June 14, 2019

Are You Your Client’s Banker?

Long gone are the are the days of the 30 day account.

Now it’s 7 days and a quick follow up as creditor to make sure that cash-flow remains king.

New tax arrangements require adherence to one touch pay-roll – money up front for the ATO and no excuses please.

Put another way, the ATO has a zero day allowance for payment of tax and superannuation obligations.

So, if the pressure is on to have the funds to pay statutory and other obligations then as an employer you need to have virtually zero day requirements for payment of your accounts.

The reality is that any payment made over zero days puts you in the position of your client’s banker. Debtors who meander on for anything over zero days are costing you money or devaluing the good work that you do for clients.

So, you need to keep onto your debtors and if they prove to be slow or indifferent payers then you need to send them a reminder letter and the mandatory ‘phone call from your accounts person.

We run a small business and we know the pressures attendant on small business operators. That’s why we’ve developed a suite of reminder letters for clients to keep on top of unpaid accounts.

You can access the suite of letters by downloading our free eBook here. It’s our contribution towards allowing you to chase up slow or defaulting payers.