Different ways your business can avoid bad debts, by bookkeepers for small businesses in Sydney

Let’s look at what bad debts mean in business terms, most times people will think of it as your debts when in reality it is on the account that your business is unable to collect debts. Our bookkeepers for small business in Sydney will tell you how you can avoid bad debts in your business.

Here are few easy ways for you to avoid bad debts in your business:

  • Assess your customer’s creditworthiness, and set appropriate credit limits with all customers. Always set lower credit limits with new customers until they become trustworthy.
  • Making sure you have clear terms and conditions that new clients have to sign before any work gets done ensures your safety and almost guarantees that you will get paid.
  • Make sure all invoices are sent to the correct person, as some may need approval from the buyer before proceeding.
  • Adapt the way you will get paid to the way that all your customer’s pay, whether it be weekly or monthly.
  • Be sure formulate strategies with the help our small business bookkeepers in Sydney, just incase your debtors are not willing to pay and at times it is just better to consolidate your debts.

These are just a few hints on how you can avoid bad debt throughout your business, so feel free to contact our bookkeepers for small businesses in Sydney for all your bookkeeping needs!