Amplifying the Voices of Credit Managers: Insights & Strategies

Due to significant economic disruptions and a rapidly changing financial landscape, credit managers' roles are becoming increasingly vital to their organizations' financial health.

The recent episode of Extra Credit, a weekly podcast from the National Association of Credit Management (NACM), delved into the critical importance of credit managers having their voices heard within their organizations.

Brian Morgan—Senior Director of Strategy for Invoice-to-Cash at BlackLine—shared valuable insights from his years of experience in future-ready financial operations. Listen to the full podcast here, then let’s take a look at some highlights from this discussion and pull some key takeaways.  

Credit managers have long been perceived as back-office personnel, often stigmatized as "sales prevention." This outdated perception undervalues their crucial contributions to organizations.

As Brian highlighted, credit managers oversee one of the largest assets on the balance sheet—debtors. Efficiently converting debtors into cash is essential for maintaining businesses' financial stability.

Credit managers manage credit limits, customer relationships, and credit lines, often interacting with customers more frequently than other departments. Recognizing and articulating this strategic value is essential for elevating their status within the company.

One effective way for credit managers to amplify their voices is through participation in industry surveys, such as the NACM and BlackLine annual State of AR Automation survey.

Surveys provide a valuable benchmarking tool, enabling credit professionals to compare their practices with industry standards and identify trends. This benchmarking goes beyond just measuring DSO (Days Sales Outstanding); it helps credit managers understand industry shifts and adopt best practices from their peers. By staying informed, credit managers can implement strategic improvements and avoid being left behind in a rapidly evolving field.

The data collected from these surveys can significantly influence company policies and practices. Historical shifts, such as the increased acceptance of personal guarantees, demonstrate how survey insights can lead to strategic policy changes.

Today, rapid advancements necessitate that credit managers continuously learn and adapt. Survey results can provide actionable insights, helping credit managers stay ahead of the curve and implement effective organizational changes.

Keeping abreast of the latest trends and technologies in AR automation is crucial for credit managers. Morgan noted that the focus has shifted from merely saving costs to improving overall business outcomes.

Automation enhances the speed of converting debtors to cash, improves customer experiences, and frees employees from mundane tasks, allowing them to focus on more strategic activities. By leveraging automation, credit managers can better utilize their teams’ expertise, driving improved business performance.

Advocating for the adoption of AR automation involves demonstrating its value in terms of risk management, working capital improvement, and customer experience enhancement. When building a case for automation, credit managers should focus on the tangible benefits that matter to CFOs, such as improved cash flow and working capital. Moreover, automation plays a critical role in retaining staff by providing more fulfilling roles, which is essential in today’s competitive job market.

According to Morgan, “Because we mentioned people being busy, more and more organizations want to do more with less … or do more with at least the same.

Automation is an enabler—it's not to replace. It's to enable organizations to improve business outcomes. From my perspective, it's so we use our people's skills and expertise. It's not to replace them; it's to allow them to get rid of the mundane, repetitive processes and tasks and really use their skills and expertise.”

Engaging with the broader credit community through surveys and other forums offers significant benefits. Learning from other organizations, even those in different industries, can provide valuable insights into process efficiencies and technological applications.

By participating in community-driven initiatives, credit managers can gain new perspectives and apply innovative practices to their own organizations, enhancing their strategic impact.

By amplifying their voices, staying informed through industry surveys, and advocating for AR automation, credit managers can significantly enhance their strategic value within their organizations. As the economic landscape continues to evolve, the role of credit managers will remain pivotal in driving financial resilience and success.

Engage with the broader credit community, participate in surveys, and advocate for adopting innovative technologies to amplify your impact and ensure your voice is heard.

The state of AR automation survey is now open on the NACM website, providing a valuable opportunity for credit managers to contribute to and learn from industry-wide insights.

Interested in the results from last year? Don’t worry, we’ve got you covered. Download the whitepaper here.