ChiDesk allows you to track an account balance for each client that can either be positive, if you owe them money, or negative if the client is a debtor and owes you money. When an Invoice is raised for a client their account balance immediately reflects a negative balance, and as soon as a receipt is recorded it balances out their account balance.
Managing Debtors
If a Client has a negative account balance with you, they will appear on the Dashboard under the Debtors section. To determine why they are a debtor you can open the client profile and run the Client Statement report. This will give you a detailed breakdown of all account activity by the client and will allow you to identify any over or under payments.
To remove a client from the debtors section you would need to record a receipt for the amount that they currently owe you. This would have the effect of balancing off their account balance.
- From the Debtors section you can also send a statement to clients by ticking the Client and clicking the Send Statement button. This helps you easily manage and follow-up outstanding debts.
- The Age Analysis report can help you get an overview of all debtors along with how old their debt is. This allows you to ensure debts do not stay outstanding for an extended period of time.
- If you want to write off a debt that you don't expect to be settled, you can record a receipt using a Payment Type that does not represent a cash inflow. Normally this would be a Payment Type of type Adjustment.