Why Do We Need To Keep A Proper Sales Ledger To Help In Credit Management

It is important for both accountant and credit controller to understand the importance of keepng a proper sale ledger. In fact the sales ledger is an essential source of internal information about credit performance and it should be regularly updated for new invoices, credit notes and cash received in order to:

• produce accurate management information
• recognize as early as possible debtors who are slowing down payments
• prevent the chasing of debts already settled
• identify customers who have reached their credit limit
• ensure customers comply with any agreed payment schedule