Through experience, business owners and operators become naturally attuned to the peaks and flows of the economy. However, when the livelihood of your workers and your family are at stake, it is too great a risk to place complete trust in gut instinct.
So how do business owners and operators plan for and recognise times of growth and recession?
Despite its dense and often complex background, successful businesses will follow the macro “financial cycle” of their environment to inform business decisions and avoid glaring pitfalls.
What is a financial cycle?
Also referred to as business cycles, financial cycles map out the rises and falls …
Every company had debtors, people who owe them money, the last thing we want is for a client to go under or be deemed unable to pay. If a client is going under we should be able to identify if they are and be able to prepare a plan to tackle this. What are the warning signs of a client going under?
Warning Signs of A Business Going Under
Business’s that cut their dividends are experiencing tough times. They may just be experiencing a rough patch but if they are looking to boost revenue …
Increases in late payments of invoices, dishonoured payments and post-dated cheques are all indicators that a debtor may be experiencing financial hardship or possibly headed for insolvency (if they are not there already).
Once a person or company is declared insolvent, their creditors must go through the process of proving their debt in the bankruptcy or liquidation, in order to recover any outstanding monies owed to them and typically only recover a fraction of what they were owed.
So what is a creditor to do? The first inclination of many is to quickly and aggressively recover whatever they …
The small claims procedure is one of the many ways a business or sole trader can recoup money owed through a legally enforceable transaction of goods or services.
Small claims procedure is effective for cases where the:
Claim is for less than $10,000* (*applies to NSW only)
Entitlement being claimed is covered under Australian workplace laws, and the
Statutory time limit has not expired (usually six years from when …
There’s an old adage in the debt collection business that goes a little something like this, “The longer a debt is left outstanding, the harder it is to collect” and never a truer statement has been spoken.
You place your debtors in the “Too hard” pile for difficult collections? What about your final notices, they are ignored? Or your staff spend all the time to improve their debt collection skills instead to generate new revenue? More than these relevant facts, you pay interest on money that is outstanding?
One of the biggest mistakes business owners make is to put off hiring a …