The first step in preparing for the confirmation procedure is making the template for the letters. It’s best to have it done prior and even better if once and for all. Having nice and orderly templates ensures you’ll have all necessary bits covered; everything looks similar and is easily understandable to others.
Fields which are a must:
– Contact information obviously to whom the reply should be sent to;
– The date or period the balances are confirmed as at;
– The reason for the confirmations are done in first place;
– Whether your confirming receivables or payables;
– Your balance obviously;
– Place for comments (especially needed when there are differences).
Although we just noted down things that should be on the letter, there is something which shouldn’t. In practice we have seen a sentence similar to “If we don’t receive your reply, we do consider our balance correct and confirmed by you” being used on a confirmation letter. Now whilst it may seem like a good idea – saving time, saving paper etc. – it in fact does not give you reasonable assurance that the balance is confirmed. It may very well be that the supplier or customer didn’t even receive your request or is simply too busy at the moment and forgot the letter in next.
In short, make yourself a proper template and rest assured that it’s done once and for all.