Question

7. What will be used to identify clients in default of trading terms?

8. What are the standards that you will need to adhere to when contacting clients in default of trading terms promptly and courteously to make satisfactory arrangements for the payment of their outstanding monies?

9. Discuss an organisational policy/procedures that could be implemented for monies owing that constitute breach of organisational credit policy

10. What types of information could be obtained from a review of the previous activities and of communication with clients?

Answer 1

7. What will be used to identify clients in default of trading terms?

The Payable aged trail balance can be used to check if the client Is defaulting on the payments. The aged payable trial balance will show the invoices that are overdue and also by how many days they are overdue.

8. What are the standards that you will need to adhere to when contacting clients in default of trading terms promptly and courteously to make satisfactory arrangements for the payment of their outstanding monies?

This is a very critical situation to contact the client to remind the clinet about the overdue invoices. This is because if we offend the client then this may make the client offended and the clinet may not pay the due amount.

So , the communication must be polite and must be correct as to days lapsed after the due date and the amount that is owned by the client.

9. Discuss an organizational policy/procedures that could be implemented for monies owing that constitute breach of organizational credit policy

Yes, there must be policies that must be incorporated to see the breach of contracts.

The policy must be to charge an interest and late fees based on the days that has been defaulted on the payment due date.

10. What types of information could be obtained from a review of the previous activities and of communication with clients?

This can be seen from the previous communication that how the client reply to our queries, behavior and loyalty to pay the dues.