An article I wrote recently, was published by the A.I.C.M. titled “Can you afford not to employ a professional credit manager?” They have kindly made a copy of the article available for our subscribers which is attached to this newsletter.
Employing a properly qualified and professional Credit Manager has never been more important than in today’s business environment. If you would like to find out more or wish to access professional training for your credit management or accounts receivable employees, contact the A.I.C.M. You may also wish to send your credit management employees to the A.I.C.M.’s National Credit Conference in Melbourne in October, brochure attached.
Attached is a brochure from The Australian Small Business and Family Enterprise Ombudsman regarding the independent review of supplier code by the Australian Business Council. Perhaps it may be of value to see if by participating in the review it will help your business get paid quicker.
If you are interested in advertising with Credit Matters, please contact Kim and see what he can do for you. You will be surprised at the very reasonably priced packages which can be arranged to promote your business.
“If you lose money for the firm I will be understanding. If you lose reputation I will be ruthless.”
There are two important business aspects to this month’s quote of the month.The first aspect is the possible loss of money and the second is reputation.
In talking about losing money, we are not talking about the loss of money through stupidity, bad operating processes, bad management, a refusal to learn from experience or fraud. We are talking about the losses which come about by taking well thought out strategies which do not work out as intended or when extending credit.
The realities of business are; not everything we strive for will work out. At times, our efforts may cause a loss to the business. If we have done our homework properly however, there is much to learn from these failures. It is these situations in which Warren Buffet’s quote refers to and is so important for all business managers to understand.
The issue with reputation however, is the crux of all long-term business success. Your reputation is worth dollars in the bank. As we also well know, your reputation is so easy to lose and so hard to restore.
The parties which most value your business’s reputation are your financiers, suppliers, customers, the general public, and equally important, your employees. Each party in their own way will work with your business for mutual benefit when your business has a good reputation.
When your business has a bad reputation, each of the aforementioned parties will only work with your business, if they believe they can make money out of the relationship, irrespective of the benefit to your business.
At the end of the day, a business with a poor reputation rarely survives over the long term or maximises its profit potential. A business with a good reputation however, is likely to survive over the long-term, even when business circumstances are poor. In the good times however, these same businesses are more than likely will be able to maximise its profits.
This month’s quote from Warren Buffet contains two important aspects of business. The first is the possible loss of money and the second is reputation. Losing money is never good, however it can be tolerated to some degree if a business lesson is learnt. Reputation loss however, is never excusable.
Is it better to save money by working short-staffed or to save money across the business by employing enough people to get the work done right the first time and in a timely manner?
By working short-staffed and “harder and meaner”, you can easily identify what you are spending. What you cannot measure are the increased expenses because of tired or disenfranchised employees, lost profits by working inefficiently, lost sales and loss of your organisation’s reputation.
If you resource your business with enough employees, they are generally happier and work smarter. In addition, by working efficiently, you are not wasting time and money to fix unnecessary problems. Finally, and equally important, having a reputation for organisation efficiency, helps to increase your sales reputation.
As always, there are no simple answers. However, experience shows happy staff and increased operational efficiency leads to increased sales, profits and enhanced reputation for doing things right the first time.
The supplier’s credit manager or accounts receivable employees making contact, is helping the customer protect their credit and payment reputation.
When a supplier’s credit manager or accounts receivable employee makes contact for outstanding invoices, the supplier is in fact helping the customer protect their business’s credit and payment reputation.
All businesses buying on credit may occasionally fall behind in their payments. Many of the reasons are inadvertent and without any intention to delay the payment of the supplier’s invoices.
When contact is made by the supplier’s credit or accounts receivable employees, it is essential the customer has a policy of responding positively to these contacts. Projecting the image that the customer is respectful of the suppliers’ payment requirements is extremely important.
At no time in recent history has the need to protect your business’s payment and credit reputation been more important. There are two reasons for protecting your business’s reputation.
First, there are no secrets anymore and a poor payment history soon becomes known.
Second, the indications are that we are operating in a pre-recession period. The last thing you need is a poor credit and payment reputation when the recession is finally a fact of life.
Ensuring your business responds positively to all supplier contacts is therefore one way you can protect your business’s payment and credit reputation.
Is the spelling driver’s licence, drivers’ licence, drivers licence, or driver licence?
Sometimes it’s almost impossible to work out what the correct place an apostrophe should be, or even if it should be used.
Before we answer the above question, let’s first look at visitors book. The visitors book doesn’t belong to a visitor, so there is no possessive apostrophe. In a similar way a licence is a document we acquire when we pass a driving test.
If you visit the VicRoads site you won’t find an apostrophe in drivers licence where it’s used, but more often than not you’ll find driver licence, or licence. However, if you scan the internet you’ll find driver’s licence, drivers licence, driver licence and driving licence. In SA the government site uses driver’s licence. In NSW the government site uses driver licence. In QLD, often licence is used by itself and less often, driver licence.
By not using an ’s’ on the end of driver, the VIC, NSW and QLD government sites avoid the issue with the apostrophe.
In general the spelling should be driver licence without the s and apostrophe, however, often we need to conform to the standards of others. Depending on the state you’re in, you’ll most likely need to check the state’s governing body to see the preferred use or not, of the apostrophe. Alternately, it may be possible rewrite your sentence so no apostrophe is required.
12 July 2018
If you’re interested in computer games, or know someone that is, you’ve probably heard of loot boxes, an increasingly common feature of computer games which has also been drawing increasing criticism and regulatory attention of late.
By Ray Marshall
12 September 2018
Preferential drug supply arrangements at patent’s end found not to amount to misuse of market power or exclusive dealing
On 25 May 2018 the Full Federal Court dismissed an appeal by the ACCC and confirmed that Pfizer had not engaged in misuse of market power or exclusive dealing (within sections 46 and 47 of the Competition and Consumer Act 2010)1 in offering to enter into preferential direct supply arrangements with community pharmacies in early 2012 in respect of the supply of Lipitor (the commercial embodiment of its patent) and its own generic drug (atorvastatin Pfizer). This was in circumstances where its Australian Patent No 601981 (the atorvastatin patent) was due to expire in May 2012. Lipitor was a particular type of statin which reduced the production of cholesterol in humans, thereby lowering the risk of cardiovascular disease including stroke.
By Neil Sadler
The value of team building
There has been a number of articles lately on the value of your business team. Building your team up will not only encourage collaboration, but will ensure you get the best out of your workforce. Through a series of team bonding exercises that are motivational and exciting, it can help build communication skills, problem-solving skills and conflict resolution. Here are some reasons why it is important to build your team up to last.
Team building will encourage networking and socialisation skills. This ensures that team members are comfortable with each other and increases productivity and moral. Colleagues will be more inclined to collaborate and support each other to solve workplace issues.
Teamwork and Team Performance
Team building through bonding activities helps improve the quality of workplace projects. Through this, colleagues are able to understand the strengths and weaknesses of the individual team members. In turn, this ultimately helps them work together more efficiently.
Building your team up to encourage healthy competition is also important. When done properly, the encouragement of healthy competition between team members helps to increase morale and improves the quality of workplace work.
We’re here to help! Contact Trace Personnel on 9218 5466 for all your recruiting needs!
Updates courtesy of www.asic.gov.au
24 August 2018
Allan Raad of Wentworthville, NSW and his brother-in-law Yousef Joseph Bazouni of Sandringham, NSW, have been convicted and sentenced in the Downing Centre District Court after pleading guilty to ASIC charges concerning a breach of director’s duties and the fraudulent removal of company assets.
29 August 2018
ASIC has accepted a court enforceable undertaking (CEU) from Brisbane-based registered liquidator, Mr Peter Dinoris, of Artemis Insolvency.
The CEU requires Mr Dinoris to engage a suitably qualified independent quality reviewer to undertake a review of four external administrations selected by ASIC. The reviewer must assess Mr Dinoris’ compliance with his duties regarding investigations and contact with directors and produce a report of his/her findings to ASIC.
31 August 2018
ASIC has commenced proceedings in the Federal Court of Australia in Brisbane against Rent 2 Own Cars Australia Pty Ltd (R2O Cars), Timothy Roberts (Mr Roberts) and Paul Green (Mr Green), directors of R2O Cars, for breaching key requirements under the National Credit Code.
The alleged breaches caused customers of R2O Cars to be charged amounts in excess of the maximums allowed under the credit legislation.
06 September 2018
Mr Paul Joshua Flackmorr of Mundoolum, Queensland, a former director of Mega Energy Gas Pty Ltd has been convicted for failing to assist ASIC in an investigation.
Mr Flackmorr failed to attend a formal examination in Brisbane on Friday 12 May 2017 and provide ASIC with assistance in response to ASIC issuing a notice under s19 of the Australian Securities and Investments Commission Act (ASIC Act). Mr Flackmoor’s examination related to Mr Flackmorr’s involvement with Adam John Copping, who ASIC successfully prosecuted, resulting in a conviction for fraudulently removing company property (refer: 18-227MR).
13 September 2018
The Administrative Appeals Tribunal (AAT) has upheld the decision of ASIC to ban former Perth financial adviser Mr Jason Sean Atkins from providing financial services for three years (refer: 17-241MR).
Mr Atkins provided advice to clients to establish a self-managed superannuation fund (SMSF) and use limited recourse borrowing arrangements to fund the purchase of real property. ASIC found that Mr Atkins had not acted in the best interest of his clients when giving this advice. ASIC was concerned that Mr Atkins did not investigate or consider whether the strategy of investing in property through an SMSF would outperform his clients’ existing superannuation fund and improve their retirement position.
theBankDoctor offers free banking and finance advice to help small business owners get the best business banking set-up.
02 August 2018
The ABA has just released its new and improved Code of Banking Practice, the fourth version since 1993. But bank behaviour has not improved over this time which lends weight to the view these codes are not worth the paper they are written on. So it would be understandable, but unfortunate, if SMEs thought this new code wont make any difference to them
Its important to note the new code is not in response to the goings on at the Royal Commission. In fact, in 2016 the Australian Bankers Association commissioned an independent expert, Philip Khoury, to undertake a review of the 2013 code. In his February 2017 report, Mr Khoury made 99 recommendations and since that time, the ABA has been engaged in protracted negotiations with various stakeholders including ASIC in order to agree on the contents of the new code.
27 August 2018
Terrorism financing and the illegal movement of money through the Indo-Pacific just got harder with the commencement of the first regional Financial Intelligence Analyst Course (FIAC) in Brunei today.
First developed by AUSTRAC in early 2017, the FIAC will better equip financial intelligence analysts from across our region to work collectively to prevent, detect and disrupt financial crime.
FIAC is the first formal financial intelligence analysis course available in the region. At the ASEAN-Australia Special Summit in March, Australia and ASEAN agreed to cooperate more closely to fight terrorism and counter violent extremism in the region. As a result, the Department of Foreign Affairs and Trade has funded four regional FIACs to be delivered over the next two years.
09 August 2018
AUSTRAC’S webinar on suspicious matter reporting and digital currency exchange provider information is now available.
03 September 2018
The AUSTRAC corporate plan 2018-22 is now available. It outlines how we will achieve our purpose to build resilience in the financial system and use financial intelligence and regulation to disrupt money laundering, terrorism financing and other serious crime.
Access the AUSTRAC corporate plan 2018-22.
17 September 2018
AUSTRAC will be hosting the 25th Egmont Group Plenary (the Plenary) meeting from 24-27 September 2018 in Sydney.
The Egmont Group is a body made up of 155 financial intelligence units (FIUs) from around the world. It facilitates the exchange of financial intelligence, expertise and capability to combat money laundering, terrorism financing and serious financial crime.
The Plenary event brings together the Heads of FIUs to make operational decisions based on the recommendations of the Egmont Committee and Working Groups. The Plenary represents an opportunity to further strengthen the relationships and intelligence sharing between FIUs around the world and expand the Egmont Group network still further.
21 September 2018
IBAC's annual report 2017/18 provides information on our progress to achieving our vision of a corruption resistant Victoria. It reports on our operational and financial performance, highlights key challenges and achievements, and looks at how we will continue to expose and prevent corruption and misconduct in the year ahead
14 August 2018
A new research report by Victoria’s anti-corruption agency, IBAC, identifies a range of corruption risks associated with employment and recruitment practices across the Victorian public sector. These include recruitment being compromised by nepotism or poorly managed conflicts of interest, as well as inadequate pre-employment screening failing to detect falsified information in candidate’s applications.
The IBAC report Corruption and misconduct risks associated with employment practices in the Victorian public sector identifies corruption risks that can occur throughout the employment lifecycle, from recruitment through to an employee leaving the public sector.
22 August 2018
Victoria's independent anti-corruption and police oversight Commission, IBAC, today welcomed the appointment of Ms Kathryn Miller as Deputy Commissioner.
Ms Miller has extensive experience as a government lawyer in Victoria and for the Commonwealth, and is a past President of the Law Institute of Victoria. She is currently Executive Director, Legal Practice, at Victoria Legal Aid.
21 September 2018
Victoria's independent anti-corruption commission commenced 27 investigations and completed 14 investigations (including preliminary inquiries), including two major operations, Tone and Lansdowne, that exposed serious corruption in Victoria's public sector.
IBAC also received and assessed more than 6200 allegations of suspected public sector corruption and police misconduct, a 26 per cent increase on last financial year.
31 August 2018
31 August 2018
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These Guidelines set out how the ACCC currently proposes to interpret s. 46 and describe the general approach the ACCC will take in investigating alleged contraventions of s. 46. They include a number of practical examples of the types of conduct that in the ACCC’s view will be likely or unlikely to contravene s. 46.
03 September 2018
For any consumer, this is a major—and exciting—purchase. If something goes wrong with your new car, you may be entitled to a remedy under the consumer guarantees as well as the manufacturer's warranty or any extended warranty you might have.
This fact sheet should be given to you by the supplier (e.g. the dealer) at the point of sale when buying a new car. You can refer back to the information in this fact sheet in case you experience a problem later.
16 August 2018
Twenty-one Australian Football League (AFL) and National Rugby League (NRL) clubs have made changes to their returns and refunds policies in relation to merchandise sales following an investigation by the ACCC.
“The changes made by the AFL and NRL clubs in question follow a review of returns and refunds policies of various professional sporting clubs nationwide to check they were compliant with the Australian Consumer Law,” ACCC Chair Rod Sims said.
From at least April 2018, 21 AFL and NRL clubs made claims in their returns and refunds policies which the ACCC considered were misleading, including that items must be unworn, purchased at full price and returned within a specified timeframe to qualify for a remedy.
However, under the Australian Consumer Law (ACL), rights to a remedy are not limited to a specific time period, nor are discounted items or used products excluded from the consumer law guarantees.
Some of the AFL and NRL clubs also told consumers they had to provide the original proof of purchase when seeking a remedy. In fact, the ACL does not mandate an original receipt be presented by consumers when exercising their rights.
27 August 2018
Scammers are increasingly catching out people by impersonating well-known businesses or the police so they can get access to computers and steal money or banking information.
The ACCC’s Scamwatch website has recorded a significant spike in these types of scams, known as remote access scams, with more than 8000 reports recorded in 2018 so far and losses totalling $4.4 million.
“The spike in remote access scams is very concerning; losses so far in 2018 have already surpassed those for the whole of 2017, and sadly it is older Australians that are losing the most money,” ACCC Deputy Chair Delia Rickard said.
Scammers will impersonate a well-known company, most commonly Telstra, NBN or Microsoft, or even the police, and spin you a very credible and believable story about why they need to access your computer using software such as TeamViewer.
29 August 2018
The ACCC has accepted a court enforceable undertaking from Husqvarna Australia Pty Ltd after the outdoor power products subsidiary admitted it likely misled its franchisees when it stated that the Franchising Code of Conduct (FCC) did not apply to their contracts.
The ACCC took action over concerns Husqvarna’s “dealership agreements” may have contravened provisions of the FCC, and consequently section 51ACB of the Competition and Consumer Act (CCA), and made misleading representations in breach of the Australian Consumer Law (ACL).
“Husqvarna told its dealers that their dealership agreements were not franchising agreements. Husqvarna has acknowledged that this was likely to be misleading and in breach of the Australian Consumer Law,” ACCC Deputy Chair Mick Keogh said.
“If an agreement meets the definition of a franchise agreement it will be covered by the Code regardless of whether it’s referred to as a ‘franchise agreement’ or not.”
07 September 2018
The ACCC has accepted a court-enforceable undertaking from Volkswagen Group Australia (Volkswagen) to improve compliance with its consumer guarantee obligations under the Australian Consumer Law (ACL).
Volkswagen has undertaken to review past complaints, and offer refunds, replacements or repairs to customers where consumer guarantees rights were not honoured.
“We have successfully sought Volkswagen’s commitment to improve its complaints handling systems to ensure compliance with the automatic rights consumers have under the Australian Consumer Law, which cannot be excluded, restricted or modified,” ACCC Commissioner Sarah Court said.
“Today’s action ensures Volkswagen will place consumer guarantees under the Australian Consumer Law at the centre of their approach to consumer complaints, as every car manufacturer should do.”
17 September 2018
ACCC Chair Rod Sims has put telecommunications companies on notice to ensure their advertising is clear and transparent or face court action from the regulator, including much higher penalties and a warning that the ACCC may bring proceedings against executives who knowingly approve misleading advertisements.
Earlier this year the ACCC began investigating Optus, Vodafone and Telstra’s use of the term ‘unlimited’ to promote mobile data plans, concurrent with private litigation brought by Optus against Telstra in the Federal Court.
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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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 firstname.lastname@example.org.
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