Collecting Debts Effectively

Amanda Keetley
Finance_Credit Control

1 QUESTION FOR YOU

What is the size of your sales ledger – are you collecting your debts effectively?

2 QUOTES FROM OTHERS

  • James Lendall Basford (American Aphorist)
    “The man who never has money enough to pay his debts has too much of something else.”
  • Proverb
    “In God we trust, all others must pay cash.”

3 IDEAS FROM ME

  • Experience has shown us that by and large businesses are not effective in turning their credit sales into cash in a timely manner.
  • On Metrics: Days Sales Outstanding (DSO), is a measure of how many days it takes to turn credit sales into cash.  The lower the DSO is; the better.  DSO has a direct impact on the level of working capital available.
  • On Reporting: Ageing of the sales ledger is imperative to understanding the performance of the debtor book and knowing the level of working capital available to fund the operations of the business.

About 888X:

888X provides business advisory services focussed on productivity and growth to accelerate your business profit and resilience.

888X takes an innovative, agile and positive approach to business transformation and improvement. We are focussed on, and committed to, our client’s business success. Our expert business advice is delivered with optimism and encouragement. 888X embraces efficient, digital tools that reduce costs and increase revenue.