Debtors Management: A Strategic Advisory Opportunity
Accountants Minute 426
A Vital Tool for Accountants: Helping SMEs Take Control of Cash Flow
Cash flow is the lifeblood of every business – yet thousands of Australian SMEs are struggling. According to the Small Business Ombudsman, financial difficulties are widespread, and one of the key contributors is poor fiscal management knowledge.
One area where these knowledge gaps become painfully clear is in debtors management.
In February 2024, Paul Robson, CEO of MYOB, wrote in the Financial Review that their survey of new business operators revealed alarming deficiencies within just six months of trading. Under the category of “Debtors Issues,” the findings included:
❌ Believing that credit terms must be offered to every customer
❌ Lacking a systemised approach to debtors management
❌ Failing to monitor and follow up overdue accounts
❌ Not recognising “Debtors Days Outstanding” as a critical KPI for business survival
The results? Bloated debtors ledgers, cash flow crises, and heightened insolvency risks.
Why This Matters for Accountants and Advisors
Accountants and advisors are perfectly placed to guide clients away from these common pitfalls. A customised Debtors Management Manual provides the systems, templates, and training required to turn chaotic receivables into disciplined processes.
Such a system not only reduces Debtors Days Outstanding – it also strengthens internal controls, embeds fiscal discipline across the leadership team, and can protect clients from devastating financial losses.
One often-overlooked tool is the Personal Property Securities Register (PPSR). Many SMEs have no idea that registering customers on the PPSR can protect them against:
❌ Non-payment of accounts
❌ Liquidator claims of preferential payments
Helping clients understand and implement PPSR registrations is a practical way accountants can add enormous value.
What’s Inside a Debtors Systems Manual
The ESS BIZTOOLS Debtors Management Manual includes practical forms, letters, and checklists that ensure your clients are equipped to take control. Highlights include:
Credit Application Form: collect the right details and assess risks upfront.
Director Guarantee Forms: safeguard credit accounts when dealing with companies.
New Customer Approval Procedures: stop clients from inheriting their competitors’ bad debtors.
Invoice Dispatch Procedures: ensure invoices contain everything the customer requires to pay promptly.
Terms of Trade & Retention of Title Agreements: protect ownership until payment is made.
Welcome to New Customer Letter: confirm credit terms while building strong customer relationships.
Debtors Days Outstanding Calculation Form: a monthly KPI report for the leadership team to track and act upon.
These tools transform debtor control from a reactive “chasing” activity into a proactive, professional system.
Keeping Debtors Under Control
Australia once earned the unenviable award for the longest Debtors Days Outstanding in the world. Successive governments have tried to legislate against late payments, but the truth is this: SMEs need systems, not sympathy.
Accountants must guide their clients to:
✅ Set clear terms of trade and enforce them
✅ Understand they are not obligated to provide credit to everyone
✅ Monitor Debtors Days Outstanding monthly (at minimum)
✅ Implement courtesy reminders before due dates to reduce late payments
This is not just good practice – it’s a survival strategy.
Join the Webinar
Join us on Wednesday 8 October at 11am AEST as we show you how to implement practical debtors management system that reduce Debtors Days Outstanding, strengthen cash flow, and protect clients from insolvency risks. Learn how to position this as a powerful advisory service and become the strategic partner your SME clients can do without.
Advisory Opportunity: Elevate Your Role
The management of debtors is more than bookkeeping – it is business-critical fiscal management. By equipping clients with functioning debtors systems, you position yourself as a true strategic partner.
That’s where the ESS BIZTOOLS Debtors Management System comes in. It provides everything your firm needs to:
✅ Train your team in debtor management advisory
✅ Deliver tailored debtor systems to clients
✅ Embed debtor control into the monthly rhythm of financial reporting
DISCOVER ESS BIZTOOLS DEBTORS MANAGEMENT SYSTEM HERE
When clients see improved cash flow, reduced risk, and stronger fiscal discipline, they will recognise your firm not just as a tax compliance provider – but as their essential business partner.
✅ Are your clients implementing functioning debtors systems?
✅ Are you equipping them with the tools to succeed?
Visit our website – www.essbiztools.com.au – to discover the detailed overview of the services provided by ESS BIZTOOLS. You are also welcome to contact us on 0418 190 181 or email .
Free Webinar by ESS BIZTOOLS
Debtors Management Tools Every SME Need
📅 Wednesday 8 October 2025 | 11am AEST
R&D Tax Incentives Explained: A Game-Changer for SMEs
📅 Wednesday 15 October 2025 | 11am AEST
Characteristics of a Well-Run Business: Building Successful SMEs
📅 Wednesday 22 October 2025 | 11am AEST
ESS BIZTOOLS Podcast
Selling advisory isn’t about luck – it’s a system.
In this Accountants Minute Podcast episode, Peter Towers reports on discussion with master sales trainer Trevor Marchant to unpack how firms can move from transactional compliance to true “key strategic partner” status. Learn the internal prep you need (team training, SME needs analysis, rhythm of reporting), how to frame value around dominant buying motives, and practical steps to confidently package, price, and sell advisory services that SMEs will say yes to – consistently.
CLICK HERE TO LISTEN TO OUR PODCAST
Listen to more Accountants Minute Podcast episodes here
Want to know more?
Visit www.essbiztools.com.au.
If you would like to have a discussion about how this concept of virtual CFO services can be supplied by Australian accounting firms please ring our Managing Director, Peter Towers, on 0418 190 181 and we will arrange a complimentary 45-minute Zoom meeting to discuss your firm’s position and to give you our advice.
We believe that this is the blueprint for the delivery of an enhanced range of services by Australian Accounting and Bookkeeping firms to assist SME businesses to add value to their businesses and to assist accountants and bookkeepers not only to attract but to retain outstanding talent who want to be involved in the delivery of “real accounting services”.
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