- May 26, 2020
- Posted by: IBA LLP
- Category: Accounting Support
Client Industry : Company engaged in call centre business
The client was engaged in the business of facilitating the sale of loan products and credit offerings from bank and financial institutions associated with the Company and also engaged in facilitating the sale of wealth management insurance product and investment products. Credit period was mutually agreed on customer to customer basis and was not uniform for all the customers. The company was facing issues in revenue collection as management was unable to get age-wise debtors report and company used to collect payments from customers without adhering credit period norms. Customers were enjoying longer credit period than agreed credit period and resulting in delayed revenue collection. The management discussed with IBA its concern so that age-wise debtors data is available to management and revenue can be timely collected.
Our Approach :
- We reviewed the existing accounting system of the company
- We implemented system of bill-wise accounting and knocking off with receipts in accounting software
- We identified existing debtors on bill-to-bill basis and linked debtors balance with bills in accounting software
- We had a discussion with the management as to what kind of ageing analysis report was required by management
- We prepared bill wise /age-wise debtors report and follow up with debtors could be started on regular basis
The client was able to get age-wise debtors report and asked its revenue collection team to collect revenue from customers as per agreed credit period and thereby resulting in improved cash flow for the company.