Avoiding Bad Debts at Year End
It’s that time of the year again where many businesses start to think about their financial year end.
One area that your Auditors are going to be particularly interested in is the number of overdue invoices on your ledger at the end of the year. They may well suggest that you make a provision for any invoices over 90 days in your accounts. What this means is that your profits would be reduced by that amount. If you have not run a debtors report for a while you may be surprised at just how much is still waiting to be paid. Depending on how much is overdue that could be quite a hefty sum coming off your bottom line!
With many companies aligning their year end with the calendar year, and with the holiday season to take into account, that means that there’s now less than six weeks to go till your customers do their final payment run of the year. So now is the time to be following up on your unpaid invoices. All your customers will need contacting with swift action to resolve any issues to ensure you make that payment run on the 21st December.
Your staff may not have the time to do this which is where our short term credit control project services come in. We have helped many companies clear up their debtor books of old, slow moving payments. So why not pass us your invoices over 60+ days to collect, so you can start next year with a fresh debtor book and post the best profits for this year?
It’s your money and profit after all!
