The importance of record keeping in debt collection

How good is your record keeping?

How good is your record keeping?

There is only one time when record keeping is important for a business - all the time! If your filing is in disarray and clients are unbilled or out of touch, you could be on a slippery slope to some poor cash flow in the near future. Here are some of the ways that good record keeping can help your business stay on top of things.

Before it's time to collect

Keeping your paperwork up to date can help you avoid the debt collection process. By establishing your terms and conditions of trade at the outset, and keeping these contracts relevant and current your credit management process will be off to a good start.

The next step is making sure your accounts receivable is nicely balanced each month. While unpaid debts can be swiftly dealt with using the help of Commercial Credit Services, it can be hard for businesses to keep an eye on what should be coming in in the first place if the books are a mess.

During the debt recovery process

Last year ASIC and the ACCC released revised guidelines on lawful contact between debt collectors and the consumers that they are following up.

This is why it's absolutely imperative that detailed records are kept of all communications with a customer when attempting to recover a debt. Commercial Credit Services' robust system ensures that all necessary notations are made - protecting your business at all times and aiding in your debt recovery.

For those that are struggling with terms of trade or other aspects of credit management, Commercial Credit Services is here to help. We don't just get involved when debts need to be collected - we can help you avoid the process by having proper documentation set up in the first place.