According to international financial reporting standards, accounts receivable represent a certain amount of debt that is owed to an enterprise by other companies or people. In this case, receivables always refer to the current assets of the company, regardless of the date of its repayment.
Instructions
Step 1
The process for reducing receivables is divided into several main groups. Activities for each of them reduce the risks associated with the issuance of commercial loans.
Step 2
Before concluding a contract, check the buying company. Then draw up a contract very competently, take into account the possible motivation of the client for the timely return of all the necessary funds. Include the possibility of further deferred payment in the agreement. Determine the penalties for late return of payment for products, insure the risks of non-payment, check the signing of documents by the counterparty and the number of documents.
Step 3
When working with clients, classify counterparties according to the degree of risk. Just in case, sign with them an additional agreement on the loan to be issued, set the required credit limit and keep track of all the literacy of filling out the primary documents. Then carefully monitor the fact of payment, and if necessary, remind the buying company about the due date. Calculate interest (fines) on late payments, as well as track the current solvency of borrowers and new purchases of founders or management of the organization.
Step 4
In the event of an overdue debt, it is necessary to understand what caused the delay of receivables or the final non-repayment. Find all reliable information on the client's solvency, negotiate debt recovery. If it is unlikely that the debt will be paid off, decide by what method you can recover it: through a judicial or insurance procedure, through a system of assignment of rights of claim, or through a debt transfer mode.
Step 5
In a situation where the counterparty will repay his debt, if necessary, you can continue to work with him, having previously reduced his credit limit and set an increased degree of risk for him.
