Moving on through the reporting series that we see here, the next thing that many businesses would like to see as an overall improvement with their business is to start to track those Invoices who may be giving partial problems.
So over and above the reporting headers given in the previous blog, but highlighted again below:
– Reference Point
– Customer Name
– Date of Invoice
– Due date of Invoice
– Value of Invoice
– Contact Point
– AP Point (if different from Contact Point)
– The type of Product or Service that it has been billed against or for?
In addition to the above, further fields could be added in such as:
– how many more times did chasing continue
– what were the kind of excuses that came out from the Client when they failed to pay on the 1 monther
– is there any grievance that had started?
– is there any scope for future business?
– what does the relationship look like overall?
– are there any special terms put in place by the Client regarding getting paid which are not known by you?
This is an extremely crucial time for businesses to start clawing back what they are owed as this is a full one to two months that these Invoices are pending to you, and likelihood that it may be causing you some strain on your Cashflow if these Invoices are not collected on time.
To eradicate it at this stage is a better way of pinpointing how unpaid invoices are tracking over a two monther period which will be crucial when sitting down at the monthly board meeting, decision making and/or when you sit down with your Accountant and be able to strategise into the other parts of your business.
In next blog we look at 3 monther Reporting Cycle and what steps one should be looking at and any potential fields to be adding into the mix.