A credit-control workflow for recruitment agencies

Credit control starts before an invoice becomes overdue. The agency needs the correct billing entity, purchase-order requirements, recipient and evidence of approval while the assignment is being set up. Recovering those details after the payment date creates avoidable uncertainty.

A workable process links the consultant's client knowledge with the finance team's ledger. Give each account a collection owner and identify the commercial contact who can resolve questions about the work itself.

Confirm the invoice route at setup#

Ask how the client receives invoices, what references it requires and who approves them. Record the agreed payment terms from the actual contract. Check whether a portal upload, an email or another submission step is required and how acceptance can be verified.

Keep the billing contact separate from the hiring manager where they are different people. Update the record when a contact leaves or a client's process changes. A working relationship with one consultant does not ensure that the accounts-payable team has received the invoice.

Run a clear collection sequence#

1. Check that the invoice was issued to the correct entity with the required evidence.
2. Confirm receipt and investigate rejected submissions promptly.
3. Review approaching due dates and unresolved approval requirements.
4. Follow up unpaid amounts using the agreed terms and current account history.
5. Record a specific payment promise, or classify the reason no date is available.
6. Escalate disputes to the commercial owner with the evidence needed for a decision.
7. Match receipts and close or update the collection record.

Use a contact log that another colleague can continue. “Chased” is not enough: record who responded, what they said, which invoices were discussed and the next action date.

Example: a payment promise moves#

In this illustrative case, a client promises payment on Thursday but no matching receipt appears. The collection owner checks the bank and remittance records before contacting the client again. If the client supplies a revised date, record the reason and update the cash forecast as well as the chasing diary.

Do not keep the original date in the forecast because it produces a more comfortable balance. Equally, do not mark an invoice unpaid merely because an unallocated receipt has not yet been matched. The ledger and collection notes should describe the same position.

Keep disputes in a separate queue#

A query about hours, rates or purchase-order information needs evidence and a decision owner. Repeated payment reminders cannot resolve a missing approval. Maintain the collection status while routing the underlying issue to the person who can act on it.

Where a funder or external team handles collections, agree who contacts the client and how updates reach the agency. Check the particular agreement before making commitments that affect a financed invoice. Formal debt recovery, interest claims or legal action require a separate, appropriately advised decision.

Review the process each week#

Review overdue amounts, promised receipts, unresolved disputes and unidentified payments. Give each exception a next action and check whether recurring problems begin at assignment setup or invoice creation. Use those findings to improve the upstream process, not just increase reminder frequency.

The back-office outsourcing guide helps define the wider service boundary. Bring a redacted aged ledger and a sample collection history to our back-office service to discuss ownership, reporting and the practical workflow.