Accountants provide vital credit management advice and support to SMEs to help them get paid on time.
Sound credit control combines a procedural approach with relationship-building, to ensure as smooth a cash flow as possible.
“Accountants can help enormously with cash flow through innovative billing procedures, and helping their clients manage debtors and work in progress,” observes Paul Daine of Premium Collections. “However, when it comes to delayed payments, a more specialist approach is necessary.”
“Even the firmest credit control procedures cannot always guard against bad debt,” Paul points out.
“Continued delayed payments can end up putting you in the worst possible position, where your customer goes under and you lose what they owe you.”
The answer, Paul believes, is in outsourced commercial debt recovery.
Collection is Not a Dirty Word
“Debt recovery is not about leaning on people or appearing in some way menacing,” Paul remarks. “It is a professional discipline and can yield excellent results for people who are owed money.”
There are clear benefits, both to accountancy practices, and their small and medium sized business clients.
Appointing a third party to manage the whole process of debt recovery and collection frees up time and resources.
“Accountants typically have enough on their plates without having to make numerous phone calls chasing up payments”
“Where sums are outstanding for a long time, and where normal channels have not yielded results, then it’s time to call in the debt recovery experts,” says Paul.
Paul clarifies how debt collection sits at the core of professional debt recovery, which means it yields consistently good results.
“We use tried and tested methods, and so hugely increase the chance of people recovering their bad debts in full.”
Cumulatively, this can dramatically reduce the amount of bad debt a business might need to write off each year, improving the balance sheet overall.
“That’s something accountants can certainly appreciate,” Paul remarks.
Sending Out Signals
“Sometimes the act of deciding to use a professional debt recovery agency is enough to help recover bad debt,” Paul explains.
“Credit control and dynamic accounting practices are business essentials. But so is having the means to recover your debts when other avenues have failed”
“It can be the case that simply appointing a debt collection specialist and communicating this to your debtors will prompt them to pay.”
“Using this specialist service sends out clear signals to customers about bad debt and late payment,” Paul concludes.