In this edition of End of Year Tips 2014, you will find plenty of information on:
- Saving on limit costs
- Sales forecast 2015
- Request for postponement of payments
- Cleaning up the balance sheet
- Turnover declaration
Saving on limit costs
As many contracts expire at year-end, it is wise to consider whether or not you want to extend credit limits/tests. The rule of thumb is that all limits are renewed automatically and fees are also charged on these. So you can save on this by letting limits you no longer need expire. You can also decide for yourself whether you wish to continue with a debtor and set a limit yourself by means of payment experience or credit information up to the self-assessment limit specified in your policy. Tip: One year after withdrawal of a credit limit, cover options automatically reappear via self-assessment. If you still make uninsured transactions in the 12 months after the limit revocation, you can include these payments as self-assessment based on payment experience. However, you should declare the new transactions that occur again after one year.
Sales forecast 2015
In order to estimate the advance notes for 2015 as accurately as possible, it is important that you communicate any changes to us in good time. Advance notes are already pre-taxed with 21% insurance tax on the estimated domestic turnover. You will not pay insurance tax for your turnover abroad.
Request for postponement of payments
Around the holidays, it is common for companies to be poorly served and not pay bills on time. All credit insurance contracts have a deadline by which collection proceedings must be initiated. If you expect that your debtor will not pay within the set deadlines, it is wise to apply for a deferral of collection from your credit insurer in advance.
Cleaning up the balance sheet
The item accounts receivable is one of the largest asset items on the balance sheet at most companies. Reducing the size of this item leads to an interesting improvement in the ratios on your balance sheet. Therefore, pay extra attention now to collecting your receivables and consider carefully whether you can still have defaulters collected by a collection agency. You can submit your "uninsured debt collection" on our website www.xolv.nl.
Turnover declaration
At the end of an insurance year, you should declare the insured turnover to your credit insurer. Pay close attention to the fact that you do not have to declare a number of items as far as premium determination is concerned, namely;
- Private individuals
- Cash payments, advance payments
- Government agencies, unless there is political cover
- Related debtors (such as parent and subsidiary companies), unless covered under the policy
- A 0-limit or negative review provided it is less than one year old.
Once the final turnover statement has been determined, you will receive the end-of-year statement in which the advance invoices will be settled and any premium refund/surcharge scheme will be determined.
Do you have any questions about these End of Year Tips?
If you have any questions about these End of Year Tips or are interested in tailored advice, please contact us at info@xolv.nl or directly with your contact person.
