Does your small business have trouble with Debtors Control ?

Is your Cashflow suffering because you cannot get paid by your customers ?

Is your Office Administration more about chasing Debtors than it is about running an efficient business ?

Does your Debtors Clerk (often yourself or your partner, as the small business owner) dread the monthly (sometimes weekly)grind of ringing Debtors and trying to get them to pay their account ?

There is a better way:

Outsource your Debtors Ledger

By outsourcing your Debtors control to a Professional Debtors Service, you not only take away a huge source of time wasting and frustration in your business, but you will save money, have better cashflow and can concentrate on running a more efficient business.

Debtors Control is not always about Debt Collections.

Efficient Debtors control is about a relationship with the Debtor to find the cause of the debt being outstanding.

Hardline Debt collection, while sometimes necessary, in general alienates the Debtor from the Creditor, making it unlikely that they do future business, so now the Creditor (you) not only has a bad debt, but also has less future business.

By working with the Debtor to identify causes and possible remedies, a Professional Debtors Ledger service can maintain ongoing business between the two businesses.

When the Debtors Ledger service is also part of a Business Consultancy and Assistance company such as the Inca Group then a win-win situation can be developed, whereby the Creditor gets improved Cashflow from better Debtor control, and the Debtor gets the same, through understanding the financial implications to their supplier, assistance with running their business and with their own Debtors Ledger. The Ripple effect is obvious.

This Win Win situation is good for immediate Cashflow and long term sustainable business.

Business Relationships

Whether you have realised it yet or not, Small Business is about relationships, not about the products.
Understanding the requirements of each other and working together so that you both get what you want is what makes a good and sustainable  business relationship.

As businesses get bigger, those personal relationships are given less weight and it can become a situation of Big business trampling on Small business.
However this model is not sustainable, and the big businesses soon find they cannot get any small business suppliers, which can become a significant issue in New Zealand, bearing in mind that the large majority of businesses are small (less than 50 employees).

So if your Debtor Ledger is causing your business major problems then pass it over to a service that is made to do specifically that, so you can get on with running your own business well.

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Auckland Small Business Help

Active accounts keeping allows a business to see the real financial status of the business and thus make much better decisions.

Services that can be dealt with in house or by outsourcing include:

• GST Returns
• Accounts Payable
• Accounts Receivable
• Wages
• PAYE
• Cashflows
• Data Entry
• Assessing office systems
• Typing
• Secretarial & P A Duties
• Other administrative requirements

Most New Zealand small businesses use  MYOB or QuickBooks and some training in the use of these packages can make a big difference to office efficiency.

Professionally trained staff  providing accounting and administrative support, frees up time to be spent on core business.

Many Small Businesses require only a few hours a week with their book work and it is often done “by the Wife”.
A good accounting service will work hours to suit your requirements, and at locations to suit, at the business office or at theirs and be much more efficient at the skilled tasks, thus keeping costs to a minimum.

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Auckland Small Business Help

A service such as this from business assistance companies such as Inca Group manages your debtor ledger communication to facilitate prompt payment from your customers.

Refinements of financial reporting and debtor control combine to manage the debtors ledger in full.

Benefits:

• Improved cash flow
• Improved reporting
• Strategic support in managing debtors
• Improved communications with your clients
• Improved insight into your customers experience from your Business
• Outcomes from our communications with your clients will improve the delivery of services

Depending on your staff capabilities, some services need to be outsourced while others can be handled in-house, thus the cost will vary according to your requirements.

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Financial Communications

(Full Debtor Ledger Management)

General Section

• We have performed this outsourced service for 10 years to many various types of businesses.

• We have clients that have engaged this service for many years (oldest client is 10 years continuous engagement).

• We have a specifically developed data management system to handle client’s requirements and debt reporting.

• We have developed the procedures to ensure our clients don’t lose customers through our actions and we work with your customers to maximize cash flow.

• Part of the process is working with our client’s cash flow strategies and objectives to set critical credit paths and the processes required to attain these strategies and objectives.

• Our process ensures that we work very closely with our clients to ensure options of ledger management are fully controllable by our client, such as Holds or No contact etc.

• We will provide reports daily, whenever one of your customers is contacted or further information is gathered.

• We are dedicated to communication with our clients either by phone, fax, e-mail, or Skype messaging.

• We take great care on protecting your information so there is no cross pollination of information. (it has not happened to-date as we have heavily protect fire walls on our computer system and privacy protocols)

• We set the fees with an initial interview and in most cases we do not review rates for atleast 12 months.

• The fees cover all toll calls, mobile calls, and provide onsite calls to your customers after the strategy is discussed and approved by you at no extra expense if they are wayward paying clients.

• We will work with you as a client to ensure risks are managed through critical credit management protocols.

• The fees are paid weekly at the agreed rates.

• Our mission is to maximize cash flow through efficient communication for our clients.

• We are not Debt Collectors under the traditional sense as we don’t have fees and procedures as perceived others work with, we are specialized communicators that can undertake a range of duties but we are primarily focused on retaining your customers and getting arrears funds to meet or exceed cash flow requirements.

Why is our service so effective?

• Quality procedures to encourage wayward paying debtors to review their payment strategies ensuring more reliable cash flow to our client whilst maintaining the customer.

• We show no emotions nor do we become abrasive or demanding with our communications.

• We have options that can be offered to a wayward paying debtor such as:

I. MyCEO Services
II. Administration Services
III. Financial Communications
IV. Management Support
V. Finance

ie. we can help both you and your debtor to do Better Business.

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Auckland Small Business Help

Many Auckland Small Businesses struggle to cope with the office administration tasks required of them. From dealing with debtors and creditors to paying the wages or GST, there are many things that can go wrong that require a little training and experience.
Outsourcing office administration to qualified service providers can not only save money but can also greatly reduce business risk.
Typical administrative requirements in a small business that are available from business assistance companies such as Inca Group or through a network of associated businesses :

• Creditor control
• Debtor Control
• Account Reconciliations
• Payment processing
• Reporting
• General Typing
• Customer inquiry
• Creditor inquiry
• Management support
• Statutory reporting
• Financial analysis
• Cash Flow management

Depending on your staff capabilities, some services need to be outsourced while others can be handled in-house, thus the cost will vary according to your requirements.

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Auckland Small Business Help

Typically a small business is under resourced and does not have all the skills or experience required for running an efficient business.
Usually this is because someone with particular skills or a product or service idea has decided to try to make a business from it, so they mortgage their house to raise money to start the business.
However, typically the technical skills that should be used in developing and supporting the product or service  get consumed in looking after the day to day management of the business as there is seemingly no money to employ staff to do these tasks.
Often this ends up being false economy.

So what is a small Business to do?

Have a Business Plan

Without a plan of what it is you intend to do, how you intend to do it and what you intend to do with the results, including the Exit plan, how can the business consistently work towards the end goals, and know if it is progressing or not.

Once there is a plan, which doesn’t need to be anything elaborate, and all the stakeholders know what their part in the plan is, then everyone can begin working towards the goal.

There are many Business plan tools available. The trial version of this one may be useful to you for checking on the financial viability of your sales and business overall, plus prompt you to consider particular pars of the business you may have neglected.

One of the first things that needs to be sorted is the Exit strategy. What is the end goal and what happens when that goal is achieved.
Is it intended to build the business up for sale, or to provide ongoing income for the Principles, or run for a certain period and then close down etc. The Exit Strategy plays a big part in day to day Strategic planning.

Once there is a plan then the practicalities of who does what task can be sorted. This is where analysis of the economics of doing it yourself against outsourcing to experienced service providers comes into play.
If you can earn more by performing a skilled task that only you or a limited number of your staff can do, than it costs you to employ or outsource a lesser task, then it makes no sense for you to be doing the lesser task.  Make every task you do be working towards the end goal and if possible working towards making money.

Outsource Small Business Administration

Outsourcing parts of the business is generally the most efficient use of resources, both time and resources, including skills and money.

The difficulty is always convincing the owner or financier that it is more economically effective to pay for someone else to take care of standard parts of the business, while the unique skills within the business are used to best effect in the areas most suited.

The opportunity loss and sometimes the direct transaction loss of using a highly skilled person to do a job they may be less skilled at are hidden costs in the business, but are real just the same.
While the chargeout rate of a contractor or business service provider such as an accounts service may appear high, and are directly visible as financial transactions, the effective cost of not using the skilled staff member to carry out skilled work can be a lot higher.

What can be outsourced ?

These days, technology allows business to outsource just about every aspect of the operation and administration.

• Secretarial
• Book Keeping
• Creditor and Debtor control
• Accounting
• Skilled work by outworkers
• Skilled work by Contractors
• Operations management
• Sub contract manufacture
• Day to day management
• Executive management
• Strategic decision making
• etc

ie it is now possible to outsource the whole operation, a model that has been adopted in the on line internet marketing business.
This means that skills can be used where they are most effective at increasing the bottom line and progresssing the strategic purpose of the company.

Outsourcing Small Business Admininstration, both Management and Operations, is a viable option for most small businesses.

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Auckland Small Business Help