Announcements

Liquid Recovery and Liquid Accounts are happy to announce making the world of the SME easier. Letting Liquid Recovery ensuring you get paid on time and allowing Liquid Accounts to give you the power to carry your all you're booking needs all done via the cloud. You can be on the road, at home or on the go we are here to help you control your finances and help with a healthy cash flow. .

Setting up a Credit Control System

Mismanagement of cash flow is the single biggest reason that small businesses go under. Therefore, a good credit control system is an essential part of any business' accounting procedures. Maintaining consistent cash flow, avoiding bad debt and minimising late payments are essential for survival. Use the following checklist to set up a system.

Things to do
1. Set up a detailed credit control system
It must allow you to identify

• Invoices that have been raised,
• sent to customers
• Paid
• Need chasing
• Train several people on the system and test it thoroughly.

2. Decide on your general payment terms
Most importantly, decide on a payment date. Bear in mind that new customers should only be given a short time in which to pay. Go through the terms with each customer.

3. Send invoices promptly
Try to send all of them out the same day as goods are sent or delivered or service provided. Make sure the invoice is sent to the correctly named and titled person, at the right address.

4. Start an automatic reminder procedure
Flag invoices that are due; Phone, to chase up payment.

5. Appoint a 'debts person'
This should be a trusted employee in charge of following up bad debts. They should keep a record of all calls and letters sent. Remember you can charge interest under the Late Payment of Commercial Debts legislation.

6. Have a stop list for late-paying customers
Circulate this list to all appropriate employees to prevent further credit or goods being supplied. Inform the late payer that they are on the list.

Best practice

• Educate yourself/your staff with credit control training.
• Employ the services of a credit management consultant at least once every year to see if there are improvements you can make.
• Keep talking to debtors. Don't lose your temper with them, but make it clear you are prepared to take debt recovery action if they do not settle the invoice.

Call 0844 811 9463 or email info@liquidrecovery.co.uk to find out more today.

Invoice not paid? Sucess Only Debt Recovery- we only get paid when we recovery your money.

Credit Control – need to get paid on time and reduce debtor days let us do the chasing we set up the process and do the work

Testimonial

"Thank you for your very prompt and courteous help in recovering funds from a particularly tenacious 'Poor Payer' recently.

The feedback you gave us at each stage was prompt, reassuring and accurate, and you may be assured that we shall be using your services should similar circumstances arise in the future."

Mal Anderson, Director, Leeds Transformer Company Ltd