Cash flow is a crucial element to the growth and stability of a business. It is important to ensure that you have access to such cash when you need it. Often, this cannot occur for some businesses because of existing debtors. Here are some tips to manage your debtors:

Details

Ensuring your invoices have the correct details is extremely important. By this, we mean that it contains the correct contact details for your customers. This can include:

  1. A contact name;
  2. The correct address for the customer;
  3. If works is being performed at a property or site, it doesn’t hurt to include this as well; and
  4. If your customer is a company or business, include the Australian Company Number (ACN) or Australian Business Number (ABN).

Sending

You want to be on the front foot with issuing your tax invoices. If you can send this to your customer on the same day you sell your product or provide your services, or at an absolute minimum within the same week. If your payment terms are 14 days, this could mean the difference between clients paying someone else’s invoice before yours.

Payment Options

Have a payment process that is easy for your clients to use. Take advantage of technology systems that are available to ensure an efficient way in which payment of your invoices can be attended to and finalised.

Disputes

If a customer disputes your invoice, ask them to specify if it is certain parts or the entire invoice. If it is parts of the invoice ask them to pay the non-disputed amounts, that way you are receiving some form of cash flow whilst you negotiate on the disputed aspects of the invoice.

Proactive

Be proactive about chasing your debtors and pick up the telephone. Do not be afraid to ask for payment and if a payment arrangement has been entered into make sure that you are monitoring it closely and contact your client immediately if the arrangement has not been kept.

Further Action

Be prepared to take further action for non-payment. This could be referring your customer onto senior management within your business or onto a solicitor who can assist with recovering the debt. The sooner you take such steps the easier it is to recover your money.

Review Terms

Ensure that a solicitor has reviewed your contracts so that they are legally compliant, as this will eliminate obstructions to the debt recovery process.

If you have any questions in relation to how to manage your debtors or reviewing your terms please contact one of our experienced team members at Southern Waters Legal on 9523 5535.

Even though a Will is one of the most important documents you will ever sign, current statistics show that almost one in two Australians do not have a valid Will. According to the NSW Government, 55% of Australians have a valid Will. Of the remaining 45%, some have no Will at all and others have a Will that is not up to date.

A Will is a legal document and it is a statement of your wishes that are to be executed when you pass away. When you write a Will, you appoint an executor who will oversee the processes of distributing your estate in line with your wishes.

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Tasmania is set to become home to Australia’s first purpose-built dementia village. Construction of the $25 million project is expected to commence in early 2018 in the suburb of Glenorchy in Hobart, complete with a supermarket, cinema, cafes, beauty salon, gardens, housing and other facilities all designed specifically to care for those living with the illness and run by specially trained staff.

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It’s no surprise that the Sutherland Shire is one of the most desirable places in Sydney to live but it does come at a cost. With housing prices increasing, some first home buyers have been outpriced from entering the Shire market.

As debate raged over just how much first home buyers should be spending on smashed avocado on toast, the NSW State Government announced a number of measures aimed at improving both the supply of housing and access for first home buyers to the market. These measures are to be introduced from 1 July 2017.

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There’s good news for investors nervous about purchasing property ‘off-the-plan’. Recent changes to NSW property laws will make it harder for unscrupulous developers to back out of off-the-plan contracts for residential property.

What are off-the-plan contracts?

An off-the-plan contract is a contract to buy a property which has not yet been created.  That property may be vacant land to be created on registration of a plan of subdivision (e.g., the Shearwater Landing development at Greenhills Beach), an apartment to be constructed and created on registration of a strata plan (eg. the Woolooware Bay apartments) or anything in between.

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Christmas is that wonderful time of the year when we shower our loved ones in gifts to celebrate the festive season. While it’s a joyous time for both those who are giving and receiving its important to forward think and know the ramifications associated with gifts in a Family Law and Estate Planning context, particularly substantial monetary gifts.

Let’s imagine Mr and Mrs Claus want to give one of their elves $100,000 to help he and his new elf girlfriend buy a new pad in the North Pole. It’d be important that Mr and Mrs Claus to be wary of whether they are giving the $100,000 to their elf or to both he and his girlfriend and also whether it is it in fact a gift or a loan?

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Starting a business can be hard, particularly when doing it yourself. Going into business with a partner can minimise the difficulties, particularly when the partners have complimentary skill sets. But what is the best way to structure a business partnership? How should the partnership agreement be documented?

Business Partnership

Done well, a good business partnership can lead a business towards long-term profitability, helped along by the cohesion, dedication and combined skill-sets of it’s partners. Done poorly, a partnership can lead to conflicts, inefficiencies, losses and sadly, even the destruction of friendships or marriages.

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Australians are known to love property as an investment vehicle. Generally this has been achieved by borrowing from a bank to purchase property before paying it off over time. Since 2007 self managed superannuation funds (SMSF) have been allowed to borrow money to acquire property, which has seen a large increase in the amount of SMSFs and the amount of property owned by SMSFs.

What is a SMSF?

A SMSF is a superannuation fund that has four (4) or fewer members and is an alternative to retail and employer sponsored superannuation funds. In a SMSF, the members (who are subject to strict rules) have control over the superannuation fund, its investments and decisions.

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Debt disputes arise in both personal and business relationships and can cause a great deal of stress. Here are some simple steps you can take to recover your money:

1. Check the details

The first step is to review all the information you need to start the debt recovery process.

You should confirm who the invoice is made out to, and who issued the invoice. This will allow you to determine who you need to chase for the debt (the debtor) and who the money is actually owed to (the creditor).

You should then establish exactly what goods or services you provided to the debtor and how much the debtor owes you for these goods and services.

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1. Look after your future self

Superannuation is a way to save for your retirement. When you are a Contractor or Self-Employed, Superannuation is essentially your own obligation. There is no employer squirrelling away your 9.5% for you every pay run. Treat yourself as an employee and put Super away each year to ensure you can live comfortably in retirement.

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