- Businesses take on average 53 days to pay their debts
- Debtor ledgers 61-90 days have increased by 22%
- Debtor ledgers over 90 days have increased by 15%
Source: Dun and Bradstreet
Eighteen million hours. That’s equivalent to over two thousand years and according to Dun and Bradstreet’s latest report, it’s how many man-hours Australian businesses spend each year chasing those who owe them money. With poor management of debtors being one of the most common causes of business failure and in the current economic climate, there’s never been a more critical time for businesses to manage their cash-flow effectively and ensure their invoices are paid on time and there is money in the bank.
Dun and Bradstreet’s latest report on indebtedness to Australian business, also shows debtor days average at 53 days nationally – this is despite normal trading terms being 30 days. What’s even more alarming is that debtor ledgers of between 61- 90 days are on the rise by 22% and 90+ days are increasing by 15%.
There is help on hand in the form of debtor tracking software. Other products may automate the chasing of debtors and even warn you about the credit risk of customers before you engage in business. However most of these only do a small component of what can often be a complex debtor management cycle.
Cue IODM – an inexpensive, simple, cloud based platform that enables small and medium businesses to manage the entire receivables process simply and efficiently. Firstly, it generates two reminder letters, followed by two collection letters with a friendly SMS reminder message at each stage. If the debt still remains unpaid, you have the ability to refer the matter to a debt collection company for further action. The system has reporting, fee funding and white labelling capabilities and works on an International platform. It can also integrate into virtually all-major accounting platforms, meaning you don’t need to alter the operations of your business for the software to work effectively. Credit checks and credit insurance will also soon be released. IODM becomes your debtor management hub, helping you control all the parameters of the debtor cycle.
This allows businesses of all shapes and sizes to ‘set and forget’ their accounts receivable workflow and processes in order to keep the cash flowing. It also allows a business to focus on what it does best versus taking up valuable time and energy chasing debtors. It’s easy, simple and definitely worth trialling. After all, 18 million man hours are simply far too precious to waste.
For further information on IODM, you can launch a free trial here.