Unit 10 project, on Credit Control????
VickiM
Registered Posts: 2 New contributor 🐸
Hi everyone, I'm new to this forum, and just wondered if anyone out there could help me out. Basically i have decided to base my unit 10 project on credit control of a company that doesn't really have a set procedure. Its just that I'm struggling with a couple of aspects of the report.
For instance, Fraud? How would fraud tie into credit control?
Also the cost-benefit analysis. I cant think of a real cost to the company by simply introducing a simple system where they dedicate a few hours a week to chase the debts.....
I'm quite confused and stressing out as I'm due to leave work to go on maternity leave next week, and would really like to get a 1st draft done by then... Stressed :crying:
For instance, Fraud? How would fraud tie into credit control?
Also the cost-benefit analysis. I cant think of a real cost to the company by simply introducing a simple system where they dedicate a few hours a week to chase the debts.....
I'm quite confused and stressing out as I'm due to leave work to go on maternity leave next week, and would really like to get a 1st draft done by then... Stressed :crying:
0
Comments
-
Sorry I forgot to mention as well that my project is based primarily on the aspect of debt collection, how there is no set system in place, no time management invoived ie debys are just chased whenever, how there are no records of past conversations or past attempts to recover specific debts, in the case of staff absence there is no one to chase debts etc etc.......... So would fraud risks such as you know fake invoices etc be relevant? I'm trying to keep it all as much along the same topic as possible?
Still stressing!!
Thanks0 -
For the cost benefits, this could be along the line that the company would be getting more money in sooner, which would help with their cash flow and that people would be paying up, rather than getting away with not paying and potentially turning into a bad debt, or having to spend money in legal fees.
I can't think anything for fraud, just yet. Hopefully someone else will be able to think of something.0 -
I mentioned some potential ones in a thread from a few weeks ago;
http://forums.aat.org.uk/showthread.php?t=23123
Don't forget that overall credit control is made up of not just your sales but of your purchases too and you should monitor cash outflows as much as the inflows.0 -
I did mine regarding credit control - quite similar to yours actually lol, for fraud I just wrote about a page regarding fraud and related it to purchase ledger and payroll - theres not much you can say about fraud for credit control - so just write a page or two about fraud, making sure you cover all the fraud elements
Hope this helps0 -
The only thing I can think of is that if their is no one chasing up debts and recording steps taken to recover them then there is potentially a risk of fraud in that an individual could to arrange to have debt 'Vanish' and no one would be the wiser....the debt of an co conspirator perhaps?? Just because it dosn't happen you still have to think well 'what if' in respect of directors as well as staff no matter how unlikely... you just need to identify the posibilities for fraud and what steps you could take to prevent it... Hope that gives you a few ideas??
T0 -
How about a credit controller setting up a fake supplier account in which funds went to themselves, what safeguards could you put in to stop that happening?0
-
I thought of that one for my project so I am now feeling rather smug that BlueWednesday has mentioned it because shes tres clever!!0
-
sarahwilson wrote: »I thought of that one for my project so I am now feeling rather smug that BlueWednesday has mentioned it because shes tres clever!!
Or rather devious! Tres clever - I should be so lucky!!!0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 319 NEW! Qualifications 2022
- 157 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 92 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 274 Tax
- 136 Bookkeeping
- 7.2K General accounting discussion
- 201 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership