There are actions you can take that are not only good business practice but can also help you to succeed in New York debt collection. One of those best business practices? Send a proper statement of account to customers.
All accounting and bookkeeping software can produce a customer’s statement of account, but not everyone uses it to their advantage. Is it your practice to send statements of account?
What is a statement of account?
The statement of account acts as a snapshot of a customer’s account at any given time. You should be able to produce a statement from the inception of the client relationship to the present or a given range of dates.
Why is it important?
The statement of account serves as a reminder to you and the customer of the balance that’s owed and the length of time it has remained unpaid. By examining the statement, you may – if you have not already — decrease or revoke further credit available to the customer.
In addition, a proper statement of account presents another way to win a debt collection case.
Why is it important to get it right?
If you send a customer a statement of account and the customer does not object to it, it gives rise to an environment where a favorable decision based on an account stated is obtainable. Be sure to send the statement of account to the customer that is legally responsible to pay the bills.
As in all billing, you must properly identify the customer and the customer’s correct address. Remember to include any DBAs. Do not use shortened forms of the customer’s name. We’ve recently discussed this in our blog post about clean debt collection.
The statement must reflect the balance that you are seeking to collect. If it reflects a zero balance then it cannot support your debt collection case for an account stated.
Most importantly, it is possible to win the case because you have sent out numerous statements to the client even if you can’t prove the rest of the case.
What should it look like?
A statement of account should have all responsible names on it and their addresses. It should have its creation date and list all credits and debits. You can find examples and templates online by searching statement of account or check your bookkeeping software. Here is a simple statement of account:
How should you send it?
A statement of account can be sent by email, fax, mail, special delivery or by any other method as agreed between you and your customer when you set up the account.
How often should you send it?
A good practice is to send a statement monthly to any customer with an open balance.
Call us!
No matter what kind of credit-related issues you have, they deserve the attention of seasoned professionals. We are here to answer your questions and offer assistance skillfully and efficiently. Contact jnager@ffgnesqs.com or call 212-686-0100.