Dealing With Business Debt Disputes- Why Good Bookkeeping Matters

by khalid on 17/02/2012 · 0 comments

Business debt disputes aren’t uncommon. They’re usually a result of faulty record keeping on someone’s part. They’re rarely intentional, but they’re real nuisances. The fact is that most debt disputes are based on some sort of mistake somewhere in one system or the other, or sometimes both. The errors are on the books, somewhere. Ironically, everybody knows about the basics of small business accounting, but not many people recognize how important small business bookkeeping really is in keeping business records accurate.

The truth is that book errors are a lot more common than people realize. A survey done some years ago found that even expert data entry people have an average error rate of 5%. Consider how much business data gets entered every day, and you can see the problem. Many errors are typos, etc., but a percentage of them are figures. This is where basic bookkeeping becomes so important, fixing these errors before they become real problems.

Bookkeeping is often considered the “poor relation” of accountancy- But not by accountants. The truth is quite the opposite. Accountants, particularly forensic accountants, often employ or contract experienced bookkeepers specifically to find these problems, and most importantly to untangle the kinds of mess they create.

As a matter of fact, bookkeeping is a good way to deal with business debt disputes. All good professional debt collection agencies and debt recovery services base the debt collection process on verifiable information. This is best practice, as well as being common sense. The idea is to find any bad information before it costs their clients money.

Advantages of Having a Bookkeeping Service

For businesses, having your own bookkeeping service available when you need it is a real godsend. If you haven’t got the time or the space to do the proper bookkeeping you need to do, you’ll find that this service naturally tidies up your books and makes sure they’re in the correct format. You’ll also find that your bookkeepers know how to help organize your accounts and records into very efficient, straightforward and easy to manage operations. It’s an education in itself, and very valuable when you need to know where to look for issues.

In terms of managing debt, however, bookkeeping is a godsend. The big advantage here is that you can prove and verify your records irrefutably. No gaps, no missing bits of paper and no guesswork. Other businesses appreciate this more than it may seem, too, because it tells them their own books need a look. If you’ve ever heard the shock of someone who’s discovered their invoices have made a massive blunder, you’ll understand why.

The easy way to get your own bookkeeping services on standby and for a thorough check of your books is to hunt down an accounting practice that provides these services. You’ll be amazed at how useful this service is, and you’ll also find that your books suddenly become a lot easier to work with. Get your bookkeepers, because their service will more than pay for itself.

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