Knowledge Centre
Debtor Management
Turn sales into cash by keeping customers paying on time.
1. What You Need to Know
Selling doesn’t mean anything until the money is in your account.
Debtor management is about invoicing correctly, following up promptly, and maintaining good payment discipline. Accountants help you track who owes you money, implement collection policies, and use technology to speed up payments.
2. Why It Matters to You
Strong debtor management keeps your business liquid and stress-free.
Improves cash flow by speeding up collections.
Reduces bad debts and write-offs.
Strengthens relationships with clients through clear payment terms.
Builds credibility with banks and funders.
3. Frameworks, Standards, or References
Getting paid requires both processes and legal awareness.
Frameworks to use: Age Analysis reports, Credit Control policies, Debtor Days KPI.
Standards & compliance: IFRS for SMEs (disclosure of receivables), National Credit Act (consumer/business credit rules).
References: CIBA practice standards on financial management, CPD courses on collections.
What your accountant will actually do:
Set up invoicing systems (manual or cloud-based).
Prepare monthly debtor age analysis reports.
Follow up with clients on overdue invoices.
Advise on legal escalation for non-payers.
4. How to Apply
Steps to keep your debtor book healthy:
Issue invoices promptly and accurately.
Define clear payment terms with all clients.
Review debtor age analysis every month with your accountant.
Send reminders early — before accounts become overdue.
Escalate chronic non-payers through legal channels when needed.
5. Common Mistakes to Avoid
Avoid these pitfalls that leave cash on the table:
Not invoicing on time → Bill promptly, not weeks later.
Ignoring overdue accounts → Follow up consistently.
Extending unlimited credit → Assess each client’s risk first.
Being too aggressive → Balance firmness with client relationships.