Your Questions Answered by TaxAssist Accountants

How do I know how much I am owed by my customers?

I run a small business but struggle to keep on top of what my customers owe me, is there a way I can easily keep track of my debtors?

Answer

Running your own business is time consuming and you need to concentrate on growing your business which, in turn, means quite often you will not always have time to keep on top of your finances.

If your business doesn’t receive payments from your customers, your cashflow will be impacted and may mean your business may struggle to pay its suppliers or – in extreme cases – your staff’s wages.

To help keep on top of this, the use of bookkeeping software is recommended.

By inputting all the sales invoices, whether they are prepared within the software, manually or imported from another app to the bookkeeping software, you just need to allocate the receipts from your customers against the outstanding invoices to find out which customers owe you money at a particular point in time and how much.

By keeping your bookkeeping up to date, you have meaningful data to be able to chase your debtors at your earliest convenience to avoid any negative impact on the business’s cashflow. Statements showing outstanding balances can easily be sent to your debtors straight from the software itself.

We can assist you with the set-up of the software and provide training for you to do the bookkeeping yourself. Alternatively, at TaxAssist Accountants we can do the bookkeeping for you and let you have the relevant information to be able to chase the outstanding debts.

Information supplied by Cheryl Hopkins, Chartered Certified Accountant, TaxAssist Accountants. Advice shared in this article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayers’ circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take, action, as a result of reading this item, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.