What are debtors and creditors?

Creditors and Debtors

To indicate the difference between debtors and creditors, it is first helpful to understand their meanings. It is essential that your accounting regarding debtors and creditors is in order. That’s why efficient and smart debtor management is so important.

What is a debtor?

The meaning of debtors is customers or clients. Debtors of your company are the customers to whom you send invoices and from whom you are owed money.

What are creditors?

The meaning of creditors is suppliers. Creditors of your company are suppliers to whom you owe money and from whom you receive invoices.

Insight into debtor management with Payt

Payt provides your company with the solution for optimal debtor management. The foundation for this is gaining insight into your financial situation, which can be achieved by combining accounting software with a smart debtor system. The biggest advantage for your company is that it ensures that debtors pay invoices more quickly. Furthermore, with this combination, you have full control over the financial situation.

Valuable time is wasted

The common and traditional way of managing debtor administration is by recording and sending invoices. If invoices remain unpaid, you must pay attention to it yourself and take the time to kindly send reminders or follow-ups. Or even call the customer, which can sometimes lead to awkward situations. These are tasks that take away from your company’s time. Moreover, it’s questionable whether this approach is effective when payments are delayed.

Automate your debtor management

You can save valuable time for your company by choosing to automate your debtor management. Payt’s smart debtor management software automates repetitive tasks. For example, by automatically sending an invoice reminder to a customer with an outstanding invoice.

Consistency

This saves you time that can be better spent on your business. Furthermore, the smart software ensures consistency from the moment you create an invoice to the final reminder. You can determine the process, timeline, and manner in which you remind debtors about unpaid invoices.

Real-time insight

You always have real-time insight into the current status of outstanding balances and the latest updates in the invoicing process. If repeated reminders prove ineffective, there is an attractive alternative for debt collection. Payt’s debtor management software offers the possibility to offer customers an automated payment plan.