Debt Management

Managing debt is one of the most confronting issues for business owners.

Particularly in tough times.

That’s why many business owners put off the task and prefer not to look at the amounts they owe!

Yet, clearly it’s something that has to be taken on and dealt with.  

Astounding as it sounds, many business owners simply don’t know how much they owe their creditors, suppliers and the tax man.

Many have a general idea of their regular expenses, like wages and rent, but after that it all gets a bit hazy.

The starting point is to look at your Aged Payables.

This should show a listing of your Trade Suppliers, assuming all invoices have been entered and it’s a complete list.

The problem is, it doesn’t show ALL of the amounts owed.

There are other amounts which are owed by most businesses which are not shown in the Accounts Payable listing, such as monthly commitments like finance payments as well.

And to be complete, it should also include amounts owing to the ATO and any Super owing. 

Current super as well as any owed from the past (for any late super go to latesuper.com.au)

Once you know the total amount owing, you can set plans to generate the income to cover these costs.

But the most important starting point is to know the total amount owing. Then the plans to generate will come.

Let me know if you need a hand.

Peter