with a turnover of £600,000 or more, outsourcing can bring much-needed stability and reduce pressure on small finance teams.

Consultancy and training services can also make a big impact. Helping clients install simple, sustainable credit-control processes reduces dependence on chasing and focuses on prevention instead. For accountants, recommending or collaborating with a credit-control partner allows you to demonstrate real, tangible value beyond compliance work.

Helping Accountants Strengthen Their Offering

Strong credit control is not just a financial safety net, it’s a value-adding tool. Accountants who help clients embed structured payment systems can demonstrate their role as genuine business advisers.

Cleaner debtor books lead to more accurate balance sheets, giving you better data to work from. Improved cash flow means your clients can focus on growth, and you can provide advice based on opportunity rather than crisis management.

Reducing the risk of late payments also strengthens your relationships with clients. By recommending practical tools, such as debtor-days calculators or late-payment interest trackers, you help them take control while showing that you understand their business pressures.

Ultimately, the time saved on chasing money can be redirected towards higher-value activities, from management reporting to business planning. This enhanced service offering helps your practice stand out in a competitive market.

Credit Control Tips

How to Improve Your Business’s Credit Control Procedures

Credit control works best when it’s part of a simple, repeatable routine. These tips help accountants guide clients to keep payments on track.

Credit Control Tips: Before the Sale

Encourage clients to set up a written credit-control procedure that everyone in the business understands. It should outline who sends invoices, who monitors them and when follow-ups occur.

Before offering credit, check the customer’s financial history and payment behaviour. It’s far easier to avoid late payments than to fix them later. Clients should also identify any high-risk customers and track them separately. Having a “stop list” of persistently slow payers prevents future problems.

Credit Control Tips: After the Sale

Invoices should go out immediately after a product or service is delivered, with every detail correct. Accuracy and speed go hand in hand with getting paid promptly. A friendly confirmation call or email to check the invoice has been received can prevent misunderstandings later.

Encourage clients to make payment simple. The easier it is to pay, the quicker customers will do it. Online payments, direct debit and card options reduce friction. Some clients find that offering small early-payment incentives can also help improve cash flow.

Communication style matters too. A polite but professional tone in every interaction keeps relationships strong while maintaining authority.

Credit Control Tips: Beyond Terms

Regular reviews of the sales ledger give accountants and clients a clear picture of who owes what and for how long. Monitoring debtor days and spotting patterns early helps avoid large backlogs.

Cash-flow forecasts should be updated regularly to reflect real-world payment behaviour. When invoices do go overdue, action should be quick but measured. A reminder within a few days of the due date keeps momentum.

If customers still fail to respond, a professional  partner can step in to manage the process fairly and effectively. Charging statutory interest on overdue payments can also help to encourage punctuality and maintain business discipline.

Credit Control Tips: Ongoing

Credit control is an ongoing process, not a one-off fix. Accountants should help clients track their progress using key measures such as average collection time, percentage of overdue invoices and total debtor value. These figures show where processes can be tightened.

Protecting against late payments might also mean using credit insurance or introducing stricter terms for customers with poor payment histories.

As businesses grow, it often makes sense to outsource part or all of the process to experts who can dedicate time to it. This keeps cash-flow management consistent and lets internal teams focus on their strengths.

Many accountants we work with, including Prosper Accountancy, have seen that small, consistent changes, like sending invoices earlier or following up mid-term, can transform their clients’ liquidity and confidence.

Credit Control for Accountants – Supporting You and Your Clients

Is Your Client’s Cash Flow Struggling Because of Late Payment?

Late payments remain one of the biggest barriers to business growth in the UK. When clients spend more time chasing money than serving customers, productivity and morale both suffer.

A good credit-control partner supports both accountants and clients by managing the process professionally and consistently. With that support in place, businesses get paid faster, accountants spend less time on cash-flow emergencies, and clients can refocus on strategic goals.

Practical Support That Delivers Results

An external team can act as an extension of your client’s finance department, managing reminders, payment plans and overdue invoices. This approach leads to a cleaner debtor book, more accurate forecasts and far fewer distractions.

Combining financial reporting with outsourced credit control also gives a fuller picture of how the business is performing. It helps accountants demonstrate the direct link between strong processes and reliable financial outcomes.

Our Results Speak for Themselves

• More than £540 million collected for clients
  
  
• Thousands of businesses supported across the UK
  
  
• Consistently high recovery success rates
  
  

These figures show the impact professional credit control can have on business health and financial confidence.

A Straightforward Partnership

With over twelve years’ experience, My Credit Controllers understands the needs of accountants and their clients. The service fits easily into existing workflows and can be tailored to suit short-term clean-ups or long-term ongoing support.

Our approach is built on clear communication, respect and reliability, helping accountants offer clients the confidence that their cash flow is in safe hands.

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Why Credit Control Matters for Accountants

In conclusion, accountants play a key role in helping clients stay financially secure. Strong credit control underpins accurate reporting, better forecasting and more resilient businesses. By encouraging organised invoicing, timely reminders and structured follow-up, accountants can transform how their clients manage money.

For those ready to go a step further, partnering with a professional team like My Credit Controllers gives you the tools, experience and support to keep clients’ cash flow running smoothly.

And for firms like Prosper Accountancy, where client relationships are built on trust and transparency, it creates a complete financial service that helps businesses not only survive but thrive. Together, we can help more clients get paid on time and focus on what matters most, sustainable growth and peace of mind.