Tips to Improve your Accounts Receivable process for Business Owners!
Tips to Improve Accounts Receivable Process for Business Owners
Our Newcastle & Maitland Offices:-
- Newcastle Accountants & Advisors – 45 Hunter Street, Newcastle.
- Maitland Accountants & Advisors – 93 Lawes St, East Maitland.

How to contact us
- In Person: Visit our conveniently located office at 45 Hunter St, Newcastle, NSW, 2300.
- Online: Schedule a virtual appointment via Zoom or Teams for added convenience.
- Mobile Tax Services: Benefit from the flexibility of having our expert CPA Newcastle accountants come to you for tax assistance.
- Onsite Services: Enjoy personalized services delivered directly at your place of business.
At Bottrell Accounting, we’re more than just consultants and accountants; we’re your strategic financial partners. Contact us today to discover how we can help you achieve your financial goals and secure a prosperous future .
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Bottrell Accountants Main Website – www.bottrellaccounting.com.au
Accountant Newcastle – 45 Hunter St, Newcastle, NSW, 2300
Accountant Maitland – 93 Lawes St, East Maitland, NSW, 2320





Our Accounting Services
Taxation
Our experienced tax professionals at Bottrell Accounting ensure that your tax obligations are met efficiently. We also focus on maximizing your tax savings through strategic planning. Our services include:
-Personal Tax Returns: Accurate preparation and lodgement of personal income tax returns.
- Rental Property Tax Returns: Expert handling of tax matters related to rental properties.
- Business Tax Returns: Comprehensive support for business tax planning and compliance.
Bookkeeping
Maintaining organized financial records is crucial for informed decision-making. Our bookkeeping services cover:
- Bookkeeping Processing: Timely and accurate record-keeping for your business transactions.
- Bookkeeping Data Entry: Efficient data entry to keep your financial records up-to-date.
Cash Flow Management
Optimizing cash flow is essential for financial stability. Our tailored solutions include:
- Cashflow Forecast: Predictive analysis to help you manage cash flow effectively.
- 3Way Cashflow: Comprehensive insights into your inflows and outflows.
Payroll Processing
Let us handle payroll processing for you. Our services ensure accurate and timely payments to your employees while staying compliant with relevant regulations.
Financial Reporting
Financial Reporting
Gain valuable insights into your financial performance with our comprehensive reporting services:
- Company Tax Accounting: Accurate preparation of tax-related financial statements.
- Business Tax Accounting: Detailed reporting for business tax purposes.
- SMSF Tax Accounting: Specialized reporting for Self-Managed Superannuation Funds.
Financial Control Services
Our financial control services help businesses establish robust systems and controls, ensuring accuracy, transparency, and compliance.

1. Set Clear Payment Terms
- Payment Due Date: Clearly state the payment due date on your invoices, typically 30 days from the invoice date, but shorter payment terms such as 14 days may help accelerate payment.
- Early Payment Discounts: Offer incentives, such as a small discount (e.g., 2-5%), for customers who pay early. This can encourage faster payments.
- Late Payment Penalties: Clearly outline any penalties for late payments, such as interest charges or late fees, which can motivate customers to pay on time.
2. Automate Your Invoicing Process
- Use Cloud-Based Bookkeeping Software: Platforms like Xero, MYOB, and QuickBooks allow you to generate and send invoices automatically. You can schedule recurring invoices for regular clients, ensuring they’re sent on time, every time.
- Set Up Automated Reminders: Most bookkeeping software allows you to set up automatic reminders for overdue payments. This reduces the need to manually follow up with clients and keeps your cash flow moving.
- Customised Invoices: Ensure your invoices are professional, include all necessary details (such as payment terms and bank details), and clearly outline the amount due.
Accountants Newcastle – 45 Hunter St, Newcastle, NSW, 2300
Accountants Maitland – 93 Lawes St, East Maitland, NSW, 2320
3. Offer Multiple Payment Options
- Bank Transfers: Encourage customers to pay directly into your bank account by providing clear bank details on every invoice.
- Credit Card Payments: Accepting credit card payments can help speed up the payment process, especially for larger invoices.
- Online Payment Portals: Use services like PayPal, Stripe, or Square to give customers the option to pay online instantly.
- Direct Debit: For recurring customers, consider setting up direct debit arrangements to ensure regular payments are made automatically.
4. Establish a Consistent Follow-Up Process
- Friendly Reminder Emails: Set up a sequence of reminder emails through your bookkeeping software. Start with a polite reminder a few days before the due date, followed by follow-ups if the payment is overdue.
- Phone Call Follow-Up: If email reminders don’t work, consider making a phone call to follow up on late payments. A personal call can often be more effective in getting results.
- Formal Demand for Payment: For persistently late-paying customers, consider sending a formal demand letter outlining the amount due and any applicable late fees or penalties.
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Benefit from the knowledge and expertise of our certified accountants, who excel in their respective fields.
Qualified Accountants
Our team of chartered accountants & CPA, with over a decade of experience, brings a deep understanding of East Maitland's business landscape.
Specialist Services
Explore our specialized tax services, covering everything from individual income tax to corporate tax planning.

5. Implement Early Payment Incentives and Late Payment Penalties
- Offer a discount for payments made before the due date, such as 2-3% off the total amount.
- Provide additional value-added services or rewards for customers who consistently pay on time.
- Charge a late fee for overdue invoices, either as a flat fee or as a percentage of the total invoice amount (e.g., 5% for payments more than 30 days late).
- Clearly outline these penalties in your initial agreement with the customer and on all invoices.
6. Monitor and Review Accounts Receivable Regularly
- Aged Receivables Report: Use your bookkeeping software to generate an aged receivables report that shows how long invoices have been outstanding. This report will help you focus your collection efforts on the oldest or largest overdue accounts.
- Cash Flow Forecasting: Review your accounts receivable regularly as part of your cash flow forecasting. Understanding when you’re expecting payments helps you plan for future expenses and manage cash flow effectively.
7. Create a Credit Policy for New Customers
- Credit Application Process: Require new customers to complete a credit application form that includes details such as business references and credit history.
- Credit Limits: Set reasonable credit limits based on the customer’s payment history and the size of their business.
- Payment Terms: Clearly outline the terms of credit, including payment deadlines and any interest charges for late payments.
8. Outsource Accounts Receivable Management
- Timely Invoicing: Professional bookkeepers ensure that invoices are sent out promptly and accurately, reducing the risk of delays.
- Consistent Follow-Up: Bookkeepers can handle follow-up communications with clients, ensuring that overdue payments are addressed consistently and professionally.
- Cash Flow Optimisation: By managing your accounts receivable effectively, a bookkeeper can help improve your business’s cash flow and reduce the risk of bad debts.
