Accounting Tips For You

Business Credit Control

Establish Procedures

When a company establishes a procedure it not only improves efficiency by reducing workload but also reduces the chance of mistakes occurring. With effective procedures and policies in place for controlling customer credit the terms can be fixed and processes completed based on exact time frames. This can also help if a customer ever complains about work carried out and wishes to query the charges invoiced. With a clearly defined credit control procedure the client can be handled fairly and effectively by all levels of the company.

Follow Up Promptly

When a customer fails to make payment this should be followed up immediately to ensure firm but fair pressure is continually applied. If no follow up occurs it is easy for the customer to assume the debt is forgotten or slipped through the cracks. The longer an invoice goes unpaid the harder it will be to attain it in future.

Use Email, Fax and Phone

Posting invoices is still a good way of ensuring reliable and accurate delivery but on the majority of occasions it is perfectly adequate and shrewd to email or fax invoices as this will not only save on costs but can also be seen as part of a company’s ‘greener’ policy.

Not Too Heavy

Although a customer may be avoiding payment it is always better to provide at least two gentle reminders before threatening legal action or other similarly heavy measures. The customer could well become a well paying and long term partner to your business.

Speak to People

It’s always more effective to speak to actual people rather than leaving messages on answer phones.

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