This is a weakness because it is clearly indicated that the process hasn't been reviewed recently and likely not implemented to give transparency to the credit control staff.

Furthermore, in those five years there may have been newer methods that are more effective but not utilised as it is not included in the procedure so is likely missed.

Cash flow issues will be a result of a poor procedure in credit control which is a liquidity issue for PVS so therefore is very important that this is treated seriously.

Set timelines for chasing should also be discussed such as an agreed schedule for when reminders and legal action should take place and agreed by all to make it clear for the credit control team to follow, no clear direction will make the job more difficult for staff and will likely result in errors.

Ad hoc reviews are not the most effective especially if the credit control manager is absent and there is an issue, this could be mitigated by introducing another party of the finance function into this procedure so there is cover if the above was to take place.

Introducing other departments into this new procedure will also help keep the balance of getting paid on time but also preserving customer relationships, ie the Business Development Director would be a good starting point.

Not having a formal timetable for invoicing will again cause cash flow problem or even lost in finance because PVS is likely not receive from clients in time or not receive any payment at all.

All the fundamentals procedures such as chasing unpaid amounts, sending reminders to clients are being done in a irregular basis which is a high for the company to lack funds and perhaps go bankrupt.

This will be an ethical issue for PVS to start with as all departments are able to see this information which is confidential.

Furthermore, decisions could be made in other department that are swayed by this information which will likely result in poor customer service which will have a negative impact on the reputation of PVS.

Customers will likely not appreciate their financial position being discussed across all departments.

Only staff in the credit control department should have access to financial information to perform their duties effectively.

Furthermore, more security controls should be implemented such as date encryption, stronger passwords and strong antivirus software to avoid the risk of hacking and leaking of customer data.

Regular reviews of the notes added to customer accounts should also be reviewed to ensure there is professionalism on the software.

High turnover of staff is not always a good representation of a company and will likely defer new applicants from joining making recruitment more difficult.

The inputting of information incorrectly on documents such as invoicing is also as a poor representation of PVS as it shows incompetence in their finance function, reducing confidence from clients.

Permanent staff are likely unhappy with dealing with customer complaints continuously as this will demotivate them with their other duties, therefore increasing the risk of staff seeking alternative employment which will result in a recruitment drive which is costly.

PVS could think of having a traffic light system into place for any late payments. For instance red if clients do not pay after one month of receiving their services etc or amber for clients being late with their payments for 2 weeks etc...

A regular meeting to go through the collection procedure, review and update when necessary.

Furthermore, implementing good training for staff will reduce the risk of mistakes happening with the invoicing for example and therefore representing PVS in a positive light.

Permanent staff will get more job satisfaction as they will have the correct support from their peers and will likely want to stay within their roles if they are happy of the back of this control.

An example is that if a staff leaves PVS there is a risk that clients sensitives information could be stole and perhaps being exposed to a rival.

Payment plans are a sensitive subject and need to be handled correctly in order to reduce the risk of affecting cash flows.

Also, customers will likely not appreciated being told separate things from staff at PVS and will raise complaints, damaging PVS reputation and creating costs and losing revenue.

For instance only senior vets could have access that software, PVS could also think of protecting any data with password which again will be accessible to limited staff.

Having a more solid way of protecting clients data will allow PVS to create a trusteed clients portfolio who can rely on them protecting their sensible information.

If services are being provided without payment then PVS runs the risk of running out of cash and becoming insolvent which is a major concern for the business.

Affordability checks must be carried out and reviews of financial information to ensure no changes have occurred prior to offering more credit so PVS do not have a cash flow issue.

Although a difficult control to mitigate and a slight risk of customer dissatisfaction the risks outweigh if not followed.

If temporary staff are needed, PVS should not delegate tasks such as setting up new clients, instead having those temporary to support to permanent staff with more admin tasks. Setting up new clients should be only done by experienced permanent staff.