Money owed to a business can often comprise a significant percentage of total assets. It is, therefore, vital that this crucial asset is managed correctly, and that the sales ledger figure is not under or overstated.
The exact verification process will vary depending on the company in question, but the following key concerns will usually be addressed:
1. Confirmation that all receivables exist. This is done by contacting the debtor and asking them to confirm the amounts shown on the account, which also includes balances not yet due. This will normally be by telephone, but can incorporate emails.
2.Confirmation of invoices in query. This is undertaken to confirm the amount due for payment and if a query exists then this balance can be utilised to again assess the correct ledger figure.
3. Confirm how ‘queried’ invoicing is defined and the steps which are taken before it turns into ‘bad’ debt.
BTG Advisory has an experienced team of professionals who are perfectly placed to conduct a thorough review of your debtor book. This process can extremely advantageous to your company and its financial position. Following the verification, we can make suggestions on where improvements can be made to ensure your invoicing procedure is as effective as possible to reduce any potential payment delays.