September 2001

Achieve a Sound Credit Policy Through the Affinity Partnership of the NYSSCPA and the National Credit Group

In today’s fluctuating economy, cash flow management is critical. Unfortunately, many small- and mid-size companies lack the one tool necessary to accomplish proper management: solid credit policy. Though there will always be excuses, including lack of time to check references; lack of manpower to monitor credit, and a lack of resources to hire a credit manager or acquire the tools needed to implement a policy, the reality is that a good credit policy saves both time and money. A good credit policy can, in fact, save the company.

So what does it take for member firms of the New York State Society of CPAs to get control over their credit policies? First, they should get to know as much as they can about their customers. Second, they should establish and adhere to credit limits. Third, they should carefully monitor their accounts receivables.

Gathering information about clients used to be a tedious and error-filled process. Today, the Internet makes it possible for companies of any size to quickly access information, but that doesn’t mean the gathering process is easier to accomplish. It is still necessary to know where to look for information and how to research the data once it’s found. For NYSSCPA members, that’s where the National Credit Group (NCG), an online credit services company, is so beneficial.

Established in 1997, NCG quickly recognized the potential of the web to help small- and mid-size businesses access credit information. The company then went about developing tools that can guide member firms through all three steps of implementing a good credit policy. To provide access to real-time credit information, NCG has direct links into the databases of the world’s largest credit bureaus: Dun & Bradstreet and Experian.

D & B and Experian credit reports can be purchased online in any format NYSSCPA members prefer to make smart, on-the-spot credit decisions. NCG also provides members and their clients with the tools necessary to manage overdue accounts online. NCG educational materials and workshops guide credit managers through a step-by-step process of establishing a credit policy and setting credit limits.

Through its database, NCG can also monitor a member firm’s entire portfolio of accounts receivable through D & B and Experian to flag any changes in paying habits. Some times the most cost-effective way to control credit management is to outsource the entire process. NCG can provide full accounts-receivable management services. Members can instantly access their clients’ information via NCG online credit services.

NCG provides helpful credit services at reasonable costs. A sound credit policy is immeasurable to the well-being of a firm. With a reliable policy in place, firms can focus on their core business, improving cash flow and minimizing bad debts. Available 24 hours a day, seven days a week, NCG’s services ensure timely, smart credit decisions by firms that have access to their clients’ credit reports whenever they need them.

For more information about the National Credit Group visit www.nysscpa.org or contact Ed Parker, NYSSCPA member services manager, at (212) 719-8313, (800) 633-6320, or eparker@nysscpa.org.