In This Chapter
Taking in cash
Discovering the ins and outs of credit
Managing discounts for best results
Staying on top of returns and allowances
Monitoring payments due
Dealing with bad debt
Every business loves to take in money, and this means that you, the bookkeeper, have lots to do to ensure that sales are properly recorded in the books. In addition to recording the sales themselves, you must monitor customer accounts, discounts offered to customers, and customer returns and allowances.
If the business sells products on credit, you have to monitor customer accounts carefully in Trade Debtors (Accounts Receivable), including monitoring whether customers pay on time and alerting the sales team when customers are behind on their bills and future purchases on credit need to be declined. Some customers never pay, and in that case you must adjust the ...