Bookkeeping

Debtors and Creditors Ledger Management in South Africa

Your debtors and creditors ledgers are where cash flow risk becomes visible. If these ledgers are stale, you will make bad cash decisions even with decent sales.

Debtors Ledger: What to Track

For each customer:

• Invoice date and amount
• Due date
• Amount paid
• Outstanding balance
• Aging bucket (current, 30, 60, 90+ days)

Review weekly. Aging drift is an early warning sign of future cash pressure.

Creditors Ledger: What to Track

For each supplier:

• Invoice date and amount
• Payment terms
• Due date
• Amount paid
• Outstanding balance
• Dispute notes if any

This protects supplier trust and helps avoid supply disruption.

Reconciliation Discipline

Monthly:

1. Reconcile debtors control account to detailed customer balances.
2. Reconcile creditors control account to supplier statements.
3. Investigate unmatched balances immediately.

Never carry unexplained ledger differences into the next month.

Practical KPI Set

• Debtor days
• Creditor days
• Percentage of debtors older than 60 days
• Top 10 overdue customers by value
• Supplier accounts at risk of hold

These KPIs should be in your monthly management review.

Cash Protection Rules

• Do not extend new credit to chronically overdue customers without approval.
• Use deposits/progress billing on higher-risk jobs.
• Prioritise payments to strategic suppliers.
• Formalise payment plans in writing.

How Money Manager Helps

Use your monthly budgeting and transaction patterns to align expected collections and payments with real ledger status so planned cash flow reflects reality.

Disclaimer: Credit terms and enforcement options vary by contract and sector. Obtain legal advice for disputed high-value balances.