I Just Don’t Have Time – Michael Dennis, CBF

Don't Have Time
Don’t Have Time

At a recent industry credit group meeting, the morning guest speaker talked about the need for periodic financial statement updates from customers. One of his strongest recommendations involved updating statements no less frequently than once a year…an idea I agree with completely.

Over lunch, several of the credit managers at my table basically scoffed at the idea of annual updates. One common concern or complaint involved not enough time or resources. One especially vocal credit manager said: “If I actually had to update financial statements once a year, it would take nothing less than 40% of my time.”

In my opinion, annual customer financial statement analysis is a critical success factor for any credit department. I am not convinced that credit managers can effectively manage credit risk without period financial updates and analysis… even if

Michael Dennis, MBA, CBF, LCM
Michael Dennis, MBA, CBF, LCM

doing so does take 40% of the manager’s time. Of course, this work is routine and can and probably should be delegated to an employee of the credit and collection team as quickly as possible.

Michael Dennis’ Covering Credit Commentary. Michael’s website is  www.coveringcredit.com

The opinions presented are those of the author.  The opinions and recommendations do not necessarily reflect the views of CMA, or their Officers and Directors.  Readers are encouraged to evaluate any suggestions or recommendations made, and accept and adopt only those concepts that make sense to them.

What are your thoughts?