SOLID Business Automation Blog

3 Key Elements of an Effective Collections Process

Posted by Annette Gardner

08-Oct-2014 08:00:00

The best way to avoid bad debt is to adhere to a simple yet fundamental collections practice - keep the account good. But exactly how to do this is a challenge that businesses face on a daily basis.

So if you're wondering, "How do I set up an effective collections process?" We can help. We've combined some of the most successful strategies we've seen with advice from our own Financial Manager, Nadine Wong Ho, to build the following 3 key elements.


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Topics: Benefits, Advice, Statements & Invoices, Bad Debt, Collections

Issuing Statements can help reduce bad debt - here's 3 reasons why

Posted by Annette Gardner

28-Aug-2014 11:38:00

No one likes getting bills, it doesn't matter if they are delivered via text message, email or post. But in our experience, businesses dislike bad debt even more.

Debt that goes bad becomes unrecoverable. This happens when your customers may be unable to settle their accounts for various reasons e.g. poor cash flow or liquidation. Debt can also become bad in a scenario where it will cost the creditor more to collect the debt than the debt is worth.

Bad debt becomes an expense on a business's income statement and, if left uncontrolled, can have a significant impact on net profit.

One tool that businesses can use to enhance their collections process is statements.

"But I already send a bill out to my customers!" I hear you cry. Of course, you invoice your customers monthly, weekly or bi-weekly for services rendered. An invoice however performs a different function to a statement.
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Topics: Financials, Statements & Invoices, Bad Debt