10 Ways To Reduce Your Debtors Level

You probably know that late-paying customers are costing your business money, but do you really understand the full impact? Even if you do, does everyone else in the company? Are you efficiently ensuring accounts are paid on time in a way that’s not upsetting your loyal clients?

Mike Rich from Attache Software says alarm bells should be ringing if your average debtor days is 50 percent over your trading terms. Their Business Improvement Guide includes a useful Ready Reckoner to calculate the cost to your business of an unfavourable number of outstanding debtor days. It also outlines 10 strategies for reducing those levels, which we discuss in this edition of BTalk:

  • educate staff
  • use business intelligence dashboards
  • customer and supplier relationship management
  • automate and track documents
  • reduce the reliance on paper
  • reduce errors
  • make it easy to pay
  • make follow-up a routine
  • run customer checks before shipping
  • encourage the right customer

First published on CBS News

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