This article is drafted in the form of a check-list, identifying tasks that are to be performed by the person responsible for debtors' control within the firm. Such a person could include the practitioner; another partner designated thereto, an accountant or a debtors' control clerk. Peter Rafferty believes that poor debtors control is the result of poor communication and not encouraging ones clients to get into the habit of paying their legal bills. He divides the strategy into two categories, which will be covered briefly here.
1. Preparation for debtors' control
Here the emphasis is on having a debtors' control clerk compiling an accurate debtors database and activating it and keeping up to date with reports and emails about invoices.
2. The actions required
These actions are divided into four time periods and expanded upon, the periods are:
- Actions to be taken immediately after month-end;
- Actions to be taken seven days after month-end;
- Actions to be taken fourteen days after month-end; and
- Actions to be taken twenty one after month-end;
Reader Comments:
I agree with the views expressed in above mentioned topic, poor communication results in bad debts. From the credit policy, granting credit, supply of goods/services on credit, the credit management department need to communicate effectively with prospective customers and existing customers. The need for touching base with customers/debtors can never be over-emphasized.
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