Creating a back office alert system where cheque receipt is delayed, or where actual cheque details are incorrect from the data on the system Cheque image upload while punching information
Although client is in default but client is also god, so the warning should be issued to client but the penalty be imposed on the defaulting remiser/branch manager & let them decide whether they can cope up with the default of that client or not.
Installing a machine in every franchisee outlet to collect cheques as we have seen in banks recently.Cheque should be dropped in and amount gets credited to the account. In case cheque is not cleared by the date levy a penalty on the total due amount. Intial expenses may be higher on account of installation of machines but considering the realisation and penalties imposed and long term planning will be effective.
Since the analysis is already done i guess i have to just conclude with the logics...firstly i would recommend that the bank accounts be linked to the RMS software. this way if the cheque is not realised within the T 2 days in the bank account the software will automotically closes the clients account...also this helps in virtual cheque details being fed into the system....a cheque number, date, party name account number are all virtual....in spite of all these details if the physical transation has not effected in the balance of the company account...the clients account should automoatically be considered suspended.
All business have risk but & if you do broking work then it have 100 % risk but you have more solution to do work on minimum rik. 1st you cover margin from clint against his work if he pay by chq then start his work after clear the chq. without margin don't do any body work.margin figure also on basis of t 2 system we all know that how much market can slide down side. if any clint want to tdo tranjection in sell then 1st take that scrips transfer in your d-met a/c after that sell it and against sell don,t give permission to buy more then 200 % of sell value. and in case of clint paid margin but don,t paid full amount next day against his tranjection for that before open clint a/c do an agreement with him that you are fully authroised to do tranjection on behav of clint if he faild to pay amout of tranjection. don,t do any tranjection on feith. i know that this will efected your business but in starting you earning is low but after some time you know that you earn more then last year and more clint with more work.
your performance appraisal of the branches should not be based on business generated alone, it should also include weightage for the collections. U may call it a strike rate as in cricket which is Collections made divided by business generated. Keep norms for this to judge which is good and which is excellent.
The best solution for the same is enter the cheque details by every branch with cheque no. bank date and party name and these information should be available with HO also. After two or three days if the status of the cheque cleared, then its ok otherwise the respective branch should be called for an explanation.
Also they have to submit the reconciliation account weekly and monthly
