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    Debtor Management Report

    Uploaded by

    imran javed
    The document is a debtor management report for Grow Management Consultants. It analyzes the company's aged debtor report, showing that client 1 owes the highest amount of $4,356 and client 2 has the longest debt cycle over 120 days. To improve cash flow, the report recommends the company adopt better billing software, standardize invoices, check credit histories, offer flexible payment options, assign collection responsibilities, set reminders for late payers, and charge interest on overdue amounts.

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    Debtor Management Report

    Uploaded by

    imran javed
    579 views1 page
    The document is a debtor management report for Grow Management Consultants. It analyzes the company's aged debtor report, showing that client 1 owes the highest amount of $4,356 and client 2 has the longest debt cycle over 120 days. To improve cash flow, the report recommends the company adopt better billing software, standardize invoices, check credit histories, offer flexible payment options, assign collection responsibilities, set reminders for late payers, and charge interest on overdue amounts.

    Original Description:

    Manage Finance BSBFIM601

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    The document is a debtor management report for Grow Management Consultants. It analyzes the company's aged debtor report, showing that client 1 owes the highest amount of $4,356 and client 2 has the longest debt cycle over 120 days. To improve cash flow, the report recommends the company adopt better billing software, standardize invoices, check credit histories, offer flexible payment options, assign collection responsibilities, set reminders for late payers, and charge interest on overdue amounts.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    579 views1 page

    Debtor Management Report

    Uploaded by

    imran javed
    The document is a debtor management report for Grow Management Consultants. It analyzes the company's aged debtor report, showing that client 1 owes the highest amount of $4,356 and client 2 has the longest debt cycle over 120 days. To improve cash flow, the report recommends the company adopt better billing software, standardize invoices, check credit histories, offer flexible payment options, assign collection responsibilities, set reminders for late payers, and charge interest on overdue amounts.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Task 4

    Debtor management report

    Purpose
    The purpose of this report is to brief CEO about best debtor management practice with the
    recommendations in current debtor management practice in grow management consultants.

    Summary
    Aged debtor report of grow management consultants shows the account receivables of the
    company. According to aged debtors report, client 1, client 2 and client 3 owe $4,356, $2,714
    and $3,781 respectively. Client 2 has longest debt circle of more than 120 days while client 3 has
    lowest debt circle of 60 days. In dollar terms, client 2 have lowest amount of $2,714 while client
    1 owes highest amount of $4,356.

    Good practice debtor management


    Debtors are the people or businesses to whom you will provide goods or services on credit. This
    will mostly happens when you provide invoices after delivering your service/goods while the
    payment will be received on later date. By doing this, you are giving favor to other business so
    that they can complete their purchases. If you do not receive payments on time then your
    business can suffer due to cash flow issues (Queensland Government, 2017). Nowadays, many
    organizations face difficulties to liquidate their receivable. They have divided debt servicing for
    each client in various number of days. Some clients will get more debt serving cycle than the
    others because of their previous debt servicing history. On the other hand, companies are striving
    to improve their cash flows. There are ways to improve debt management system like faster
    issuance of invoices, setting credit limits, enforcing clear credit policy and considering debtor
    finance. These practices are being used in various industries to tackle the cash flow issue within
    the organization. Grow management consultants can improve their debt management system by
    adopting following recommendations.

    Recommendations
     Improve the billing process by adopting File pro
     Use standard layout for invoices to avoid confusion
     Credit history check of all the debtors
     Flexible payment options for the debtors including efpos and post
     Spreading the responsibility within the organization can improve the debtor collection.
     Grow management consultants can set up multiple reminders for the older debtors and it
    can also charge interest on the pending amount.

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