The importance of good debtor management in corona times
In these uncertain times, it is very important that you have control over the credit that is outstanding with your customers. Invoicing too late or your customers do not comply with the payment terms can cost you money. In this blog we explain that good debtor management is particularly important in 2021.
The corona pandemic has major economic consequences. That's no surprise. The hospitality and event sectors alone are hit hard by the lockdown and other industries are also facing contraction. Perhaps completely against the odds, few entrepreneurs went bankrupt in 2020.
Deferral of paying taxes is not a adjustment
The reason for the absence of an increasing number of bankruptcies can be found in the government measures. Since the outbreak of the corona crisis, the government has been supporting companies with, among other things, the Temporary Bridging Scheme for self-employed persons and the Reimbursement Fixed Costs.
In addition to financial 'injections' such as Tozo and TVL, many entrepreneurs have also been deferred from paying taxes. According to rijksoverheid.nl, more than 200,000 tax deferrals were used in the third quarter of 2020, amounting to € 12 billion (source: central government).
However, deferral is not an adjustment and from 2021 the back tax will have to be repaid (in instalments). Many entrepreneurs have seen their incomes fall to such an extent over the past year and savings evaporate accordingly that paying off becomes difficult. The number of bankruptcies is therefore expected to increase significantly in the second half of 2021.
Keep your customers to the payment agreements
If your customers pay late, that's very annoying. If your customers don't pay, that's even more annoying. In order to minimize the (cash flow) impact of a possible bankruptcy of your customer, it is important to take a critical look at your debtor management. This means, among other things, attention to:
• Clear invoices, payment terms and conditions
• Outstanding invoices
• Less well-paying customers
• Fixed reminder periods
The most important thing is that you keep your customers to the payment agreements. Do you find that difficult because you don't want to risk the relationship... then know that we can help you.
Accountor is an expert in the field of debtor management. We collect invoices and at the same time ensure that your customers remain satisfied with your services. Outsourcing debtor management to Accountor saves you time and improves cash flow.
More control over debtor management? Contact us