Installments guide
How to Keep Installment (Qist) Accounts: A Practical Guide
An installment business earns its profit over months, not at the counter. The sale is the easy part; the money arrives slowly, one payment at a time. Keeping clean qist accounts is what separates a business that grows from one that slowly fills up with unpaid balances.
By Rana Yasir Ali, Founder & CEO6 min read
1. Record everything on the day of the sale
Most recovery problems start with a thin sale record. Before the item leaves the shop, write down:
- Customer name, phone, CNIC and home address — and a second phone number if possible
- Guarantor name, phone, CNIC and address
- Cash price, advance (down payment), markup and the total installment price
- Number of installments, the amount of each, and the first due date
- Item details that prove which unit was sold: chassis and engine number for a bike, IMEI for a phone, serial number for an appliance
2. Build the schedule before the customer leaves
A schedule is a list of every installment with its due date and amount. Give the customer a printed copy and keep one yourself. When both sides hold the same paper, there is far less argument later about what was due and when.
Apply the markup to the balance after the advance, not to the full price. A bigger advance then means a smaller markup, which encourages customers to pay more up front.
| Cash price | Rs 150,000 |
|---|---|
| Advance | Rs 30,000 |
| Balance | Rs 120,000 |
| Markup 20% on the balance | Rs 24,000 |
| Total in installments | Rs 144,000 |
| Each installment | Rs 12,000 |
| Total installment price | Rs 174,000 |
3. Apply every payment to the oldest installment first
When a customer pays, fill the oldest unpaid installment first, then the next one. If a customer owes two installments and pays one and a half, the oldest becomes fully paid and the next is half paid.
This rule keeps the arrears figure honest: you always know exactly how many installments are behind, not just how much money is outstanding. Write every receipt down with the date and the person who collected it.
4. Check what is due every week
Set a fixed day to review three lists:
- Due this week — remind these customers before the date
- Overdue — paid late or not yet paid, sorted by how many days late
- Defaulters — customers several installments behind, who need a visit and a call to the guarantor
5. Give recovery a route
If more than one person collects, split customers by area. Each recovery officer should see only the customers on his own route, and every rupee he collects should be recorded against his name the same day. At the end of the month, compare what each route was expected to bring in with what it actually collected.
6. Keep cash and bank apart
Installments arrive in cash, in the bank and through mobile wallets. Record which account each payment went into. When the month closes, your cash in hand and your bank balance should match the receipts — not just the total.
HisabMate
How HisabMate keeps installment accounts
Everything in this guide happens on its own in HisabMate, on PC and on the Android app.
- The schedule is created automatically on every installment sale
- Customer and guarantor name, phone, CNIC and address on every sale
- Chassis, engine, IMEI and serial numbers saved and searchable
- Payments fill the oldest unpaid installment first
- Due, overdue, arrears and defaulter lists always ready
- Recovery officers see only their own routes
- Every payment records the cash, bank or wallet account it went into
Questions
Should markup be charged on the full price or on the balance?
On the balance after the advance is the common and fairer method: the customer pays markup only on the money still owed.
What should I do when a customer misses an installment?
Call within a few days of the due date, record the promise to pay, and involve the guarantor once two installments are missed.
How often should I review overdue installments?
At least once a week, on a fixed day, using due, overdue and defaulter lists.
Roman Urdu
Qist ka hisab kaise rakhein?
Sale ke din customer aur guarantor ki poori detail, schedule print karke dein, har payment sab se purani baqi qist mein lagayein, aur har hafte overdue list dekhein.
Qist ka hisab rakhne ka software?
HisabMate mein schedule khud banta hai, payment purani qist mein jati hai, aur overdue aur defaulters ki list tayar rehti hai.