Now we’ve established just how important these can be to the running of your organisation, let’s pick apart how we can deal with them in a productive way. LoveAdmin’s Aged Receivable report is the best place to start. Here, as we’ve discussed, you get a clear view on who owes what, and how long they’ve owed it for.
The best place to start is with debts that have been outstanding the longest, as these are the least likely to get paid without you getting involved
For recurring payments (your direct debits) the next south africa rcs data thing to do is to check whether their direct debit mandate is still active but don’t worry, LoveAdmin has got a report to tell you that too
If they do have an active mandate, this is excellent news! You’ll then be able to find the invoice for that customer and select the button to collect the payment and the system will do all the work
If they don’t have an active direct debit mandate, you’ll be able to email them from within the LoveAdmin system to remind them to set up a direct debit, and to get them to pay what they owe
If you’ve got a lot to do, focus on your biggest debts that are the most overdue and once they’re cleared, start working your way down until you’ve got nothing outstanding over 30 days
Preventing bad habits starting again
With a robust process in place, you’ll start to see the amount of money trapped in this bucket will start to go down. However, it’s also important to put measures in place to stop repeat offenders. You can do that through giving consequences to non-payers. This may sound overly harsh but done right, you’ll find that the number of your customers that are frequent flyers in your report will start to go down.