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frequently asked questions

Q. I have a good relationship with my clients. Why do I need to use thepowertool?

A. Statistics show that 80% of bad debts are caused by unforeseen events. This means that late payment and bad debts can not be predicted on the basis of past performance. A good number of AIQSANA adjudication application are from people who will say - "We've been working for so-and-so for 10 years and never had a problem until now". This is why EVERY company should follow the proper process and be ready to pull the trigger when they need to. If you never have to do it, great. You don't buy life insurance in the hope that you will die next week, but it's comforting to know it's there when you need it.

Q. Why can’t I just raise an invoice?

A. You can choose to work outside the Payment's Act with no protection. You can also choose to work on site without a helmet or safety boots. But why would you do it? When you get hit by a falling brick, it's too late to remember to wear a helmet. When you get hit by a bad debt, it can be too late to seek protection under the Act. With the Payment's Act, Tax Invoices have no effect, other than complying with your GST obligations. Payment is based on the Payment Claim/Payment Schedule process. By issuing the Tax Invoice at the right time, you avoid the extra cost and time, for both you and your client, of adjusting amended invoices and BAS returns.

Also, invoicing with generic accounting systems usually results in paying GST on retentions. On a $500,000 job, your client will hold an extra $2,500 in retention that should be in your bank. There is another risk with generic Tax Invoices too, in that they do not roll work forward; so if your client has reduced the payment on a particular invoice, it is very easy to overlook adding the shortfall in to a later claim.

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