Case Study 1
Accounts Receivable Cleanup for a Software Development Company
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Software development | March 2024
Accounts Receivable Cleanup for a Software Development Company
Westaus PTY Ltd is a fast-growing Australian software development company where rapid growth brought increasing financial complexities. We stepped in to clean up their accounts receivable, bringing greater accuracy, clarity, and control to their books.
Client Overview & Business Challenge
The client had three years of messy books. About 150 invoices weren’t marked as paid correctly, and customer payments had been applied to the wrong invoices. As a result, the client couldn’t tell how much was owed or by whom, and the bank accounts were unreconciled.
Strategy & Approach
- Reviewed every invoice and traced which payments had been applied against it
- Corrected misapplied payments and reconciled all bank accounts
- Requested remittance details from customers to confirm what each payment covered
- Sent customers statements of their account from our ledger and agreed balances with them
Results & Business Impact
- A clear, accurate picture of how much each customer owed
- Regular payment reminders put in place to chase outstanding invoices
- No receivables overdue by more than 30 days
- Improved cash flow: money stuck in old unpaid invoices was collected instead of being written off
- Better decisions: with reliable receivables, the client could see which customers paid slowly and plan cash for hiring and expenses with confidence
Key Learning
Receivables are only as reliable as the payment matching behind them. Applying each payment to the right invoice, and confirming balances directly with customers, turned three years of uncertainty into a receivables ledger the client can trust and act on.
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