The pblm is a serious one and the same might be experienced throughout the industry.but takin steps as penalty n high interest in the longer run can prove detrimental to the organisation.
if this broking firms does charge penalty n interest clients as well as employees may go to another firm
i feel it can be curtailed to a grt extent by usin these simple n cost effective steps 1.clients to be informed beforehand tht in case the cheques r realised late due to clients fault then they have to share the burden of additional cost. 2.some additional services for clients makin payments in time 3.makin the staff aware the magnitude of the impact 4.givin more benefits to those branches which hav proper collections
since human beings r involved the pblm has to be solved thtway.coz installin sophisticated systems will be not yield results as ppl may find some other way
1) Cheques are reflected in the Bank a/c's of the Company on the next working day. Just reconcile the previous days' deposit with the Bank statement and you would know which cheque entries are dummy.
2) The people responsible for this mis reporting should be fired. No financial penalties are adequate to cover the market losses in case of loss on clients position.
The best possible solution is to making a cash management system with the collection bank and synchronizing the data with bank on cheque collected to the back office system. If details of cheque entered in the RMS do not tally with the deposit details of bank, the dealer to be penalized. A daily reconciliation is possible in the software's. Meiyappan.PL
Sales is complete when you give a product & get the value or the money.If the product had been given on credit then interest is to be charged for the same period. Normally to acheive the sales target such things happen .The target should be such that it should be acheivable or else it would only be credit sales & no revenue will be realised. Retention of clients is must but not at the cost of losses.Good clients will always be with you if you provide the right type of service. Penalising the client will be good only in the short term.But clients and organisation are meant to be long term. Corrections are to be taken at branch levels. Branch Managers should be made responsible for right information.Any misleading infomation to be credited from the Branch's salary. Training to be given to all employees on cases pertaining to fraud,so that they do not commit such fraud.The final consequence of such frauds should also be made public.
This is just a ruse to get a good solution without having to pay for a expensive consultant!!! LOL. What i'd say is PAY ME FIRST AND ONLY THEN WILL I THINK OF PROVIDING A SOLUTION!!!
1)The branch manager's incentive should be based on the amount generated after realization of the cheques rather than just on the amount generated. 2) An employee access code could be introduced which would help pin-point who has uploaded the cheque details. 3) A penalty should be introduced to deduct a %age from the incentives from defaulted payments.
