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Credit Matters
What's New At Credit Matters?

What's New At Credit Matters?

Currently, I am between a number of assignments and have time available to assist if required. Therefore, I am open to additional business, whether that be a review of your credit and accounts receivable operations or picking up the telephone and calling your customers about unpaid invoices.

Tenure and rates are always negotiable.

The attachment with this newsletter is from RSM regarding their workshops on the 2023 CFE Exam Review Courses.

Kim is available to help with your questions and concerns if you need any assistance, and as always, the first chat is always free of charge or obligation.

Quote Of The Month

Quote Of The Month

“Data is the pollution problem of the information age.”

Bruce Scheier

Monthly Business Observation

Monthly Business Observation

Today, we are swamped by the amount of date which is available. Not all of this data is valuable. We also know that much of this data adds little value to our business operations, and some of it is fundamentally misleading. In addition, due to the accounting and business systems available today, we can also produce an endless number of reports, which further adds to our problems.

Hence the very valid words quoted in our newsletter this month. In trying to work through all the data and reports which assail us these days, the question is: “How do we identify which data and reports are of value and provide accurate representations of our business’s operations?”

Obviously, the answers in this newsletter to the above question are by necessity brief, however they do provide a clear picture of how to start to answer the above question. The information on the following statements and reports are from the perspectives of credit management, risk management, fraud control and customer service.

The bank statement is the first and most important report. After all, it shows the amount of cash which is available to operate the business. It cannot, nor should it, show what further cash may come into the business, or what might need to be paid in future.

The second most important report, is the balance in the Debtors Ledger, providing the value of the uncollectable invoices and invoices with extended payment terms removed. If you don’t understand the reasons for this action, then perhaps we should have a chat.

The third most important report is the Creditors Ledger, with the proviso that all “known dollars” owed are included.

The fourth most important reports, both are extremely important, are the properly structured reconciliation statements of all debtor and creditor accounts. Prepared properly, these reports clearly show the strengths and weaknesses of your business and allows you to focus on any identified problem areas. All other reports such as open item statements, merely show a list of uncharacterised outstanding items, and are fairly useless in identifying problems from a risk management perspective.

Whilst the above statements and reports do not show all aspects of the business, they offer insights into the business’s operations and performance and start to cut through the amount of data pollution we all suffer.

Monthly Business Conundrum

There is no doubt a properly worded and designed contract and terms of trade, that has been signed off properly by the customer, is an asset for your organisation.

Unfortunately, too many businesspeople fail to appreciate its value and use this asset to protect their business’s interests. Often, businesspeople and employees with vested interests within the business fail to enforce the business’s rights keep putting forward the rationale “… that legal action is just throwing good money after bad.”

In reality, this philosophy is the root cause of why so many businesses continue to lose money to fraudulent and non-paying customers. The fact is today, many customers have now realised that the majority of situations that their suppliers will not take legal action. Alternatively, if the customer has developed a non-paying strategy, the supplier will accept a lower payment just to clear the debt from their books.

The argument about throwing good money after bad however, has an element of truth as creditor rights have been gradually stripped away over the years because of mounting costs, some of which have been enforced by the courts, public bureaucrats, and the rise of the entitlement generation.

Off course, inappropriate actions of the creditors themselves have not helped their cause.

At the end of the day, it appears too often creditors have not been prepared to fight for their rights, especially those which have the appropriate contracts and terms of trade signed off by the customer. In such circumstances, creditors cannot therefore blame their customers for taking advantage of them.

If the above situation has occurred over the good times, imagine how effective debtors will be avoiding their responsibilities in the future as economic times become more difficult.

Monthly Business Conundrum
This Month's Business Inconvenient Truth

This Month's Business Inconvenient Truth

Too often we see reports and news in the media, that business factors are beginning to resemble those of 2019 and pre COVID. What does this information really offer from a sense of reality to our current circumstances? Whist it may give some people a level of comfort, in regards to the economic conditions of each period, it is like comparing apples to onions. It is therefore largely valueless in the scheme of things.

The economic circumstances of that time, debt owed and owing, human perceptions and experiences, plus government and bureaucratic interference were all vastly different. As a result, to expect that because sales figures may be rebounding to the 2019 period, businesses could now believe the worst is over is blatantly false.

It would be wise therefore to take care moving forward in 2023 and beyond, to plan and operate your business based on the current and projected future realities.

Tradies protection strategies and understanding of business principles.

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Credit Matters is a financial risk management resource centre for the Australian business community. If you are in business, Credit Matters is your ideal source of financial risk management solutions.

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Future Opportunities & Possibilities

Credit Matters is continuing to grow and provide marketing and knowledge about financial risks to the Australia business community.

Futhermore, we invite marketing and knowledge ideas from our readers and contributors on how we can assist our respective firms grow. If you have any ideas, please contact me at

If you are interested in finding new ways to reach your marketplace, why not try Credit Matters. Our prices for advertising are very reasonable and advertising packages are on offer to make any cost, even more affordable. So if you are interested in reaching your customers at the right price, please contact Kim at for options.