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Newsletter April 2006

 
 
Dear Karen,

As a community service, the Law Offices of Karen M. Riggio, LLC publishes a complimentary e-newsletter designed for business owners and independent contractors. Each month, we offer valuable tips and practical, real life answers to today’s common contract issues and collection problems. Feel free to e-mail us your suggestions for future articles.

Karen M. Riggio

 
 

Tip of the Month
Accurate Statement of Accounts

The success of your business enterprise is highly dependent on the use of accurate, relevant and timely financial information. Proper accounting not only provides the necessary tools for your decision making, but it is critical during the debt collection process.

Your recordkeeping and statement of accounts can have a positive or negative effect on your business credibility. In the court’s eyes... consistency matters. During debt collection proceedings, judges will request your documentation and review the following details:

  • Accurate invoice amounts and addition


  • Proper dates and invoice numbers


  • Description of products or services


  • Consistent payment terms (i.e.: net 15, net 30)


  • Clear late fee policies and conditions


  • Exact payments received (including dates and how much)


  • Correct customer information (name, address, phone)

Should you ever need to take legal action to collect an unpaid debt, remember accurate, consistent information is vital to your attorney... to build your case and demonstrate your business credibility.

To help foster open communication with your customers, consider reviewing your accounts receivable monthly (or more often) and make phone calls to collect delinquent accounts. This process will help you collect your receivables, improve your cash flow, and provide a good opportunity to get feedback from your customers. Should a difference of opinion arise, you have the ability to address the discrepancy immediately and eliminate a future problem.

 
 


Since 1983, Attorney Karen M. Riggio has helped thousands of clients create clear and concise written agreements and avoid potential business disputes. Her practice concentrates in business and commercial law, and provides experienced legal counsel in contracts, debt collection, dispute resolution, and real estate. For more information, call 203-968-8715 or visit www.kmriggio.com.


© 2006 Law Offices of Karen M. Riggio, LLC
Concentrating on Business and Commercial Law
Connecticut • New York