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Credit Matters
What's New At Credit Matters?

What's New At Credit Matters?

The June newsletter has been deliberately kept to a minimum content. This is due to most businesspeople being focused on preparing their end of year or end of quarter financial reports.

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

Insanity is doing the same thing over and over and expecting different results.” and “The only source of knowledge is experience.” Albert Einstein

Monthly Business Observation

Monthly Business Observation

If you look at the quotes in this month’s newsletter, you will come to appreciate their value when preparing the end of year financial reports. After all, each year we see managers rushing around trying to present the best picture in their business’s reports. It would also appear that nothing has been learnt by many from the past when preparing the end of year financials.

The fact of the matter is however, it doesn’t matter what reports you need for the end of the financial year reporting requirements, it should not be left to the last minute. If you have managed your business’s affairs properly, there should be little stress or fuss in preparing the reports in a calm and professional manner.

The problem really arises when senior management and/or business owners are trying to enhance what is often an undesirable reality that reflects badly on their current management of the business. In doing so however, what they are also doing is producing a false picture of the business where many problems are hidden. In turn, this reduces the effectiveness of their business’s future day-to-day operations.

In addition, what is also rarely acknowledged in these times, is that when stressed, it is then that the most mistakes and poor business decisions are made. These problems occur when we lose focus during these preparation period on maintaining business disciplines, and we take our eyes off the current requirements of completing profitable selling operations. For instance, the importance of completing proper due diligence, or of being wary of the last minute “special and/or unexpected sale” orders, or in maintaining great customer service, etc.

Furthermore, the manipulation of results for short-term gain, usually produces a false image of the business’s true position. As we know, this latter outcome usually comes back to bite those manipulators badly in the future. What happens is that future operations do not produce the desired results which were indicated by the manipulated figures, a situation likely to occur more frequently in these difficult times. Nowhere do we see these actions more than in presenting the best sales and debtors accounts.

For instance, sales can be brought forward, rushed orders supplied with invoices incorrectly completed or not sent in a timely manner, proper due diligence is forgone, etc. These actions are all completed in the hope of presenting increased sales figures to make managers look good and help salespeople receive their bonuses and/or keep their jobs.

In the case of debtors, there is the last-minute panic to make sure all payments are received, credit claims are not processed by sales which are looking to protect management or the sales department, hand wringing about which accounts to write off as bad debts, etc.

However, as any experienced credit professional knows, managing payments from customers and maintaining their accounts is a 12-month exercise. Sending endless emails or making constant phone calls in the last few weeks of the financial year rarely brings results commensurate with the efforts undertaken.

In addition, encouraging marketing and salespeople to authorise and process valid and outstanding credit claims is almost impossible. This is especially difficult when sales budgets are under pressure. Naturally, when credit claims are not processed when they fall due, means subsequent sale periods are then starting from a negative position. After all, these claims still need to be processed at some stage in the future.

At the end of the day, anxiety and stress is always present when preparing end of year financial figures. These issues are multiplied if proper prior planning and operations have not been completed in a timely manner during the previous months. Furthermore, if actions are not completed when they should be, or manipulation takes place to present incorrect figures, this in turn, will have additional negative consequences in the following financial months and years.

Monthly Business Conundrum

Today, the business community is crying out for employees, yet there seems to be an almost universal campaign to ignore older workers in many businesses. By employing inexperienced and unprofessional employees rather than mature-aged workers, management is exposing their businesses to potentially many profit draining outcomes.

The truth is however, generally, mature-aged workers bring many vital skills and experiences to the business. Furthermore, management has nothing to fear as these employees are mostly not interested in taking their jobs and unlike many younger employees, generally have better workplace ethics.

There is an old saying, “… you cannot put an old head on young shoulders.” The same applies to your employees. True, younger employees are not burdened by past history, and are generally thinking differently about how a business may operate. In the day-to-day affairs of managing a business however, they lack the experience of older employees.

Mature-aged employees have experience which allow them to deal more effectively with such business factors of:

  1. understanding the essential importance of superior customer service,
  2. helping customers understand and being helpful in regard to digital interactions,
  3. understanding how and why customers may have legitimate concerns about their preference to pay in cash rather than credit cards or digital payment methodologies,
  4. being comfortable in picking up the telephone to talk with customers,
  5. understanding the actions and words of fraudulent and manipulative customers, etc.

Today, many managers and business owners continue to employee younger employees rather than older employees. Why this practice continues, few people bother to properly explain this ideology. Therefore, whilst management continues to ignore the value which mature-aged employees bring to their business(s), they will continue to lose customers, increase unnecessary costs and therefore, reduce profits.

Monthly Business Conundrum
This Month's Business Inconvenient Truth

This Month's Business Inconvenient Truth

There are so many business pressures these days, that sometimes mistakes are made in a number of areas within your business. One such area is not completing proper due diligence and obtaining authorised orders properly before starting and completing work. Delivering product(s) is another area where this situation occurs.

When purchase orders or requests of any kind are not authorised properly, the fundamental problem is you have delivered a product or completed work which has not been authorised by the customer. As a result, your business is at the mercy of the customer as to whether they pay the invoice in full in a timely manner, part pay the invoice or refuse to pay it all.

You can start all the legal action you like, threaten the customer in any number of ways, including advertising the fact on social media. Irrespective of your action of choice, all that happens is that you have a costly dollar write off, or are publicly humiliated for incompetence, or increased the potential for a fraud to succeed.

In today’s business environment, there is no excuse for not having a properly prepared and signed authorisation to complete work, change existing work requirements, or when delivering goods and services. Failure to do so, is always costly, and in a low profit or reduced sales environment, such as now, not having a properly authorised purchase or work order is just another way of losing money.

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.