Documenting the File: Having Good Notes When You Need Them
Why is it important to keep all your customer’s records?
What are the most important things to keep track of with your customers?
The short version is, “keep everything.” Just as you keep records of your customers’ credit applications, purchases, and payments, you must also track your collection efforts. Before the account is delinquent, your records help you avoid confusion and get paid. After the account is delinquent, you’re preparing for litigation, which you hope doesn’t happen. You’ll need detailed notes if litigation comes into play.
Here’s a detailed breakdown of all the customer documentation that you should keep on file:
- Your customer’s entire credit file. Credit applications, invoices, purchase orders, debit and credit memos, and a ledger summarizing all transactions (a ledger comes in handy when your customer wants to nitpick the account or suddenly develops amnesia when reminded that there’s a balance due).
- Notes of phone calls made or received, along with dates and responses. If the debtor admits owing the amount due, be sure to include that in your note. Admissions are extremely important if you end up having to go to court.
- Notes made by employees of your company. Include notes regarding meetings, promises, disputes – anything relating to the account.
- Copies of all follow-up statements. Your copies should be exactly as they were sent to the debtor, including any markings of “urgent,” “reminder,” “past due,” and so on, so you can demonstrate your persistent efforts to collect the debt without resorting to litigation.
- Copies of all demand letters and follow-up correspondence. Keep records of all correspondence, no matter how it was sent. Keep copies of letters, emails, faxes, or any other written exchanges.
A rule to live by: he who has the most paper wins.
Need help collecting commercial debt from someone in Michigan?
You’re in the right place!
Your money is our #1 priority. If your or your debtor live in Michigan, we can take on your commercial collections. Take the pressure and frustration off your plate by contacting the Mullers at (248) 645-2440 or by submitting a contact form.
