Leading credit reporting bureau, CreditorWatch has rolled out its End of Financial Year (EOFY) Survival Guide – a step-by-step toolkit allowing business owners to understand the financial health of their business, as well as those they trade with.
There are several key questions businesses must answer and preventative measures that should be implemented ahead of June 30:
- Are your supplier contracts up to date?
- Is your supplier database all up to date?
- Have you been through the Know Your Customer (KYC) process?
- Do you have alerts set up to keep up to date on your customer’s activity?
- Are you keeping an eye on your customer payment times compared to the market average?
- Are you ensuring you’re paying all of your customers on time?
- Have you taken out PPSR?
- Are your customers paying you later than other suppliers?
- What is the average repayment time in your industry?
CreditorWatch CEO, Patrick Coghlan said, “Australian business owners have been fielding curveballs consistently over the last 24 months, so the end of the financial year is the perfect time to pause and take stock. It’s vital that small business owners use this time to analyse their business, identify opportunities or improvements, and make a strong plan for the year ahead.
“We’ve developed the EOFY Survival Guide to ensure businesses have the tools required to get their own financial health in good shape while critically assessing the financial viability of their business relationships. After an incredibly volatile period, our aim is for Australian companies to reach a place of stability, ready to tackle whatever the new financial year might throw at them.”
CreditorWatch’s DebtorLogic tool uses data to spot high-risk debtors and recognises deteriorating payment behaviours, which can help Identify the best and worst customers and stay on top of payment terms. Equally, understanding customers through the KYC product can help reduce exposure to fraud, money laundering, terrorism financing and other criminal activity.