Accounts Receivable highlights the payment excuses to be wary of

Accounts Receivable Solutions highlights payment excuses that some businesses use, including paying the last bills first. It can take weeks to work out why old bills have not been paid. Part payment is another tactic because it can lead to endless discussion on how the error occurred. Deducting GST from payments is another method that can lead to confusion spanning several months. If this or something similar happens, one option is to hold supply until payment is received.

Competently managing cash flow during downturns requires expertise and good credit control, which is vital. Credit checks can be carried out on new customers before granting credit. Obtain four credit references from them (most credit account opening forms only ask for three, four is preferable) because a skilled 'late payer' may pay three creditors promptly and use them as references. Also, carry out checks on existing customers who have outstanding amounts owed you, on the basis of what would happen if they became insolvent.

The safety of your business – or that of your clients – means looking after assets.

Informing clients of payment excuses is what an accounting franchise or a bookkeeping franchise should do for their clients. This also applies to those wanting a commercially focused financial service franchise.

Disclaimer: Hints and ideas are provided in good faith and we cannot accept any responsibility for their usage.