Scenario Analysis No. 11 – Monitoring subscription and outstanding balances for a club-based business efficiently and effectively.

Much have been discussed in the gated-residential communities on the non-payment of some residents and how the committee entrusted to manage the collection of security fees faced problems in carrying out these tasks.  

Such a system, as I see it, will have three parts: non-financial information; financial information; and collection and recovery.


The non-financial information are details related to members that is to be captured. This will also depend on is allowed in the business system. The list of members and their details is prepared in an excel spreadsheet if the number of members is numerous.

The list is then uploaded into the system. An illustration of upload is as follows:


When checking the details after upload, a note can be added, for instance, to indicate new registration; or other information as required. An illustration is as follows:



This relates to the charges for the service. The rates charged can be on a monthly, quarterly, or annual basis.

An annual charge is preferred since payments made by residents can be matched against this single annual charge. Each payment is documented by a receipt issued. The outstanding balance remaining for each resident can be quickly determined by reviewing the unpaid portion of the annual charge.

Illustration of the Charge (represented as invoice issued) is as follows:


Payments made by residents are accordingly processed; and receipts issued and matched against the respective invoices. Softcopy of the invoice, receipts and outstanding balance can be emailed to the resident.

Information relating to invoices and receipts of the respective records of the residents can also be viewed in the system. Illustration is as follows:


Any comment pertaining to the annual charge and collections can be updated accordingly under the respective residents’ records in the system. Hence, any follow-up action can be done smoothly as the agreed action plan is recorded in the system.


The collection and recovery relates to the oversight tasks of the committee. Through this online business system, the annual planning by the committee is made easy. This is where the total annual collection can be estimated and matched against the estimated payments to the security company. Any over or under budget can be known upfront at the start of the year. Action to meet any deficiency can be taken early.

During the year, if the collection is not as expected, the information provided by the system can enable the committee to focus on recovery process on the delinquent residents. Such as reminder letters and statement of accounts issued to them online and electronically via email.

An illustration of the status of the total estimated collection and the total unpaid balances is as follows:


The information can also be drilled-down to the respective residents based on the functions available in the system. An illustration of drill-down function as provided by the system is as follows:


All this would be transparent since the information is captured in the system and, more importantly, in a common platform. Those who have access can view the information anytime and anywhere. Actions taken is based on documented information which has been entered into the system.

Note: The above analysis is also suitable for pre-school kindergarten business and any other business, where there is a need to track payments by registered members using Customer Relationship Module (CRM) and to track the overall financial position using the Accounting Module.

I look forward to discuss further with any interested party in business on how this proposal can help them.



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