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Debtors, WIP and credit control

A fee is not a fee until the money is in the bank. Firms can see profits slip away because of their levels of debtors and work in progress. Equally, ineffective credit control procedures can seriously hamper the firm’s success.

Cash management

The Library and Information Service has articles, books and ebooks on cash management and credit control.

Credit control procedures

Adopting effective credit-control procedures is vital to running a successful business. To be effective, policies and procedures for credit control must be established, agreed and implemented. At the same time, day-to-day compliance with them must be monitored.

This helpsheet comprises:

  • a two-part checklist dealing with the firm’s policies and with more specific issues affecting individual clients;
  • practical tips on credit-control procedures;
  • details of the ICAEW Group Licence under the Consumer Credit Act 1974
  • a summary of the statutory right to charge interest on overdue payments; and
  • example credit control letters.

Practice fee funding

You may want to consider an accountancy fee-funding scheme to allow clients to spread the payment of your fees. The ICAEW's preferred supplier is Fee Plan from Premium Credit.