Debtors and Creditors Management
Presenters : Doubt Moyo
Overview
Effective debtors and creditors management is fundamental to maintaining healthy cash flow and ensuring the financial sustainability of any organisation. Poor management of receivables and payables can result in liquidity constraints, strained supplier relationships, and ultimately business failure. This webinar provides a practical and strategic approach to managing debtors and creditors efficiently, with a strong focus on improving cash flow, measuring performance, and strengthening financial stability.
Join Doubt Moyo as he unpacks the core principles of debtors and creditors management, explores key financial ratios such as debtor days and creditor days, and demonstrates how structured cash flow management techniques can significantly enhance overall business performance.
Learning objectives
By attending this webinar you will gain the following competencies:
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Understand the concepts and classifications of debtors (accounts receivable) and creditors (accounts payable).
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Appreciate the importance of effective receivables and payables management in sustaining business liquidity.
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Calculate and interpret debtor days and creditor days as performance indicators.
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Analyse the debtors and creditors cycle and its impact on working capital.
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Apply practical cash flow management techniques using structured debtor and creditor strategies.
Content
The webinar will cover the following topics:
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Introduction to Debtors and Creditors Management
o Definition and classification of trade receivables (debtors)
o Definition and classification of trade payables (creditors)
o The role of receivables and payables in working capital management
o The relationship between liquidity and operational efficiency
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The Debtors and Creditors Cycle
o Operating cycle and cash conversion cycle
o Credit terms and payment policies
o Collection processes and supplier payment management
o Impact of timing differences on cash flow
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Financial Performance Indicators
o Debtor Days Ratio (Accounts Receivable Days)
o Creditor Days Ratio (Accounts Payable Days)
o Debtors and creditors days as measures of business performance and financial stability
o Interpretation and benchmarking of ratios
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Cash Flow Management Techniques
o Methods of improving collections efficiency
o Credit control procedures and risk assessment
o Negotiation of supplier credit terms
o Strategies to optimise working capital
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Impact of Poor Debtors and Creditors Management
o Liquidity constraints and cash flow shortages
o Increased borrowing and finance costs
o Reputational damage and loss of stakeholder confidence
o Risk of insolvency and business failure
