Credit Management is one of the most critical stages of your Order-to-Cash cycle. Launched in 1985 by Microsoft, Excel spreadsheets have undoubtedly been very popular and proved successful in managing credit operations for a long time. But do you really think that Excel is sufficient to deal with the increasing complexity of your accounts receivable process?
Statistically, Excel can only manage one million line items of data in a single sheet, which is definitely not enough to manage the volume of receivables any large organization deals with. This is only one of the limitations which creates an imperative for us to look at more purpose-built solutions for effective credit management. Let us take a look at the five ways in which such solutions hold an upper hand over Excel spreadsheets and could make your overall credit management process simpler and highly effective.
Effective credit management is a must for any company. While Excel spreadsheets have been providing satisfactory results in this regard (at least for small-scale companies), the industry is increasingly looking at purpose-built solutions that address pain-points specific to credit management. At the end of the day, as a credit manager, your goal is to protect and control the company’s credit risk exposure – and not spend time experimenting with fancy spreadsheet macros and tricks.
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