- Pull Aged Receivables Summary report from Xero.
- Select the date: end of last month > Aged period > and update
- Review and check clients that has an aged invoice or invoice due
- Aged receivables report should only show clients that has an account with us, if COD clients show up on report, consult the reception, BL, SV, for possible reasons.
Aged invoices older than 2 months/ 60 days
- Send statement to client > add email: Please make sure that payment is submitted within the next 5 days to prevent any delays in future business & orders. Thank you for your prompt attention to this matter. If you have any questions or need assistance, feel free to reach out.
- Wait for response: 1 day to follow up.
- Call client if no response from email was received; Questions to ask creditors
- Why is payment delayed?
- When can we expect payment to be made?
- If in a case that the client is bankrupt or liquidated, consulting a credit company like Credit Guarantee or Accountability or another third party is indeed advisable.
- Create a credit note and push into Bad debts account.
- When bad debts are recovered/ Credit insurance was able to collect all debts we can do a receive money and the transaction, and push into bad debts recovered account.
Aged invoices due end of last month (30-day Accounts)
- Send out statements
- Call clients to confirm amounts outstanding (should be the same as what we have on our system) on week prior to end of the month.
- Review remittance or payments advice received from clients.
- Check if clients have all required documentation (invoices, credit notes, statements, POD’s (optional / on request only)
- Bookkeeper to check if payment allocations from bank feed is correct and send statement to clients first week of new month and second week, due to few clients only making payments first Friday of the new month.