Seven ways businesses can reduce debtors and increase capital

SYDNEY: Every business is looking to reduce debts and free up working capital, particularly in the current economic times, but where do you start?

Accounting and payroll software company, Attaché Software, has prepared a free publication titled ‘Bullet Proof your Business: Debtors Reduction Strategies’. The company has also produced the ‘Debtors Ready Reckoner’ chart to help business owners evaluate outstanding current debtor days, and the ‘Debtors Reduction Checklist’ that addresses seven key areas where businesses can reduce debtors and improve relationships with key customers and suppliers.

Attaché is also planning to hold more than 30 seminars throughout March and April at major city and regional locations around Australia and New Zealand, as part of its ‘Debtors Reduction Strategies’ campaign.

“The Debtors Reduction Checklist — designed for use in conjunction with the Debtors Ready Reckoner chart — incorporates such topics as taking orders, invoicing, statements, account queries, overdue accounts, being proactive, plus helping your customers and suppliers,” ,” said Attaché Software managing director, Michael Rich.

“The business benefits of reducing the number of debtor days is significant and can result in such enhancements as improved cash flow, increased working capital, reduced bad debts and reduced bank interest, to name a few.

“By increasing working capital, a business can use the extra funds for practical initiatives such as reducing a bank overdraft, updating the computer system, developing new brochures, improving the website or conducting a carbon audit.”

For more information, email here.

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