Research has shown that the average debtor days for Australian accounting firms is 53. In addition, average work-in-progress time is 24 days. This means that the average 'lock-up' is 77 days (Business Fitness, Good, Bad and Ugly of the Australian Accounting Profession, 2018).
Your team shouldn’t burn time chasing clients for late payments, so what is the solution? The answer is a robust engagement strategy which brings fees forward in your discussions with clients and makes it easier for them to pay you for the value you provide.
You can access free proposal & engagement letter templates within Practice Ignition to streamline your EOFY and make these conversations easier. Start your 14-day trial here to access these templates.
As we approach 30 June, engagements will form a critical part of your client relationship cycle - you should include fees in this discussion. A formal engagement process gives you the opportunity to properly review scope, understand whether you’ve met expectations and ensure you’re getting paid for all the value you deliver.
With Practice Ignition, your client agrees to your terms up-front in the context of your digital proposal. In addition, clients can input their payment details (credit card & direct debit) and agree to your payments schedule - Practice Ignition will manage all the collections and invoicing, without you even lifting a finger! Accountants who have implemented Practice Ignition have seen reductions in debtors of up to $380,000 in a matter of months. You can read more about it here.
Pay no transaction fees this EOFY
There’s never been a better time to eliminate debtors by setting up client engagements with online payment collection in Practice Ignition. You’ll pay zero transaction fees on client payment processing through Practice Ignition between 1 June and 31 August 2021*.
Start your 14-day trial here to get started.