Don't Forget Debit Memos

Suppose a customer submits a payment that's $100 short — maybe they took an unauthorized discount
or overlooked part of the balance. Just as credits should be documented, so should shortages.

Prepare a debit memo showing:

• The invoice involved
• The amount still owed
• The reason for the adjustment
• The date the shortage was identified

This creates a complete account record and ensures the customer understands how the outstanding balance was calculated.

Avoid Unexplained Entries

One of the most common mistakes businesses make is posting adjustments without sufficient explanation. Every item on a statement should be supported by documentation. If an adjustment can't be explained and verified, it may be difficult — or impossible — to enforce later. Unexplained entries also damage your credibility. Customers are far more likely to challenge invoices when records appear incomplete or disorganized. Good documentation builds trust while protecting your legal rights.

Learn more in our latest article.

We’re Your Michigan Collection Company!

Our Michigan collection company has offices in Birmingham and Grand Rapids, we represent clients throughout Michigan and assist creditors across the United States and around the world. If you're dealing with unpaid accounts, disputed balances, or difficult collection matters, contact us at (248) 645-2440 or submit a contact form to discuss your options. We're here to help you pursue the money you're owed — efficiently, ethically, and effectively.