24
Sep

Country Accountancy Practice

Original Situation

  • Small Accounting Practice, one branch, two partners, small country town.
  • Partners reluctant to chase clients due to very close personal, social and working relationships.
  • Existing staff unskilled in both collection techniques and skills and not very keen to be involved.
  • Practice suffering cash flow problems due to local drought, clients with poor cash-flow as well as having no effective collection procedure in place.
  • Several long-standing clients with large overdue accounts, many with small balances.

Results after three months

  • Overdue accounts (60d and 90d+) reduced by 32%. It has remained at the lower level.
  • Time saved – Staff and Partners now spend considerably less time actioning or worrying about overdue accounts.
  • A cost-effective accounts receivable system was created and is now being run off-premises and debtors are not aware that any “outside body” is involved in the account collection process.
  • OPS Global now perform the entire Credit Management function for the practice - including generation of reminder letters, making phone calls, sending emails and reporting all feedback in a timely manner.
  • More control – Management are now aware of exactly what is happening to the cash-flow in the practice.
  • Less Client confusion – Payment of Fees is discussed with all new Clients during their Initial Appointment. (Clients are now contacting the practice if unable to pay on time!)