ClearCFO learning guide · Updated 27 September 2026 · Educational information
Measure several exposures
Review revenue, gross profit, receivables and overdue balances by customer and related customer group. Keep the measurement period and group definitions consistent. There is no single universal percentage that determines safety.
Add commercial context
Consider renewal dates, contract termination rights, switching costs, disputes, credit terms and the cost of serving the relationship. A long relationship is relevant evidence, not a guarantee of future orders.
Stress the financial impact
Ask what happens if the largest customer pays late, reduces volume or leaves. Translate the scenario into contribution, committed costs, collections and near-term cash—not just lost revenue.
Act where evidence points
Set an owner for collection issues, refresh contract visibility and develop proportionate diversification or contingency plans. Use the analysis to support a management decision, not to make an unsupported judgment about a customer’s creditworthiness.
Further reading: ACCA: profitability and cost analysis.
Examples are illustrative and simplified. Apply definitions and assumptions appropriate to your business; obtain professional review for material decisions. Read the financial disclaimer.