Also known as how-much-are-you-owed-and-more-importantly-for-how-long. Putting together and sending out Debtor Reports is part of our standard Accountancy services, this helps you understand how much money is owed to your business; from whom and for how long. A good debtors report will also include further information such as when you can expect to receive payments owed, and communication with the debtor. This is our guide to what goes into a great debtors report.
Both the bank and the company keep tabs on in-coming and out-going payments. When the company receives its bank statement it's important to do what's called a bank reconciliation, which is where checks are done to make sure that the amounts shown on the bank statement are consistent or compatible with the records the company keeps.
Up to date ledger, including terms on invoice
The company ledger is a record of business transactions, before issuing a debtors report this ledger needs to be up to date as this is the primary source for the businesses' financial accounting reports.
Contents of Report
The report needs to clearly set out the names of the customers who owe money, the amount owed and how long they have owed it for. Any old invoices need to be explained and full comments provided on actions taken, actions required, dates, people and escalation if required.
This is the bit many accountants dislike as essentially it is chasing clients' customers for payments. However it's vitally important to be on the ball and keep communication up with clients' debtors. A good first step is to call the debtor and check they have received the invoice. They may challenge parts which will then need to be investigated. We always make sure to ask for an expected payment date and to call back if necessary.