Hey all.
I have a question which relates to my job.
I work in administration, and part of my job is phoning debtors; like everyone who does the job, it's really not my most favourite time of the month.
The thing which especially peeves me is that our terms (much like most businesses) are that people pay us by the 20th of the following month. This is all well and good, but my boss wants me on the phone RIGHT ON the 20th of the month asking debtors when they are going to pay.
This strikes me as being very rude and most unbusinesslike. I don't mind phoning people if they are a week to 10 days late or perhaps at the beginning of the next month, but right on the 20th just seems too soon to me.
My boss has even given me a written warning because of my reluctance to do it.
What is the generally accepted practice?
I know our business usually doesn't get phoned until we're in 30 days or 60 days.
The boss says he has to know for cash-flow reasons, but still....
I have a question which relates to my job.
I work in administration, and part of my job is phoning debtors; like everyone who does the job, it's really not my most favourite time of the month.
The thing which especially peeves me is that our terms (much like most businesses) are that people pay us by the 20th of the following month. This is all well and good, but my boss wants me on the phone RIGHT ON the 20th of the month asking debtors when they are going to pay.
This strikes me as being very rude and most unbusinesslike. I don't mind phoning people if they are a week to 10 days late or perhaps at the beginning of the next month, but right on the 20th just seems too soon to me.
My boss has even given me a written warning because of my reluctance to do it.
What is the generally accepted practice?
I know our business usually doesn't get phoned until we're in 30 days or 60 days.
The boss says he has to know for cash-flow reasons, but still....
Perhaps you should look at it another way.
ReplyDeleteYour boss is going to pay you 10 days late because his credit controller did not chase the money. Cashflow is obviously tight, the business needs the money. As a non revenue creating member of staff it is possibly not quite so obvious to you but this is how business works. Pay your staff late they whinge and or quit. Pay IRD late get a big fine, pay your suppliers late go on stop credit.... And so on...
Yeah, I know the deal. Cashflow and getting money on time out of some companies I work for is a constant annoyance.
ReplyDeleteIt's odd that I can be issued with an order number (and in that itself states that the job must be allocated to a cost centre), but the signoff to be paid is delayed by internal inter-departmental squabbling over who has to cough up - usually between engineering & production departments.
Fletch
ReplyDeletethis has all the hallmarks of a business in trouble. If cashflow is so important that your boss is willing to give you a written warning over it, they are in trouble.
Find another job would be my view.
Yah,
ReplyDeleteand the thing is, most of our customers aren't bad payers. Last month I didn't ring a single one, and yet within the two weeks everyone had paid. I had hoped to do the same this month but kinda got caught out.
I think he's being a little keen, and could wait a few days, but in business you'll find a whole range of payers and collectors.
ReplyDeleteGiven the people you phone will also be in Accounts, and just doing their job, they are unlikely to take it personally, so try to be friendly, enquiring and business like and it may not be a big deal.
They'll just peg your company one of the "keen" ones, and others on their list will be slow askers, and usually get treated that way.
One guy I know used to send a little thank you note to people who he had chased up and eventually paid - the human connection made a difference and they were more likely to treat your invoice more favorably in the future if they thought you appreciated their efforts (so keep it genuine).
I have no problem with receiving calls on the 20th.
ReplyDeleteIn fact, if I've overlooked someone, then I'm usually happy to be reminded.
Hey Fletch, try turning it around and having a dialogue on the 10th. Did you receive our incvoince OK?, Are there any problems with the Account? What dates are you planning your cheque runs? etc etc.Most Accounts payable people are willing to discuss these things and you will be "front of mind" when the creditors are closed off.
ReplyDeletePre-empting the old "but I haven't had your invoices back from Mr X and without approvals I can't authorise payment" is much better than whinging at Mr X about moving the paperwork
Fletch:
ReplyDeleteWhat's "rude and unbusinesslike" is entering into a contract, receiving goods and services, and not holding up your end by meeting the agreed upon terms of payment. I used to work for a hotel on the conference side, and while we were pretty flexible (as you have to be in a highly competitive, narrow-margin industry) there were some organisations that were chronic late payers.
I hated making these kinds of calls too, but they were a damn sight more pleasant than getting roasted by the general manager because of all the red ink on my page of the balance sheet.
Craig, yeh, I understand.
ReplyDeleteI feel like a hypocrite though, because we are late payers - we owe some creditors from Feb and March and yet here I am on the phone on the 20th demanding money. If we paid right on the 20th I wouldn't feel so bad about it.
David, thanks will try that.
ReplyDeleteJust. do. your. job.
ReplyDeleteWhat JJ said.
ReplyDeleteYou are paid to do a job, right? People are supposed to pay their bills on time, right? That's their job too. If they are not going to their job and stick to the terms of the contract, why not give them a friendly reminder?
What on earth is the problem with that?
LOL, fine, fine.
ReplyDeleteWhat I was asking is what is generally accepted as far as how early to call - what the etiquette is. Yes, the 20th of the month is our terms and so it is with most businesses, but how many businesses hold people to the letter of the law? Most will give you a week or two before they start calling up.
I still consider it rudeness to be calling right on the day it's due before they've even had a chance to deposit any money.
Well, really...
ReplyDeleteIf you haven't paid BY the 20th of the month what legal right do they have to have this chance to deposit money ON the 20th ( ie late.) Its already late and they have reneged on their deal.
If busnineses don't hold people to the letter of the law, whats the point of the law in the first place? just a nice guideline?
If so, I`ll just go off and smack my kids come July - while I am smoking pot and speeding in the car I stole yesterday.
I always used to do the accounts so that they would arrive before the 20th.
ReplyDeleteFor those who got their invoices to me in time to do so...