This Requires Good Debtors' Management (Issue 011)
Hello, I’m Peter Towers, Managing Director of ESS Small Business and ESS BIZTOOLS. Welcome to Empowering SMEs.
Company directors and committee members of organisations have a clear responsibility to protect their company’s/organisation’s assets. For many companies/organisations, debtors are a large asset.
The “management of debtors” is a key area for directors/committee members to enquire about – to satisfy themselves that appropriate systems have been implemented and that the systems are operating efficiently. Directors need to enquire about:
Australia has the dubious title of having the “longest debtors days outstanding in the world”. Unfortunately, long debtors’ days outstanding statistics can lead to significant bad debts for a company/organisation.
Directors/committee members should be closely monitoring the performance of the debtor system within their company/organisation to ensure that the system is operating efficiently and that debtors’ days outstanding is as low as possible. The monitoring could include key performance indicator reports relating to:
In the Corporate Governance Network, we have invited Dave Birch, Managing Director of smartAR and FeeLink as the keynote presenter on “Debtors Management and Collection from Debtors”.
Dave Birch has had considerable experience over a number of years in assisting accountants, lawyers and small/medium enterprise operators in Australia and New Zealand to limit their exposure to problems with debtors. One of Dave Birch’s quotes “if you have any debtors that owe multiple creditors money (more money than they have to hand) that’s the perfect client to offer fee funding. Your firm gets paid in full and your client can enjoy equal monthly payments for up to a year with very little extra cost. It’s a win- win, leaving you paid in full and then with more funds to pay other creditors”.
The Corporate Governance Network to be presented by ESS Small Business comprises 8 x 90-minute webinar/workshops during 2018/19, commencing on 25th July 2018. The team for the presentation of the Corporate Governance Network includes other experts in:
Each of these presenters will outline “truth relating to the area in which they are an expert”. The truth from today is that “a sale is not completed until you have been paid”. To find out more I invite you to logon to the ESS Small Business website and click on to the Learn More of the Corporate Governance Network.
If you visit the website and select “Library”, you will be able to have a look at some of the articles that have been developed by Dave Birch, under the headings “Cashflow Management” and “Debtors”. You are invited to participate in a Free Corporate Governance Network Preview webinar on Thursday, 12th July 2018 at 12.30pm AEST. (Click here to register for this webinar).
If you have any question on any aspect of Debtors’ Management and the collection of monies owed by debtors or the Corporate Governance Network, please do not hesitate to contact Peter – email firstname.lastname@example.org or telephone 1800 232 088.
COMPLIMENTARY MATERIAL Click on the button below to access the following FREE material:
Episode 11 - A Sale is not Completed Until You Are Paid
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