Growth Management Consultants

Task 4: Aged Debtor Report

As of December 31 2017

Client 120+ Days 90 Days 60 Days 30 Days Current Total

Client 1   $4,356.00        

Client 2 $2,714.00          

Client 3     $3,781.00      

             

Totals $2,714.00 $4,356.00 $3,781.00 $0.00 $0.00 $10,851

Aged Debtor Report shows that there are three clients whose payment, a total of $10,851, is
pending from long period. Debtor report shows a favorable sign for the company because there
are only three debtors whose payment is pending (Thorne, 2010). $10,851 pending amount with
sales of more than $1 million is a fraction of amount receivable.

Task Checklist (Assessor feedback)

Effectiveness of Debtor Management Process

Effective debtors’ management process is crucial for business success as liquidity in the financial
operations is important for business to meets its short term obligations. Credit control is equally
important and it is suggested that customers should be encouraged to make direct payment in
bank. New customers should be provided with fix payment terms and company should make
sure that they are stick to it. For effectively manage debtors process, constant follow up is
crucial for customer who make late payments. Make frequent visits to customers and take
commitment from them for payment. Effective management process makes sure that you
should stay top on mind of debtors’ so that they process payment for you on priority basis at the
time of payments (Thorne, 2010).

Recommendations
Although Growth Management Consultants’ Debtor Report is favorable, there are some
recommendations which should be followed for good practice Debtor Management:
 Always make provision for bad debts.
 Review credit limit regularly and do not extend credit limit
 Implement robust account receivable process
 Credit system is up to date and monitored regularly
 Have clear credit policy and payment terms (Thorne, 2010).