Businesses go under, not only because they lose clients, contracts but in most cases because they ran out of cash—money which, when available, would have led to a different outcome. Yet, before contracting a third party to recover what is owed, you ought to have done due diligence in the first place to avoid bad debts.
Most importantly, knowing your customer is a crucial step in getting paid.
You can check on the below to avoid future inconveniences:
- If you have invoiced the correct amount to the right company at the right address
- If you have included a purchase order where asked for
- If you have contacted your customer with regards to the payment process.
It is damning how many invoices go unpaid for one reason or the other. But, mainly because they ended up in the wrong hands, this simple tips can help identify problems at an early stage and, as a result, get paid. Ostensibly, the debt recovery agency will need a grasp of your bookkeeping records for a successful debt collection.
The most common questions asked include:
- How do I choose a debt collection agency?
- Should the Financial Conduct Authority authorize them?
- What process will the debt collection agency use to recover my money?
- Do all debt collection agencies operate on a similar model?
- When should I engage a debt collection agency?
As a small business owner in London, you are faced with different challenges, one of them being a bad debt. The secret to avoiding such unwarranted circumstances is to have an intelligent accounting system in place and carrying out a credit check on the business. Achieving good bookkeeping can be used for decision making and, if need be admissible in court.
For the best accounting experience, contact us today: