As the year draws to a close, businesses across every sector turn their attention to review, reflection, and planning. For many finance teams, the final quarter is the most intense period of the year, invoices pile up, cash flow tightens, and overdue accounts become increasingly visible. That’s why a strong credit control strategy isn’t just helpful at year-end, it’s essential. 

Year-end is more than a deadline; it’s an opportunity. A well-structured credit control checklist not only helps you close the year in a strong financial position but also sets up your business for healthier cash flow and smoother operations in the year ahead. Whether you’re part of a credit management team, a business owner, or a financial controller, this comprehensive guide will help you evaluate your processes, reduce risk, improve collections, and start the next year with confidence. 

Below is your detailed Year-End Credit Control Checklist, along with practical steps, insights, and best practices to ensure you finish 2025 strong and start 2026 even stronger. 

Review Your Aged Debtors Report Thoroughly

Your aged debtors report gives you a snapshot of outstanding invoices and how long they’ve been overdue. At year-end, this document becomes your most important diagnostic tool. 

Key steps: 

Identify long-overdue accounts. Anything over 60–90 days should be prioritised. These invoices pose the greatest risk and may require immediate escalation. 

Segment customers by risk level. High-risk customers may require credit limit adjustments or prepayment terms next year. 

Spot trends. Are late payments concentrated among certain industries, regions, or customer types? Use these insights to refine your credit policies. 

A close examination of aged debt empowers your credit control team to take decisive action before balances drift further into the new year.

Prioritise Your Oldest and Highest-Value Invoices

As year-end approaches, not all invoices are created equal. Prioritising overdue debt means focusing on: 

Largest balances 

Oldest debts 

Customers with repeated late-payment behaviour 

Chasing these invoices earlier increases your chances of successful recovery. Use firm but professional communication with clear reminders, phone calls, and where appropriate, final notices. 

If internal efforts aren’t producing results, consider partnering with a commercial debt recovery specialist before the year closes. A fresh third-party presence often prompts immediate payment. 

Reconcile Your Ledger and Ensure Data Accuracy 

Accurate financial data is the backbone of effective credit control. 

Checklist for reconciliation: 

Match all invoices to payments received. 

Confirm that credit notes, write-offs, and adjustments are correctly recorded. 

Ensure no duplicated invoices or misapplied payments remain in the system. 

Bring cash receipts and allocations fully up to date. 

Clean data not only supports better decision-making but also ensures the new year begins with an accurate financial baseline. 

Review and Update Customer Credit Limits

Year-end is the perfect moment to evaluate whether your current credit limits reflect customers’ financial behaviour. 

Factors to consider: 

Payment history (reliable vs. inconsistent) 

Order volume trends 

Recent credit checks 

Financial statements, if available 

Industry conditions 

If a customer has been routinely late, reducing their credit limit may be necessary to minimise future risk. On the other hand, reliable customers who consistently pay on time may warrant an increase to support stronger trading relationships. 

Proactive credit limit management strengthens your overall credit control strategy by aligning risk with trading activity. 

Refresh Your Credit Checks for Key Customers

Many businesses perform credit checks at the onboarding stage and then forget to revisit them. But a customer who was financially stable 12 months ago may not be today. 

At year-end, consider: 

Running new credit reports for high-volume customers 

Monitoring credit score changes 

Reviewing any adverse financial events (CCJs, insolvencies, filings) 

Identifying early warning signs 

Robust credit checks allow you to protect your cash flow before problems escalate – not after. 

Evaluate Your Invoicing Process 

Slow or inaccurate invoicing is one of the most common causes of late payment. At year-end, audit your invoicing workflow to ensure it supports, not hinders, your credit control goals. 

Questions to ask: 

Are invoices being sent promptly? 

Are invoice details accurate and easy to understand? 

Are purchase order numbers included correctly? 

Are payment instructions clear? 

If you identify bottlenecks, consider introducing automation tools or integrated accounting systems. The smoother the invoicing process, the faster the payments. 

Strengthen Communication With Customers

Good communication solves many payment issues before they occur. 

End-of-year communication tips: 

Send friendly reminders about outstanding balances. 

Notify customers of holiday office closures and invoice deadlines. 

Confirm holiday delivery schedules that may affect invoicing. 

Re-establish open dialogue with consistently late payers. 

Clear communication not only boosts collection success but also strengthens customer relationships. Transparent discussions about payment expectations help set the tone for the following year. 

Implement or Review Your Credit Control Policy 

Having a credit policy is key, and many businesses either do not have one or have one that is outdated. 

A strong credit control policy should include: 

Credit application and onboarding procedures 

Credit checking protocols 

Terms and conditions 

Credit limit rules 

Escalation procedures 

Collections workflow 

Late payment strategies 

Criteria for outsourcing debt recovery 

Review your policy annually to ensure it reflects your current operations, risk appetite, and customer behaviour. 

Streamline Your Payment Options

Flexible payment options can dramatically reduce late payments. At year-end, review the payment methods you offer and consider expanding them. 

Options may include: 

Direct debit 

Online payments 

Automated bank transfers 

Card payments 

Payment portals 

The easier it is for customers to pay, the quicker you collect. 

Adding or upgrading payment options is an investment that pays dividends in your overall credit control results. 

Evaluate Third-Party Support Options

Many businesses leave money on the table simply because they hesitate to escalate overdue invoices. 

Consider outsourcing when: 

Invoices exceed 60–90 days overdue 

Customers repeatedly fail to engage 

Large debts are at risk 

Internal efforts have been exhausted 

Professional commercial debt recovery can significantly strengthen your year-end financials while preserving customer relationships. 

Partnering with experts allows you to focus on your core business while improving your overall credit control performance. 

Review Your Terms and Conditions

Your terms and conditions (T&Cs) should: 

Clearly outline payment terms 

Include late payment interest clauses 

Specify dispute resolution processes 

Set expectations for credit limits and order approval 

Review these each year to remain compliant with legislation and aligned with your business needs. 

Updating your T&Cs is one of the simplest ways to reinforce stronger credit management practices. 

Prepare a Credit Control Action Plan for the New Year

Finally, once your year-end checklist is complete, create a proactive action plan for the coming year. 

Your plan may include: 

New risk assessment procedures 

Updated customer segmentation 

Automation and software upgrades 

Revised credit limits 

Monthly aged-debt reviews 

Staff training initiatives 

A structured escalation path for late payments 

A solid action plan ensures your business enters the new year prepared, organised, and equipped to manage credit risk effectively. 

Finish Strong, Start Stronger 

Year-end is the perfect time to tighten processes, clean up overdue accounts, and evaluate the effectiveness of your overall credit control strategy. By following this comprehensive checklist, you can enhance cash flow, reduce financial risk, and create a more resilient credit management system for the year ahead. 

Although a strong credit control isn’t a once-a-year exercise, there’s no better time than year-end to reflect, improve, and set your business on the path to an even stronger financial performance in the new year. 

If you want help recovering outstanding invoices or improving your credit control processes, Darcey Quigley & Co is here to support you every step of the way. 

Don’t let poor cash flow affect your year-end. Contact our team today to secure your outstanding payments and end the year on a strong note. 

For more news, tips and information on how professional debt recovery can support your business, follow Darcey Quigley & Co on LinkedIn!