How to keep a credit book

What should you write for every credit sale?

Write five things every time: the date, who took the goods, how much, what they took and when they will pay. With those five, nobody can argue about the account months later, and you never have to keep debts in your head.

If listing every item feels slow, at least write the big ones. "Oil, detergent, 5 kg flour" settles a question far faster than "groceries 64.00".

In Baki Fast you enter the amount on a calculator keypad. Add item lines if you like (quantity × price) and the total is worked out for you. Entries with a due date show up in the overdue and upcoming lists. More on the credit tracking page.

How do you record a payment?

Record each payment as a new line the moment it is made; never cross out the old line. That way you can always see who paid, when and how much.

1. Write the amount paid and the date.
2. Note how it was paid: cash, card or bank transfer.
3. For a part payment, do not clear the debt; take off only what was paid.
4. Tell the customer what is left, in person or with a short message.

The classic paper-book problem is crossing out what was paid and squeezing the remainder into the margin. After a few months nobody can read the page. In an app each payment is its own line and the balance updates by itself. After the entry you can send the customer a short note on WhatsApp or SMS: "Payment of 50.00 received today, balance now 125.00."

How do you check the book at the end of the month?

Set aside one day a month to check balances and send a statement to anyone whose account has grown. A customer replying "yes, that is right" is the best record you can have if a question comes up later.

1. Look at the totals: Whose balance grew, and who pays regularly?
2. Pick out the overdue accounts: They get a reminder first.
3. Send statements: Choose the period so every line and the balance sit on one page.
4. Settle differences right away: If a customer questions a line, sort it out that day.
5. Compare with your cash: Do the payments you recorded match the money that came in?

Baki Fast shares a PDF statement for any period in one tap. The cash book and the day summary show credit given, payments collected and the net cash in.

How much credit should you give each customer?

Set an upper limit for every customer from the start, and when the balance reaches it, ask for a payment before writing new credit. A limit protects you and stops a customer’s debt from growing past what they can pay.

• Start new customers with a small limit.
• Raise the limit slowly for customers who pay on time.
• Freeze the limit when payments slip; do not raise it until the old debt is cleared.
• Tell the customer their limit openly so it never comes as a surprise.
• Write the limit on the customer’s account in Baki Fast: the app warns you before a sale on credit would take the balance past it.

Talk about the rule, not the person. "We use the same limit for everyone" is much easier to accept than anything that sounds like "I don’t trust you".

For more, read how to get paid faster.

Paper notebook, spreadsheet or app?

With a handful of customers, paper works. As the list grows, an app saves real time on totals, reminders and statements. A spreadsheet is fine at a desk but awkward at a busy counter.

Whichever you choose, the rules stay the same: write the sale at once, record payments on their own line, check once a month. If you are thinking of moving off paper, moving from paper to an app walks you through it.

Common credit book mistakes

• "I’ll write it later": Sales left for the evening are often forgotten. Write them at once.
• Amount only: Without items and a date you have nothing to show if questioned.
• Crossing out payments: Always record a payment as a separate line.
• No due date: A debt with no payment day just keeps stretching.
• Never showing the balance: Customers who do not know their balance pay late and are surprised.
• One copy only: Notebooks get wet, phones break. Back up regularly.
• Debts on display: Leaving the book open on the counter or posting a list of debtors embarrasses people and breaks their privacy.

Baki Fast makes an automatic copy on the phone every day, and you can send a backup file to Drive, e-mail or WhatsApp whenever you like. Lock the app with a PIN, face or fingerprint. More under backup and privacy.