NEWS

In this latest News post, we explain the importance of keeping your debtors and creditors up-to-date....

Debtors (accounts receivable) are individuals or entities that owe money to your business for goods or services you have provided. Conversely, creditors (accounts payable) are those to whom your business owes money.

 

Benefits of Keeping Debtors and Creditors Up to Date:

• Maintaining accurate records of both debtors and creditors is essential for effective cash flow management.
• Regularly updating records of debtors helps identify overdue accounts or potential bad debts early on.
• Access to real-time information about debtors and creditors enables informed decision-making.

 

Best Practices:

• Regularly reconcile debtors and creditors.
• Communicate effectively with outstanding debtors early on for resolution.
• Utilise accounting software to streamline record-keeping.

 

While debtors and creditors are fundamental components of business transactions, their effective management is paramount for financial stability and growth. By keeping records of debtors and creditors up to date, your business can optimise cash flow and make informed decisions for sustained success.

Don’t hesitate to reach out to your REAL Client Manager for personalised guidance tailored to your business needs.