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Debtors’ Management System Package

Australia has the “longest debtors’ days outstanding in the world”.  We are committed to assisting accountants/business advisers to assist in reducing this.

Debtors’ management is an enormous problem for the majority of small/medium enterprises in Australia.

The management of debtors is one of the most difficult tasks confronting Australian Small Business operators. In 2016 an international organisation awarded Australia the “dubious title” of having the “Longest Debtors Days Outstanding in the World”.

In an article in the “Financial Review” in February 2024 the CEO of MYOB indicated that many SMEs that MYOB had surveyed had difficulty in understanding “Fiscal Management”. Paul Robson, the CEO of MYOB indicated that a lack of understanding of Debtors’ Systems was a significant problem and was contributing to many new SME operators “hitting a wall” after six months of business activities.

This product assists accountants/business advisers to implement strategies to improve Debtors’ Management Systems, thus reducing the investment in debtors and debtors’ days outstanding and contributing to a Cashflow improvement for small/medium enterprises.

This Package Includes...

About This Product

Webinar Recording

Product Content

Everything you need: Procedure Control Form, papers, templates and the video transcript
  • Outcome of One-On-One Meetings
  • What Is Included In The Debtors' Management Evaluation?
  • Debtors’ Management System - Introduction Checklist
  • Setting up an effective Debtors’ System
  • Being Diligent on Transactions

  • Proactive Monitoring of Debtors

  • Due Diligence Review on Debtors’ System
  • Debtors’ Management Information Strategy
  • Debtors' Discounting and Factoring
  • Debtors’ Insurance
  • Work Programme Budget Quotation Form
  • Work Programme Timetable
  • The Proposal For A Debtors' Management Evaluation
  • Assignment Control Form
  • Debtors' Management Report
  • Debtors' Management Action

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Debtors Management is an enormous problem for the majority of small/medium enterprise operators who have given credit to their customers.

The Small Business and Family Business Ombudsman recently indicated that the Australian debtors’ days outstanding is one of the highest in the world at 56.8 days.

The former Australian Prime Minister, Malcolm Turnbull had announced that the Australian government departments have been instructed to pay bills owing to SMEs within 20 calendar days of the date of the invoice.

This is great news for the small/medium enterprise community – especially for those SMEs who have dealings with federal government departments.

Hopefully big business will be able to follow this initiative of the government.

However one of the main problems is that many small/medium enterprises have not implemented appropriate debtors’ management systems nor do they regularly calculate their own “debtors’ days outstanding”.

ESS BIZTOOLS Debtors’ Management System has been designed to assist accountants/business advisors to advise your clients on the implementation of appropriate systems for the control of one of the biggest assets that most small/medium enterprises have – sundry debtors.

The ESS BIZTOOLS Debtors’ Management System assists accountants to advise SME clients on an appropriate debtors’ management system which should contribute to the lowering of debtors’ days outstanding, thus creating to an improved cashflow position for the business.

  1. QUOTATION AND PROPOSAL

Paper on Debtors’ Management.Work Programme, Budget, Quotation Form for the Debtors’ Management Evaluation Assignment.Proposal for a Debtors’ Management Evaluation Template which you can use or prepare your own.

  1. PREAMBLE

(After receiving client’s acceptance of proposal).Assignment Control Form to assist in the allocation of work to the various team members.

  1. SYSTEMS’ REVIEW (QUESTIONNAIRE)

Debtors Review Questionnaire – to enable an in-depth review of the client’s debtors system to assist in the identification of any weaknesses.

  1. BRIEFING MATERIAL (commentary mainly for accountant’s use – you could incorporate some items in your recommendations and report)
  • Debtors’ System Forms and Documents
  • A number of forms that could be utilised in the process
  • Director’s Personal Guarantee and Indemnity Form – a sample of a guarantee form
  • Debtor’s Statement Policy Form to assist in advising the client on debtors’ procedures
  • Debtors’ Monitoring – commentary on:
  • System to ensure payment
  • Account Queries
  • Overview Accounts
  • Strategies to assist being paid on time
  • Debtors’ Monitoring – commentary on:
  • Proactive management of debtors
  • Procedures for effective debtors’ management
  • Lookout for warnings
  • Successful debt management
  • Key to effective debtors’ management
  • Communication is very important
  • Hints on debtor collection
  • Introduction to Online Collection Software to assist with the management of debtors – IODM has a special offer for ESS BIZTOOLS clients
  • Debtors discounting and factoring
  • Articles which you can send to clients
  • Debtors’ Insurance – material on debtors’ insurance that is available including export insurance
  1. SYSTEMS EVALUATION (templates that you might recommend to your clients)
  • Debtors Management System Introduction Checklist – a checklist to review all aspects of the client’s debtors system.
  • Application to Open an Account (a template which you could use or edit to suit your client’s requirements)
  • Customer Application Due Diligence Checklist (a template which you could use or edit to suit your client’s requirements)
  • Approving Prospective Customer Form (enables a full record to be prepared of the due diligence review of a prospective credit customer)
  • New Customer Control Sheet (a record of the decision made relative to granting credit)
  • Welcome to New Customer Letter (a template of a letter that can be prepared for the new customer recording credit limit, terms of trade, any requirements from the customer relative to information to be included on the tax invoice, lodgement dates for tax invoices for prompt payment by the customer etc.)
  • Customer Purchase Procedures (a form to assist in advising the client on debtors’ procedures)
  1. DEBTORS MONITORING (templates to assist in the monitoring of debtors)
  • Debt Recovery Letter Template
  • Online Debt Management System – IODM (Digital Debt Management)
  • Debtors’ days outstanding Calculation Sheet – (can assist to introduce a system for your client to calculate their debtors’ days outstanding each month)
  • Debtors’ Reduction Checklist (can assist the client to implement a procedure to develop monthly targets for the reduction of amounts owing by debtors)
  1. PROTECTION AGAINST LIQUIDATOR’S PREFERENTIAL PAYMENT CLAIMS
  • Conditions of an Unfair Preference Claim (summarises the problems for businesses and highlights why businesses should register customers on the Personal Property Securities Register)
  • Personal Property Securities Register – Debtors’ notes
  • Steps to be taken by a business to protect itself against “unfair preference claims” by a liquidator
  1. DEBTORS’ REPORTING (templates to assist the accountant in the report preparation)
  • Debtors’ Management Action Plan
  • Debtors’ Management Report
FREE RESOURCES 

Accountants Minute:

  • Debtors’ Management is Very Important for SMEs (Click here)
  • Debtors’ Days Outstanding Silent Killer of Modern Business (Click here)
  • Government Action Helps – But Accountants Can Do More (Click here)

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Price: $33 (incl GST)
(12 x Monthly)
Price: $330 (incl GST)
(Yearly)
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