Outsourced year end audit collection service

A Pre and Post Year End Audit Collection Service

Credit underwriting is becoming more stringent as underwriters look for debtor books which show few signs of 'distress'. What does this mean for my business?

Simply put, if you are within 3 months of the year end it is time to review your debtor book and put in place a strategy to 'clean up' accounts which exceed credit terms and are typically 90+ days and over due.

Why is a pre-year end audit important?

Accounts on 90+ days will impact on the bad debt provision your accountant will be required to make at the year end. The financial backers of your business will want to see a tightly controlled debtor book which ultimately gives them confidence against which to extend financing facilities.

Collection or non-collection of these accounts may identify potential weaknesses in the business which you were unaware of, for example:

  • Do we have a credit control/credit underwriting problem?
  • Why are these accounts not being paid to terms - is it the market sector we sell into?
  • Are we being taken advantage of?

Case Study - Outsourcing the pre year end audit collection

  • Client experiencing cash collection problems on 90-day accounts and over and decided to take advantage of an outsourced audit collection service
  • Access Credit Management assumed collection responsibility for these accounts and successfully recovered funds to the client's account
  • Of the uncollected balance, Access Credit Management identified recurring reasons given by debtors for non-payment and identified underwriting issues at the point of sale to the Managing Director
  • Client debtor days are now realistic and no adverse audit commentary was recorded

As a result of the exercise the Managing Director changed the way the company sales team were rewarded and addressed the service levels provided to customers.

Contact us to discuss an interim solution on a pre or post year end audit basis to satisfy the requirements of your business.

Call us today or complete our contact form.

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