Credit Management Training Course

WHEN A BUSINESS FAILS it’s almost always due to cash flow problems that arise from late-paying customers, or debtors, and unpaid invoices.

But as the number of small businesses in Australia have increased in the last five years, so too have the number of closures resulting from inefficient cash flow.

An inquiry by the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) into payment times and practices in Australia has revealed that poor cash flow is the primary reason for insolvency in Australia. 

Not every business suffering cash flow problems goes insolvent right away. Many more, especially those operated by sole traders, struggle on with clients and customers who don’t pay on time or, worse, not at all.

Indeed, a recent study commissioned by PayPal and QuickBooks Intuit, found that Australian small businesses are owed a collective $26 million in unpaid invoices. That’s roughly $13,200 owed to each business at any given time, for which business owners will spend an average of 12 days chasing each year.

Perhaps 12 days out of 365 doesn’t seem like much time spent chasing invoices, but look at it this way:

The ACCC estimates that nearly three-quarters of all business invoices are paid late, while recent figures released in Dun & Bradstreet’s quarterly Trade Payments Analysis report found that businesses wait an average of 44.9 days for payment, with businesses in the ACT, NSW and WA waiting the longest: between 46 and 50.4 days.

Credit and Debt Management: From New Clients to Regular Clients

It doesn’t matter which way you paint it. Credit and debt management is one of the most overlooked aspects of operating a small business and it’s affecting the business owners who can least afford it.

Figures released by the Australian Bureau of Statistics (ABS) found that closure rates for businesses were higher among those with an annual turnover of under $50,000 than those with an annual turnover of more than $2 million.

For a small business to thrive and prosper, it must implement efficient measures to manage its debtors. Our complete guide to Credit and Debt Management Processes and Systems for Small Business will show you how to do just that, regardless of the size or type of business you operate. Our Credit and Debt Management Training Guide helps you understand how good credit and debt management principles can be applied at every stage of dealing with new clients from credit assessment, quoting and deposits, monthly management and enforcement.

NOTE: This training program is available for members of EzyLearn’s Bookkeeping Academy

Topics in this Credit Controller Training Course program

Assessment & Risk Management

These are the steps that a business can take before they agree to provide goods and services to a new or existing client. These credit risk procedures help ensure that customers pay your business according to your terms.

• Deposit Payments
• Credit Applications
• Terms of Trade
• Reservation of Title
• Liability and Warranty
• Credit Risk for Tradies

Daily and Monthly Credit Risk Management

Set your business up with the correct credit risk management procedures to ensure that you manage the daily and weekly tasks to ensure that customers pay when the money is owing.

• Quoting and Invoicing
• Payment / Credit Terms
• Accounts Receivable Reports
• Delinquency
• Late payments and Follow up
• Security

Debt Collection and Enforcement

If you’ve set up your credit risk management procedures correctly you can enforce payment correctly and ensure you get paid. If you are not paid you can get a better outcome if your customer goes into administration or receivership.

• Debt recovery process
• Value of risky debt over time
• Bad debts
• Security and Liens
• Enforcing a payment
• Litigation and Court

Online Bookkeeping Certificate Training Courses

Credit Management procedures are designed and implemented at various stages of the accounting process but most occur on a regular basis. Daily, Weekly and Monthly reports are run to ensure that high credit risk events or situations are avoided.

Learn about common bookkeeping training courses

Included in some online accounting courses

If this area of accounting studies or work interests you please make contact with a course consultant to learn more about courses or course combinations which include this training program.

Find out which courses include the Credit Controller Training Program

Here’s a Quick Intro to the Cash Conversion Cycle