Which of the following is a method to control bad debt?

To control bad debt effectively, implementing a method for consistent communication and follow-up with customers is essential. Daily callback completion serves as a proactive approach to engaging with customers regarding their payment obligations and any outstanding debts. This method not only provides an opportunity to remind customers about due payments but also allows for addressing any potential issues they may be facing in making those payments.

Through regular callbacks, a business can strengthen its relationship with customers, identify debt repayment barriers early, and make arrangements to mitigate financial difficulties. Such diligence can help reduce the chances of outstanding debts turning into bad debt, as it demonstrates to customers that the business is attentive and willing to work with them.

In contrast, while improving customer service can enhance customer satisfaction, it does not directly target the financial behaviors leading to bad debt. Improper underwriting can increase the likelihood of extending credit to high-risk customers; thus, it is detrimental to managing bad debt. Reducing staff may negatively impact customer interactions and could lead to a decrease in the ability to manage accounts receivables effectively. Therefore, daily callback completion stands out as a targeted method for actively controlling bad debt.