The Financial Impact of Losing Business Documents
Understanding how seemingly harmless documents can impact your business.
Invoices and Statements of Accounts (SOA) :
Pretty much all businesses take care of these documents.
Delivery Receipts, Proof of Billing and Transmittals:
Based on our experience this is where things start to go south.
- First these documents involve signed copies.
- These documents involve doing some field work.
- These documents exchange many hands.
The document handing required from these documents is the main reason they get lost. Sometimes not even lost but misplaced or misfiled.
Unfortunately larger business customers require these documents as attachments to Invoices and SOAs.
Most of us retain a word document copy of contracts we issue, along with revisions made to them.
However, we sometimes lose the signed copies.
Impact of Losing Them
Billing Disputes and VERY Long Accounts Receivable Settlement
Whenever billing disputes happen, it is almost guaranteed that delayed collection will follow.
This is normally fine for big business, but it can be critical for small and medium businesses.
Loss of Revenue
Even worse is the write-off of potential revenue due to missing documentation
Lose the ability to rectify a mistake
One cannot really argue when there is no documentation in place. Leaves no chance to recover losses.