Accountants gain transparency on customer credit risk thanks to new partnership
Accountants will now have greater visibility into their clients’ credit risk and ability to pay as a result of a new partnership between fintech debtor management software, FeeSynergy and Equifax.
FeeSynergy will now team up with the credit bureau, Equifax, to enable accounting and legal firms to access an Equifax credit score and report as part of their risk assessment process .
Scott Mason, Managing Director of Equifax, said the partnership comes at a time when gaining insight into customer creditworthiness is critical to help reduce the time spent chasing bad debtors and ensure that customers cash flow remain stable.
âIn today’s economic climate, managing customer and supplier credit risk is critical,â said Mr. Mason. âUnderstanding a customer’s risk and ability to pay can help better protect cash flow.
âOur partnership with FeeSynergy gives the accounting and legal industry a more complete picture of potential and existing clients so they can make informed decisions about credit risk and customer engagement.
FeeSynergy chief executive Malcolm Ebb said the partnership will now help accountants manage their entire accounts receivable process, from commitment to payment.
âOur partnership with Equifax is revolutionary,â said Mr. Ebb.
âThe product we are bringing to market has lasted over two years and will provide our accounting and legal clients with valuable information to better manage risk and improve customer engagement. “
Tax debts and credit reports
Credit bureaus, like Equifax, have recently been in the limelight, following the ATO’s decision to start using new powers that allow it to disclose corporate tax debts over $ 100,000 to credit bureaus if the business does not make an effort to manage its debt within 28 days of notice.
ATO’s new powers come after the government adopted a law at the end of 2019 to crack down on businesses with tax debts over $ 100,000 that are at least 90 days past due.
The tax office told Accountants Daily that the orange warning letters – sent in August – were the first time the agency has sought to use its new powers since the law was passed over 18 years ago. month.
However, ongoing lockdowns in NSW, Victoria and ACT have forces the ATO to suspend such drastic debt and compliance work.
Suspended âfirmer operationsâ should include garnishment notices, statutory requests and the power to disclose corporate tax debts to credit bureaus.
The ATO, however, has confirmed that it will not implement a universal pause on all compliance work, a departure from its position last year where it stopped all debt and deposit campaigns in light of the COVID-19 pandemic.
“We have not ended our debt and deposit business,” an ATO spokesperson told Accountants Daily.
âBut in our commitment, we are aware of the environment in which customers operate, especially customers in prolonged confinement and [we will] tailor our application approach for clients who are negatively affected by these blockages. “
This story originally appeared on Lawyers Weekly’s sister brand, Daily accountants.