Write Offs….. They’re not just limited to reckless car drivers.
April brings the season of new financial years and new starts.
Final accounts can help you celebrate your achievements but they can also highlight failings. One such failing is the value of your invoices that you didn’t get paid. The inability to get paid for your hard earned work.
At the end of the financial year, a decision is made to write off these values for one reason or another…. It’s too much work to pursue them, it’s not cost effective or quite possibly, I simply don’t know how to go about it !
There are two main reasons why you would write off debts :
1, The company owing you the money has entered insolvency.
2, You’ve decided it’s not financial viable to pursue the debt.
Should you suffer a customer insolvency, then there’s very little anybody can do. Companies go bust daily, often with little warning. But what can you learn from an insolvency ?
If the insolvency company owed monies within 60 days, then you’ve probably done all you could to chase your monies. Sadly this is just the cost of running a successful business, you’re going to encounter such challenges more and more as you get busier and busier.
However if you have some insolvencies over 60 days, then you need to look at your chase procedures and ask… ‘What could I do to reduce my risk ? What else can I do to place the extra pressure on the customer to make sure I’m paid in front of somebody else ?
Rest assured, we’re at hand to help you find answers to these questions, just give us a call or drop us a line.
If you have lots of ‘standard’ write offs, there’s plenty of reasons as to why you should continue to pursue your accounts.
Did you know you still have a legal right to pursue written off debts ? In fact, you have SIX years to pursue your accounts.
Let’s not forget, your invoices represent not only the cost you’ve incurred in completing the project but also your profit.
Make no bones about it, if you continue to allow debts to simply be written off, you will not only continue to lose the money that you’ve invested in the project but you’ll also be losing money you could have invested into your business.
So what can you do about it ? Simple, don’t just accept it, take action to avoid it !
At Corp & Comm, we work pretty much on a no win – no fee basis.
There’s a small fee for the initial instruction but after that, our works, expertise and processes are free to you.
Once your monies are repaid then a reasonable commission fee is raised but look at it this way, receiving an invoice from us is a good place to be because that means you’ve received monies that you didn’t expect to see.
So don’t delay, make contact today. Like we said, you’ve got SIX years to act but just don’t take that too literally.