SME Operators – Accountants can Help you with Debtors’ Management

Do you know that, in survey after survey over the last 15 years, you and your peers have identified that small/medium enterprises want to receive additional commercial services?

One of the services that would benefit most small/medium enterprises is assistance with debtors’ management.

Accountants/advisors who are offering business advisory services, other than taxation, can assist you to manage your debtors.

At ESS Small Business, we provide a debtors’ management service that many accountants/advisors use, to provide specialised advice to small/medium enterprises. These services will help you:

• Identify ways to welcome your new customers but ensure that, first of all, you’ve undertaken appropriate due diligence reviews on your potential new customer.
• Identify ways to reduce debtors’ days outstanding – an area where a lot of money can be tied up in your business.
• Improve debtors collections.
• Provide a debtors’ reduction checklist to help with the identification of particular debtors that needed to be approached for above normal payments to be made by them.
• Identify one of the key business risk areas for small/medium enterprises, which is the PPSR and how it operates. The PPSR does affect debtors and you can receive liquidators preferential payment claim letters. A way of significantly reducing this is to implement an appropriate PPSR strategy in your debtors’ system.
• Have a written debtors’ system for your business.

In fact, the SME Debtors’ System Manual, developed by ESS Small Business, gives you a customisable manual that will suit your business requirements, to assist a person who has the difficult job of managing debtors within any small/medium enterprise. The manual will also help to keep debtors’ days outstanding to a reasonable figure, which will benefit your cashflow.