Account reconciliation is a major headache for most distributors. Every time they reconcile accounts, problems of one kind or another arise. Recently, while visiting the market, I encountered such a problem: the finance department found that a KA supermarket had deducted more money than it should have, but because the accounts were unclear, the issue dragged on for months, and when they tried to review the accounts, it became a dispute and eventually a bad debt. Traditional small shops have similar issues: salespeople give out display rewards and case-cutting rewards, but without leaving any proof, the shop denies receiving them, and the distributor has to pay again. In short, unclear accounts have caused many problems for distributors, even leading to lost customers. As a salesperson, you sell goods to get money, invest in market expenses and policies, and deal with money and accounts every day. Only when expenses and accounts are clear can sales performance go smoothly. How can you manage accounts well? I believe the core lies in three aspects: sales operations, finance, and customers. Distributors can optimize account management around these three areas and provide corresponding solutions to problems that arise during operations. -01- Sales Operations: Non-standard Systems, Too Many Loopholes Salespeople have frequent transactions with small shops, and if they don't handle accounts properly on a daily basis or reconcile accounts regularly, problems go unnoticed. When both parties finally reconcile accounts after a long time, the accounts are unclear, customers don't settle, receivables can't be collected, and it becomes a bad debt. Secondly, if the account system is not standardized, salespeople can find loopholes and exploit the company. Hongye Hengda experienced this: a salesperson privately carved a company seal and had the supermarket pay directly into his personal account. Because the supermarket had a credit period, the discrepancy of 200,000 to 300,000 yuan wasn't noticed until he resigned and the finance staff went to handle the handover, only to find that the actual accounts didn't match the company's books. But the salesperson had been doing this for over a year. Another situation is when departing employees don't hand over properly or leave without any handover. Old employees resign and leave directly, without properly handing over to the new salesperson. When the new salesperson visits terminal customers, they don't know how to handle previously promised policies that have no agreements. Of course, some terminal owners may take advantage of a change in salesperson or distributor to demand more fees. When Hongye Hengda took over the Panjin market, due to poor handover, many customers took the opportunity to demand fees, and to maintain the market, the company had to pay. Solutions: Salespeople are in direct contact with terminals. In unexpected situations, they may not have time to report back, so the company should have the finance team train salespeople in basic financial knowledge and financial management systems, so they know how to follow financial procedures when problems arise. First, regarding reconciliation and credit periods: distributors should establish a standard accounts receivable system. Stores with credit periods must be approved by the company, and collections must be assessed twice a month, with clear responsible persons.

  1. For temporary debts approved by the company that become bad debts, the department general manager bears 20% and the responsible salesperson bears 80%.
  2. If a credit-period store exceeds the reconciliation period by 7 days without reconciliation, a fine of 10 yuan per store per day is imposed. If it exceeds the payment period by 7 days without payment, a fine of 10 yuan per store per day is imposed.
  3. Temporary debts accrue interest daily. If collected within 7 days, the salesperson only bears the bank interest. If it exceeds 7 days, a late fee of 10 yuan per day per order is charged.
  4. If salespeople or drivers occupy company funds, an additional interest of 10% per day is charged. For problematic credit-period stores, the reconciliation clerk is fined, and for temporary debts, the cashier is fined. Once the standardized system is established, it must be strictly enforced, and salespeople should avoid these problems. As the saying goes, "A good memory is not as good as a bad pen." Require each salesperson to keep an account book to record special customer account issues, clearly noting each store's policies and agreements, so they know how to solve problems when they arise. For issues left by departing salespeople, distributors should establish a system for salesperson departure and onboarding, including account handover and market legacy issues. Strengthen the onboarding and departure processes, verify whether departing employees have any temporary debts, credit-period IOUs, or other legacy issues, and withhold wages for 60 days after departure. If any legacy issues arise within those 60 days, deduct them from the departing employee's wages. -02- Finance: Finance Not Involved in Customer Management Often, salespeople negotiate policies and promotions with terminals, and standards are set, but the contracts are not clearly written and are not reviewed by finance, leading to conflicts with terminals. For example, if the agreement is that a fee is only given for purchasing six cases of goods, but the terminal owner is dishonest and demands the fee without buying enough, and the contract doesn't specify clearly, conflicts naturally arise. Regarding account issues for credit-period stores, KA stores and large supermarkets usually have credit periods, and if accounts are not checked in time, problems occur. If invoices are not sent out by the specified time, they have to wait until the next month, delaying payment and directly affecting the distributor's cash flow, leading to profit loss. For example, large stores may secretly deduct price differences or improper display fees, over-deducting tens of thousands of yuan. But because too much time has passed and the data can't be clarified, and the distributor can't afford to lose the customer, they have to bear the loss themselves. Another common situation is that when salespeople reconcile accounts with supermarkets, finance is not involved, and the customer accounts are solely determined by the salesperson. By the time finance gets involved, many major loopholes have already appeared. Solutions: Whether in modern or traditional channels, contract terms must be clear, avoiding ambiguous issues. Especially regarding fees, standards, fee amounts, and time limits should be clearly listed. Both the small shop and the salesperson should sign, and finance personnel should review. Secondly, for credit-period stores, finance must track accounts well, settling monthly. Reconciliation dates and invoice mailing dates should be clearly defined in the system. All salesperson expenses and payments should involve finance personnel. Fee reimbursement and reconciliation cannot be based solely on the salesperson's accounts. For KA large stores, salesperson participation is 50%, and finance participation is 50%; for small shops, salesperson participation is 70%, and finance participation is 30%. Whenever reconciliation is done, finance must follow up, review fee reimbursement, usage, and profit data, and provide reference and audit for the boss. -03- Customers: No Proof, Ambiguous Contracts Many salespeople don't develop the habit of leaving proof when reimbursing terminal expenses or policies. This can lead to problems: even if the fee has been paid, the customer denies it, and without proof, it's hard to handle. Last year, when I visited stores, I encountered this situation: the shop owner said they didn't receive a month's reward, but the salesperson said they had given it. Without proof, the reward was eventually paid again. Or salespeople negotiate fee standards without signing an agreement. At settlement time, the salesperson says the standard wasn't met, but the customer says it was. For example, a company policy might be that for every 100 cases sold by a small shop, an additional 3 yuan per case is rewarded, totaling 300 yuan, with a specified date for reimbursement. But without a proper agreement, the shop owner demands the money after buying only 80 cases. Of course, there are also cases where customers request policy rebates, but salespeople delay reimbursement, or even take the money themselves. Regardless of the situation, it greatly affects customer relationships. Because without proof, if the terminal doesn't receive the fee or reward, they're certainly unhappy. Eventually, arguments arise, which is fatal to customer relationships. The terminal owner might stop carrying your product and switch to a competitor. Solutions: When salespeople agree on policies with terminals, they must sign contracts to ensure clear terms. Especially for CL stores, all incentive policies must have agreements with clear standards, process indicators, reimbursement amounts, and reimbursement times, and the customer must sign. This prevents good things from turning bad. Giving customers fees is a good thing, but if it becomes bad due to poor agreements, it's not worth it. Emphasize one point: never treat the agreement as just a result; make it a process. The purpose of the agreement is to encourage customers to strive and buy more. Therefore, track it in a timely manner. Salespeople should promptly urge customers to complete their monthly goals and strive to help them earn the reward. Because a customer might sign up for 100 cases but only complete 80, and if they can't get the reward, they feel unbalanced, turning it into a bad thing. So salespeople must follow up and remind terminal customers. Secondly, for all fee reimbursements and rebates, money should not be given to salespeople. Have the customer write an authorization letter, stamped with the customer's seal, and the money is directly transferred to the customer's account, reimbursed regularly, so salespeople don't handle the money. After fee reimbursement, have the customer issue a proof, and keep the documents for at least one year. This way, if account issues arise, there is evidence to follow, and disputes can be avoided. Final Thoughts: As business grows, financial problems at terminals will also increase. Bosses cannot adopt a "patch the leak when it happens" mindset. Record problems encountered in daily operations, learn from them, and form systems to reduce the occurrence of problems. Especially for account and financial management, it is the top priority for the entire company, running through the entire distribution business. Once problems arise, the distributor's survival is seriously threatened. Therefore, distributors should continuously summarize experience in daily management, establish account management systems based on problems, and avoid repeating mistakes.