In the ordinary course of business, it is often inevitable that there will be a need to recover outstanding accounts receivable.

It is therefore important to implement strategies across the business which minimise the risk of recovery action being needed and maximise the prospects of success when recovery action becomes necessary.

Effective accounts receivable management starts with the first contact with a client. Every business needs to know their clients. Far too often, sales people sign up new accounts without obtaining the correct client information.

Is the new client a registered business name or a company? Is it registered correctly in the relevant jurisdiction? Has the new client provided sufficient information so you can determine if they are insolvent? Have they signed a contract? Are new client procedures being followed? Are these procedures adequate or out of date?

Obtaining the correct information at the commencement of a business relationship will help management determine whether the business should take on the client and the credit terms which should apply to them. It will also make recovery action far simpler should that become necessary in the future.

Even if the client information is correct at the time the business relationship commences, it should be periodically updated. Clients change address and change key management and credit employees. By adopting an appropriate periodic review, businesses can ensure they have the correct client information should recovery action become necessary.

Many of the problems associated with the recovery of accounts receivable can be traced back to the initial contracting or the failure to keep client information up to date.

Extra time spent getting the correct client details and a contract correctly signed can pave the way to easier enforcement of amounts owed and less wriggle room for debtors to evade payment.

PELEN

December 2016

Accounts Receivable - PDF Version

The content of this publication is intended to provide a general overview on matters which may be of interest. It is not intended to be comprehensive. It does not constitute advice in relation to particular circumstances nor does it constitute the provision of legal services, legal advice or financial product advice.

What Landlords Need To Know

From 1 January 2017, new rules for smoke alarms come into force in Queensland.

Landlords need to be aware of these changes. There are two key dates for smoke alarm upgrades – 1 January 2017 and 1 January 2022.

For existing dwellings, when replacing smoke alarms after 1 January 2017, photoelectric smoke alarms must be used. The existing requirements for testing smoke alarms prior to the commencement of a tenancy or any tenancy renewal remain.

More detailed rules apply from 1 January 2022. For any new or renewed tenancy, interconnected smoke alarms must be installed in each bedroom and hallway. Smoke alarms must be photoelectric, less than ten years old and not also contain an ionisation sensor. Smoke alarms must be hardwired or powered by a non-removable ten year battery.

Separate rules apply from 1 January 2017 to new dwellings and where dwellings are substantially renovated. Among other things, smoke alarms must be hardwired to the mains power supply with a secondary power source such as a battery.

A dwelling is considered to be substantially renovated if the building work is carried out under a building development approval for alterations to an existing building and the alterations (and any other approved or completed structural alterations in the past three years) represent more than half of the volume of the existing building.

Landlords of Queensland properties should audit their smoke alarms to ensure they remain up to date and comply with the new requirements.

Further details on the smoke alarm changes can be found here – QFES – Smoke Alarms.

PELEN

December 2016