3 ways to improve YOUR collection “results”.

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3 ways to improve YOUR collection “results”.

THE FACTS:

  • *  Most legal and accounting firms have 14-day trading terms.  And it’s not uncommon for Accounting firms to have an average of 65-90 debtor days of days and for Law firms to be 100 debtor days!
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  • *  Research shows that just 38% of business invoices are paid on time.
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  • *  Over $19 billion is locked away from Australian businesses every year due to late payments (Dun & Bradstreet).
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  • *  Poor cash flow is responsible for 90% of SME failures. 

 

HOW TO IMPROVE RESULTS:

  1. 1   Know your Days Sales Outstanding – DSO. This measures how quickly cash is being collected from debtors.  This LinkedIn article explains how to do this.
  2.  
  3. 2   Take a completely fresh look at the Debtors Ledger.  This Blog Post explains how to categorise all accounts and how to deal with each category including wording to use in ‘reminders’.
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  5. 3   Outsource some or all collection work.  This page explains more.
By | 2020-02-10T06:48:51+00:00 February 10th, 2020|Uncategorized|0 Comments

About the Author:

Have you ever wondered why a client does business with you and then ignores your invoice like they had no intention of paying it in the first place or they treat you like their own personal line of credit, leaving YOU dangling, waiting months for their payment? Unfortunately this situation is all too common and can even be puzzling for the most experienced business owner. If you’ve ever had to handle outstanding accounts or you are just so over non-payers, then we can help. Real-world skills, solutions, tips & strategies to get more accounts paid on time, and, most importantly, how to maintain customer goodwill while keeping YOUR cash flow in the positive. You will find the blog posts helpful but to get real results, contact us by using any of the forms on this site, by email or by phone. I’ve been involved in the management of accounts for over 30 years, heard every excuse in the book, can spot a non-payer at 20 paces. Finance Companies in the 70s (systematic, tough), professional firms in the 80s (no systems, too gentle) and, since then, just about every other sort of business you can think of. I’ve written books on the topic, spoken all over the place about it and the blog in this website is my way of “giving back”. I hope you find it helpful.

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