Credit Controller job interview

geek84

Hi Folks

I shall be going for a credit control vacancy (another name for a debt collector) interview in the next few days. Although I have been to a fair few similar interviews before, can someone be kind enough to tell me what type of questions can be asked at the interview?

I particularly want to know what is meant debtor days & average debtor days. Also, what can I say when asked about the total values of the ledgers that I have been responsible in the past. I do know individual accounts and how much they owed in a particular month etc

Finally, do you think I should look up the prospective employer's company on the Companies House website to get some facts and figures for the interview?

Thanks in advance for your response.

shikoku

You will be harassing the vulnerable, sometimes to the point of suicide, all you need to display at this interview is a complete lack of morality and the job will be yours.

JCS1

Is it a credit control or a debt collector job? I view credit control as chasing in payments with regular clients and building up a good relationship with their purchase ledger. Debt collection is totally different.

Debtor days is the number of days it takes for payment to be made relating to the invoice date. Also known as DSO (Days Sales Outstanding).

geek84

Hi

Just to clarify, it is a credit controller position.

Can someone please tell me how do I work out average debtor days?

Are there any other calculations that a credit controller needs to do as part of the day to day tasks?

Thanks in advance for your response.

JCS1

calculation for average debtor days is:

value of trade debtors at end of financial year divided by total sales for the year and then multiply by 365.

Similar calculation can also be done for month, quarters, etc. I would get a copy of their accounts from Companies House, it will cost a £1, and then see what their DSO's at year end were like.

Also useful is to know the percentages of aged debt. So if payment terms are 30 days from invoice date, how much is current, how much is 30-60 days overdue, how much 61-90 days over, 91 + days (and more importantly, how you will deal with getting payment for the older items).

There is a balancing act in credit control, between building up good relationships with clients purchase ledger departments and being on good terms, but also ensuring that they still don't use every excuse not to pay

1984ReturnsForReal_2

shikoku wrote: »

You will be harassing the vulnerable, sometimes to the point of suicide, all you need to display at this interview is a complete lack of morality and the job will be yours.

At what point did you make up your mind whether it was dealing with the public or business?

geek84

Hi JCS1

Many tHanks for your reply.

So, I presume to calculate the debtor days for a month you divide by 30, and for a quarter you dIvide by 91 etc. Can you tell me what DSO stands for?

Also, i weNt into Companies House website. I got a bit lost, so will be you be kind enough to tell me how I get the company accounts?

Thanks in advance

JCS1

DSO is Days Sales Oustanding, same thing, just the 'in' term that is used.

Companies House web check page is here:

http://wck2.companieshouse.gov.uk/e1f844a96f5c1d0bfef4cbd78da8f02f/wcframe?name=accessCompanyInfo

geek84

Hi JCS1

Many thanks indeed for all your help today.

All the best

geek84

Hi Folks

Can you please advice what questions I could ask the interviewer at the end of the interview.

Many Thanks

jackomdj

if you haven't already got their accounts off it is worth looking at their website as co's ofthen publish so saves you the fee.

I would ask what relationships already exist with their major accounts. How many days beyond terms they start chasing the debts. What sort of processes they have in place for identifying/monitoring overdue invoices. How many people are in the team you will be working in. Show an interest in the systems that they use.

I would have done some background work to find out some details about the company which you should use either when answering their questions or bring it into one of yours.......great example may be "I saw from looking at your accounts that your debtors increased/decreased year on year by x%, how much of this relates to trade debtors?" Think of some other relevant questions applicable to the company or industry sector.

HTH