This is the third of four tools developed by RSM to help smaller businesses and not-for profit organisations manage key financial aspects o their business. Any manager interested in managing an organisation’s finances should be interested in using these or similar tools.
Debtors Management: This tool helps you have a correctly structured debtor management procedure and a proper system to monitor debtor level with guidelines for the collection of payments from clients including appropriate language and messages and follow-up timing. This will be useful as a guide to good practice in managing the follow-up of upaid bills - and having oversight of their number and value.
While this and the other three tools could be used without professional assistance, we strongly recommend that in working through the input of the data and appreciating the resulting information, that organisations enlist the support of a qualified accountant or experienced book-keeper.
Indeed, while adapted to the needs of small and very small organisations to use on an on-going basis, this and the three associated tools providing financial analysis, are best used by accounting practitioners and their completion and interpretation should be supervised by someone with accounting or bookkeeping experience.