Each morning the collector makes his report for the previous day. The cashier compares the collector's report with his copies of the statements, and, as the collector must turn in both of his copies when no payment has been made, a safe check is had on the collector. To make the check more positive, it is the custom of the cashier to mail a copy of the statement to those customers who have made no payments, or partial payments, requesting them to compare with their records and advise if any discrepancies are found. This makes it impossible for the collector to hold out collections without detection.
Collecting from the Ledger. In many houses having no organized credit department, the collections are handled by the bookkeeper. When this work is added to his many other duties, the bookkeeper is obliged to devise some scheme that will eliminate detail—he has no time to make additional records. His method is to follow up collections direct from the ledger.
But there must be some method of bringing the accounts to notice when they require attention—an automatic system. The most simple scheme is shown in Fig. 20. Across the end of the ledger sheet—which is loose-leaf—- numbers representing the days of the month are printed, and metal markers, or tabs, are attached over the due dates.
To represent different stages in the collection of the accounts, different colors are used. When a charge is posted to the ledger sheet, a black tab is placed over the date on which the bill falls due. When payments are posted the tabs are removed, provided the account is paid in full; otherwise it is moved forward to the next due date. After the day's remittances are posted, all sheets with black tabs over the current date are referred to, and statements made. At the same time, white tabs are substituted for the black.
Fig. 20. Loose-Leaf Ledger Cross-Indexed for Due Dates
Fig. 21. Quadruplicate Draft Form which Includes Letters of Advice to Bank and Drawee