JMH Consulting

Much can be written about these debt ledgers, however it is important to identify firstly the critical factors.

The debt ledger effectively contains the fuel cells for a business. Simply put they hold details of customers that owe money, which when paid will form part of the cash flow into a business.

This is not rocket science, but getting it right does make a significant difference. Most organisations have two ways of customer cash generation, either via the till as a cash or card transaction or via a billing process resulting in an invoice being posted to the accounts receivable ledger which will only clear once the accounts receivable department is in possession of payment from the customer.

Debt Management

Debt Management is therefore a vital area of business activity. Being able to effectively report and measure your debt ledgers in terms of Debtor Days Calculation, monitoring the collection process, reporting debt by hierarchy and responsibility and the accurate record keeping in respect of diary notes together with other significant information, these will all go some way to ensure that the profile of your ledgers are fully understood and that control is being exerted.

Debt Funding

Should any debt funding be linked to the sales ledger as part of a factoring or Securitisation process, the condition of these debt ledgers will be a key factor against any borrowings.

Accounts Receivable Audit and Debt Review

The use of a periodic external accounts receivable or debt ledger review can prove extremely beneficial and serves to flush out any issues before they become problematic. An important task which some organisations find themselves unable to allocate the necessary time or internal resource to achieve

J & M Holland Consulting Ltd has significant experience in the area of debt ledgers, accounts receivable and debt management and would be pleased to respond to any expression of interest or enquiries made.