Bad debts are death particularly if you trade on narrow margins.
A bad debt of a $1,100 invoice will not have a GST impact if you are registered on a cash basis. But a $1,000 of income at a 20% margin will require another $5,000 of sales to cover that loss.
So think twice before selling to customer who you doubt will pay you.
Or perhaps take payment up front.
Or perhaps set up a payment facility and don’t do anything until accepted.
Or ring us as we have dozens and dozens of solutions and strategies gained from years of dealing with different clients in all sorts of industries.
At MRS, we will spend today planning for your success.