Accounts receivable are the amounts of money that consumers, customers and other debtors are required to pay to the organization. Consequently, receivables appear when the services or goods of the firm are sold, but the money for them has not been received. Regardless of the maturity date of this debt, it is customary to refer it to the working capital of the enterprise.
The presence of debtors in the organization is not attractive, but in reality this often happens. For example, there was a shipment of goods to a client, the company paid off with the suppliers, the employees of the organization received a salary, but the counterparty is in no hurry to pay. When such actions occur deliberately, this can already be regarded as theft, the entrepreneur should resort to protecting his rights in court. The rest of the cases of receivables must be disassembled and analyzed.
By the end of 2013, the accounts receivable of state-owned companies: Gazprom, Rosneft and Transneft to pipe suppliers reached RUB 50 billion.
Analysis of accounts receivable
First of all, the analysis is carried out in order to understand the current situation with the sales of the company's products. This procedure helps to identify buyers-debtors, for whom it is advisable to terminate the provision of a loan, as well as bona fide payers, who, on the contrary, should increase the size of a commodity loan. A competent analysis will help determine the best ways to increase the organization's turnover.
Accounts receivable accounting is closely related to accounts payable, without which the correct preparation of the balance sheet is also impossible. In accounting, such accounting is a very important operation, since compliance with the rules allows you to correctly calculate income and value added taxes. Otherwise, the business entity will be held liable for violation of the law.
Accounts receivable management
The continuous increase in such debt creates serious problems for the organization. The desire to increase sales can lead to significant losses and even bankruptcy. Successful management of accounts receivable will help maintain the solvency of the organization and prevent a shortage of working capital.
Accounts receivable are a current asset of the organization.
The main goal of management is to keep the debt at an optimal level, which is individual for each enterprise. An increase in accounts receivable means an increase in non-payments for the shipment of products, which leads to a decrease in current assets and solvency. The decrease indicates problems with the sale of products and a reduction in commodity credits provided by the enterprise.
The procedures for managing accounts receivable include: developing a way to sell the company's products with a continuous flow of funds, effectively interacting with counterparties to collect debts, and optimizing the organization's structure.
