ICT in Finance :: ICT Essays

Credit Control==============Credit support is a database and it tells the company when paymentsneed to be made. By implementing a credit control procedure manualBoots argon enforcing the companys individual characteristics. They areshowing they boast management and company values that will inform theircustomers that they have presence, confidence, diligence, and thatthey are prepared. Companies that have these values are less likely tosuffer from late payment or bad debt ( ancient debts). Controlling theircompanys credit, when they no longer control their debtors the costof financial support their companys cash flow is at the mercy of those verysame debtors. Boots need this because it tells them when their debtsneed to be made so they use get into deeper debts. If they didnt usethis manner the company could go bankrupt in a few months.ForecastingBoots need to use forecasting when they seeing what products will beneeded in the season because they will not buy furry body warmers f orbabies in the summer, these will be used in winter time this will pullsure that boots do not lose any customers to other rivalsSupplier PaymentsSupplier payments are payments that need to be salaried to the companythey bought their stock of. So if Boots needed to pay supplierpayments this would mean that whatever supplier Boots bought theirfood and drink of these are payments that are to be made to thesupplier. Boots gets sent an aged creditors report, this tells themthe aged debts, will show the Finance Department who the company owesmoney to. This helps boots because they wont get behind with payingmoney they own to different people, so they wont get into deeper debtand thats why Boots postulate this type of method.BACS (bankers automated clearing system)BACS means that you can now pay the creditors directly into their own bank accounts. Increasingly suppliers are receiving payment directly into their Bank Account via BACS, the automated clearing system. This means that clear ed funds are available on the day you are paid - unlike the time delay associated with cheques, there is no possibility of cheques getting lost or delayed in the post, you are saved the time and nark of paying cheques into your bank account, accounting procedures are simplified and administrative costs reduced. Boots would use this when they owe money to the suppliers because they have bought their food from them like the sweets the drink they sell. Boots needs this because when they pay the creditors by cheques they can get lost so the creditors will think that they havent paid causing the company to go into debt with the creditors.