When you\u2019re reviewing your receivable balances and they may or may not be overdue, there are things to watch out for when assessing their recoverability.\u00a0<\/p>\n
Account receivables are prone for third party conditions you are most often not aware of. You may not know what\u2019s exactly going on, so doing your best to stay in touch with your customers even if they are late just one day, is your best source of information I would say.<\/p>\n
The indications when you might start to question your receivable balance value are as follows (note that the list is no particular order):<\/p>\n
o\u00a0\u00a0\u00a0\u00a0\u00a0Payment discipline is not all that good; there are regularly invoices that are overdue.<\/p>\n
o\u00a0\u00a0\u00a0\u00a0\u00a0A customer usually always paying on time is having difficulties with just one payment \u2013 find out the source of problems.<\/p>\n
o\u00a0\u00a0\u00a0\u00a0\u00a0There are news from the market that certain types of businesses are facing either just hard times (i.e. not so many sales any more) or regulatory impacts (i.e. there are taxes they have to pay upfront etc. causing liquidity problems).<\/p>\n
o\u00a0\u00a0\u00a0\u00a0\u00a0You heard or read from the news that the client went to bankruptcy.<\/p>\n
o\u00a0\u00a0\u00a0\u00a0\u00a0The client operating in foreign countries may face difficulties in paying with foreign currencies abroad (i.e. the country they operate doesn\u2019t allow any foreign currency transactions cross border).<\/p>\n
o\u00a0\u00a0\u00a0\u00a0\u00a0Your customer just faced a fire or some other form of destruction of property.<\/p>\n
The list above is not inclusive meaning that there may be conditions specific to your country, business or situation that should raise a red flag and make you reach out to your customer immediately.<\/p>\n","protected":false},"excerpt":{"rendered":"
When you\u2019re reviewing your receivable balances and they may or may not be overdue, there are things to watch out for when assessing their recoverability.\u00a0<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[69],"tags":[],"class_list":["post-5149","post","type-post","status-publish","format-standard","hentry","category-1-17-accounts-receivable"],"aioseo_notices":[],"_links":{"self":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/5149","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/comments?post=5149"}],"version-history":[{"count":1,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/5149\/revisions"}],"predecessor-version":[{"id":5150,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/posts\/5149\/revisions\/5150"}],"wp:attachment":[{"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/media?parent=5149"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/categories?post=5149"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.officetodo.com\/public\/wp-json\/wp\/v2\/tags?post=5149"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}