How to Write a Debtor's Ledger Management Policy

How to Write a Debtor's Ledger Management Policy

Why have a Debtor's Ledger Management Policy?

• Because it makes good business sense

  and

• There is no point in making a sale if you don’t get paid for it!

The Debtor’s Ledger Management Policy is a document that recognizes that there is one system to control customer debt. Everything is interrelated.

The policy encompasses all the processes of

• accounts receivable

• terms of trade

• the assessment of new customers for credit

• dealing with complaints

• the debt collection activities

• privacy and consumer laws.

In addition, there are detailed actions described in the document to deal with customers who do not pay on time.

It refers to the Overdue Invoice Strategy which is a method of training the customer to pay when the invoice is due.

The Policy refers to the Customer Credit Policy for assessing the new customer and to the Terms of Trade Policy when the terms are offered to the new customer when they receive their letter of approval. The privacy and consumer laws are recognized in all documents and the Complaints Policy for when a complaint is received.

The Implementation Outline includes who will be responsible for managing the ledger, methods of monitoring the ledger and debt collection activities.

The Procedures include the purpose of the procedures and the scope which is who the policy applies to or is required to observe its rules such as the management, sales, and accounts employees. Following that, there is a description of the actions or specific procedures that support the policy and implementation outline.

My Experience to Deliver this Course

I am a business manager, qualified trainer, and small business owner. My background has been in office administration and then business management for over 25 years in 20 different industries. Cash flow control and cost management in addition to accounting, budgeting and customer debt collection has been my strengths. I was also a quality assurance manager and my role included writing policies and procedures. So I would like to share my knowledge and experience with small business owners and administration personnel to improve their overall system of controlling customer debt and getting the customer to pay their account on time.

Join me in the course

I am sure you are like most people who go into business; you are doing it to make money, and you feel you need to give credit to make sales. Debt collecting costs you money. So let's give you a new strategy of running your business by introducing an integrated method of controlling customer debt, so you can reduce the chance of writing off a sale, getting the invoices paid on time and keeping a good relationship with your customer.

Step by Step Guide

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What you will learn

• How to write a Debtor's Ledger Management Policy to make sure the customer pays on time.

Rating: 0

Level: Intermediate Level

Duration: 36 mins

Instructor: Zanette Phillips