Credit Account Management is important for every business mostly the one that makes most of its sells on credit. Each business should understand that it is necessary to give credit to customers and the same time, it might be risky because it can affect the going concern of the business. For instance giving of credits attracts more customers to your business and increases you sales. But at the same time if the sales on credit increases, the business may suffer from bad debts which might collapse the business. In order to avoid all that, there must be Credit Account Management to regulate the amount of credit given to customers. Business Training in Kenya has more articles.
What is Credit Account Management?
Credit Account Management can be defined as monitoring and controlling of the amount of debts given to the business debtors or customers in order to avoid high debt ratio. Credit Account Management is an effective way of preventing high debts. In order to have an effective Credit Account Management, a business must have some requirements such as the organization experience in doing business, which will enable it to understand and know different customers for the purpose of readiness and promptness to pay debts as agreed. Secondly, the business must have IT infrastructure that will assist in the collection of debts. Thirdly, the business requires experienced officers in Credit Account Management. Lastly, the business must be committed to control its credit at all cost as long as the process will be beneficial.
Factors that influence Credit Account Management
Credit Account Management is done if there are some controls put in on the amount of debtors. Things put either to allow more debtors or to minimize the number of debtors are the one what we will say is Credit Account Management. The factors put to influence amount of debtors include;
- Level of sales of a business such that the bigger the business, the higher the sales therefore the level of debtors is expected to be higher.
- Credit policy. Credit policy is the measure that has been put to affect or control the amount of credit given by the business. the credit policies are;
- The quantity of trade accounts to be given by the business
- The period given to the debtor to repay the credit
- Discount given to encourage prompt payment of debt
A business credit policy determines the level or risks the business is willing to take over from the debtors. The control over the debtors may be lenient or liberal credit policy. Therefore it depends with which policy the business want to take for the its Credit Account Management.
- Terms of trade are also put to help with the Credit Account Management of the firm. There are two types of terms of sales a firm may have. That is the credit sales or the cash sales both of which may be used either to increase debtors of increase debtors.
Benefits of Credit Account Management to the organization
The Master of Science in Management Information Systems (MIS) package is available to scholars who have accomplished an undergraduate degree in business or a closely related field.
Scholars without a business background may apply to the program but will are required to take a two-course sequence: MGG 501 and 502, introduction to Business I and II. These courses are usually taken concurrently with the MIS curriculum requiring an 18- or 19-credit-hour program each semester. This added requirement seeks to ensure that all alumnae have an understanding of the functional areas of business in which they will be applying their new MIS skills.
Continue Reading [+]
Continue Reading [+]
A Change Management Strategy is a document that outlines the things that the management needs to put in place as part of its change strategy. A Change Management Strategy defines the approach that is needed to manage the change in a given situation given the nature of the project. Business Training in Kenya has more articles.
Elements of Change Management Strategy
One element of Change Management Strategy is Situation awareness. This element requires that the given change to be implemented be well understood and the persons whom it will impact to be also understood and considered accordingly
The second element of Change Management Strategy is Supporting structure. This element deals with the composition of the team and the sponsor elements of the given project
The third element of Change Management Strategy is Strategy analysis. Strategy analysis includes such elements as ensuring that one has adequate means of dealing with risks. The organization should put up special ways of dealing with any risks that might come up.
Importance of Change Management Strategy
Marketing ethics can be defined from the simple definition of the term ethics which has been termed as the study and philosophy of human conduct, with an emphasis on the determination of right and wrong or simply set of moral principles or values that guide behavior. Therefore, from a normative perspective approach marketing ethics is defined as practices that emphasize transparent, trustworthy, and responsible personal and organizational marketing policies and actions that exhibit integrity as well as fairness to consumers and other stakeholders. Marketing ethics in the workplace may refer to rules, standards or principles governing the conduct of organizational members and the consequences of marketing decisions. Business Training in Kenya has more articles.
Marketing ethics focuses on principles and standards that define acceptable marketing conduct, as determined by various stakeholders and the organization responsible for marketing activities. While many of the basic principles have been codified as laws and regulations to require marketers to conform to society’s expectations of conduct, marketing ethics goes beyond legal and regulatory issues. Ethical marketing practices and principles are core building blocks in establishing trust, which help build long-term marketing relationships. In addition, the boundary-spanning nature of marketing in terms of sales, advertising, and distribution presents many of the ethical issues faced in business today and marketing ethics.
Continue Reading [+]
Continue Reading [+]