Mar 30, 2017
“90% of small business failures are due to poor cashflow” Ms Kate Carnell the Australian Government’s Small Business Ombudsman said recently.
“Australia has the longest debtors days outstanding in the world”. A survey of over 80 countries found that Debtors Days Outstanding in Australia was 26.4 days higher than the normal payment term of 30 days meaning that debtors' days outstanding on average are 56.4 days.
Where to Start?
Identify your clients that have debtors' days outstanding in excess of 40 days or:
Why not have a conversation with your client about the benefits of you undertaking a review of their debtors' system to ensure that it is working appropriately?