Accounts Receivable / Debtor Collection

GAIN A NEW MOTIVATION

A business is only viable if in the simplest terms it can pay its dues. No one in business likes the sinking feeling of dipping in to their personal savings, overdraft or credit cards to be able to keep their business afloat. Cash flow maintenance is one of the most important aspects of business.

When it comes to account collection also known as Accounts Receivable or Debtor Collection, we often see clients writing off amounts owing rather than follow up for payment. This may be because the owner or manager of the business is either:

  • Embarrassed to chase the payment because it has taken them a long time to cotton on to their outstanding invoices
  • Making those phone calls to late payers makes their guts churn with anxiety
  • Doesn’t want to offend the customer
  • Isn’t sure how long to wait between follow up calls

If this is happening in your business, it’s time to take action! You offer a great service, you and your team have put in the hard yards to complete this job, THAT IS WORTH SOMETHING. As much as it is a hard line to take, you are not running a charity (unless you are) you need to pay your bills, staff and overheads to put a roof over your head and food on the table of yourself and your team, you are not in business to pay the bank and the landlord.

If this is you and you want to turn your business around, it’s time to organise a chat with us!

We will look at the following aspects of your business:

  1. What are your payments terms for customers and is this reasonable for your business taking into consideration your terms for your payables
  2. Does your business discount unnecessarily and if so why
  3. What are your payment methods and how long does it take for the money to enter your bank account i.e. Bank Deposit, Cash, Direct Debit, Credit Card
  4. How long in actual fact does it take to receive the unpaid monies

    Aged Debtors Report

    Aged Debtors Report

  5. AR Screen 1What system are you using for tracking accounts receivable
  6. What procedure do you have in place for accounts receivable

From the above information we can draw a conclusion of what needs to change going forward. You may choose to update your systems and procedures which will give you the confidence in collecting payables or you may decide that you would prefer to have someone come in and be the “bad guy” for you!

Our team can provide you with everything you need to get your business back on track and most importantly give you a new motivation and passion for the direction of your business.

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Our passion is driven from the joy of helping you achieve your business goals and watching you gain control of the areas where you need that extra helping hand.

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