Small and Medium Sizes Enterprises (SME’s) Struggling With Internal Credit Control
Many small businesses find it hard to maintain good internal credit control and as a result the majority of customers do not intentionally make late payments.
The lack of a substantive process to collect the debt that is the main problem and the longer invoices are not chased for payment, the harder it becomes for the debt to get paid and eventually the debt may become unrecoverable.
A great way to solve this problem is to use computerised accounting software like Free Agent or Digita Software by Thomson Reuters.
Many businesses are becoming more aware of bad debt issuesand are migrating from using spreadsheets for accounting purposes to reliable Computerised Accounting Software (CAS).
If you’re one of these businesses, make sure to first scope the market for CAS’s that are compatible with your business’s needs, size and suits the company’s budget.
Debt chasing becomes less of a hassle after programming the CAS to send reminder letters for overdue invoices thus freeing up your time for servicing clients and meeting new clients.
My previous article on LinkedIn gives 5 brief tips on how to avoid insolvency in your business and mentions Debt Chasing.