Managing Finances: A Review of Aged Debtor Report and Recommendations

Manage Finances

Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
1. Take a review of the aged debtor report and summarise it by identify the issues within
the fiscal report.......................................................................................................................3
2. Analyse the issue with the process of aged debtor of the company...................................3
Recommendations..................................................................................................................4
CONCLUSION..........................................................................................................................5
REFERENCES...........................................................................................................................6

INTRODUCTION
Aged debtor report is defined as the quantitative measurement of the due which are
owned by the business organisations (O'Brien, Anderson and Ramsay, 2020). In the report,
the analysis of the debtor’s report is made and the issues and recommendation are made the
basis of the reports.
MAIN BODY
1. Take a review of the aged debtor report and summarise it by identify the issues within the
fiscal report.
As can be analysed from the table, it can be reviewed that the aged debtor report has 3
clients. Client 1 has a debt of $4356 for 90 days, client 2 has 120 days’ debt for $ 2714 and
client 3 has $ 3781 for 60 days. The issue is regarding the payment of the amount that id
owed by the company to its debtors. None of the debtors are paid off their amount in the
period of 10 days.
2. Analyse the issue with the process of aged debtor of the company.
The table of aged debtor’s showcases that the clients are not satisfied with the
condition of the payment of fees paid to time them on the specific time period. These are the
top 3 clients of the organisation and they are not being duly paid – off their money from the
time period of the invoice accordingly (Gamble, Gärling and Michaelsen, 2019).
It can be suggested for the old client that the interest charges that are put towards the
debtors does not satiny the condition of tem aunt that has not been paid on time. For this the
analysis that has been done is:
 Assuming in some way the obligation stays neglected for a time period of 60 to 90
days, it will demand an extra 5% interest expense. With an unpaid obligation of $
3,781, Client 3 comes into this classification. The client's cash based cost will be $
3970 assuming that the obligation is paid within this time span.
 If the obligation of debt remains outstanding for a time of 90 to 120 days, it will force
the company with an extra 10% loan cost. With an unresolved debt of $ 4,356, Client
1 comes into this grouping. It the obligation is paid – off in this specified period of
time then the client pocket expense will cost approximately $ 4791.60.
 If the obligation remains unpaid for 60 to 90 days, an additional 5% interest will be
charged. Customer 3 falls into this category because it has an outstanding debt of $