DEBT RECOVERY - 08.06.2010

Convert important documents to PDF files

On top of records

Directors like you will be meticulous about the company’s record-keeping and the accuracy of those documents. You will also be hot on contracts and invoices. For reasons of convenience, speed and cost, these are often sent by e-mail, or other online means; why wait for postal delivery when there’s no need?

The right format?

But the format in which you save and send a computer file can be important, particularly if a dispute arises later. Let’s look at some examples.

Contracts. When negotiating the terms of a contract, the parties will discuss terms via e-mail exchanges, or a single document where comments and/or changes are highlighted in a different colour or font.

Terms and conditions. These can be attached to e-mails, contracts or sent as separate documents.

Invoices. Many companies allow these to be submitted by e-mail. Not only can the process be speeded up, it ensures confidentiality.

What’s the problem here?

In the majority of cases these documents will be created in Word-based packages. But unless you protect the file, i.e. by making it “read-only”, then it can easily be altered at the other end. This may not always be deliberate, e.g. some Word templates will auto-update the date whenever a file is opened. So if it sits in an inbox for two weeks whilst the recipient is on holiday, it will default to the date they open it.

In case of a dispute

For them, the invoice is brand new; for you it’s 14 days old. If you haven’t printed a copy, you may have trouble convincing them payment is overdue two weeks down the line. Also, terms and conditions and contracts can be “tweaked”, e.g. payment terms changed to 40 days from 30, if there’s a dispute.

Matter of evidence. If problems arise, the courts will always look at the paper trail. So how can the directors protect the company’s position?

Change of style

Converting documents to PDF will ensure that they are tamper-proof at both ends. For example, it will stop an inexperienced employee from “altering” important documents by mistake when they are learning the IT system.

Tip 1. This takes seconds to do and you won’t need to buy any expensive software - although the recipient may need to download some to view it, but this is free (see The next step).

Tip 2. Save the file in Word format first and then save it again as a PDF. That way, you have both copies should any changes need to be made later - but you will control who does this.

Tip 3. When negotiating contract terms, amendments can also be sent and approved this way. This will save the need to send lengthy documents back and forth.

For further information on how to convert a file to PDF format and view it, visit http://companydirector.indicator.co.uk(CD 11.18.07).