Credit Control and Credit Management
Cash is already king, but with the rapidly changing landscape that we operate in, cash will become even more important. The Financial Times (London) recently reported that the length of time UK businesses are waiting to settle their bills, has increased by almost a week and a half since the start of the credit crunch (according to figures released by Experian). The average amount of time bills were paid after the agreed date, known as days beyond terms (DBT), was 25.97 days at the end of Q4 2011.
What does this mean for the business owner? There is less money being paid, so keep an eye on your debtors and chase your debts hard. However, this is often an area which is avoided by many business owners, which can have devastating consequences.
This is one area of business that should not be left to chance and ASP Accounting will make sure that it's not, by:.
- Updating and reconciling your sales ledger and control account
- Reviewing your credit terms
- Producing an aged debtors report, to give an insight into monies which are overdue
- Sending out letters to outstanding debtors
- Chasing payments and posting payments
- Providing recommendations to clients when legal enforcement is necessary
- Providing up-to-date details on the situation