Reporting – Why is it important to have basic records in place

New Business.  Getting out there, getting the new clients.  Manufacturing or porcelain dolls, widgets, designing a complete makeover of our one of our Customers portfolio’s.  Repeating the process, over and over again.

Are you up to date with your debtor data?

Are you up to date with your debtor data?

Yes, all these Invoices they are now sent out automatically, its so cool.  Who handles my Invoices?  My Accountant does, or I have an Accounts Payable or Receivable Clerk who looks into all of that.

Today, there are so many CRM systems to choose from that record and keep up to date all of our Customer data.  Imperative that these are kept up to date, but what about keeping up to date records on Customers who pay you.  The accountant deals with that.

But what about when you to start to grow, and you need to understand your numbers and figures and your big debtors that are either on 30/60/90….days past due.  Do you go with the flow, and let your business grow in its own way, or to avoid your finances spiralling out of control, do you make a marked effort in dealing with the nitty gritty right here right now.  Something to think about perhaps, but what exactly, and what kind of information would be of benefit to say either the auditors, or creditors in the future should the going get tough.

The basic credentials that any business that is owed money should possess are set out as follows:

  • Customer Number – To identify as your business grows
  • Customer Name
  • Trading Address – or billing address (you decide)
  • Telephone Number
  • Credit Limited granted to them/assigned and the type of terms that they are paying on.
  • Date on which credit limit was last reviewed
  • Salesperson assigned to the account.

There are other variables that you could take into consideration here, such as putting in a bucket list to scrutinise payment behaviour as to how late certain Customers are likely to pay you.

It is imperative for all fields to be accurate and up to date for you, as any mistake can lead to disastrous consequences at a later stage.  A key example of this is if your Customer has a Registered address which is at an Acccountant or anywhere else, and this is way different to their actual billing address, when your Accounts Payable clerk makes that crucial phone call to see when its going to be on the next payment run, will be advised that they have not received the Invoice and to re-send it out again.

How about you, do you have an idea or need the time to put together a spreadsheet of invoices outstanding and due to you but need further help, then please do not hesitate to contact the Writer of this Article.

opinion

Share and help someone become more profitable
RonM
 

Click Here to Leave a Comment Below 0 comments