The purpose of creating any legal entity is to make a profit. In the process of providing services, production of goods and other financial and economic activities, an enterprise may become a debtor for one reason or another.
The debt, called receivable, arises from other legal and natural persons in relation to the enterprise. They act as debtors, and the organization acts as a company to which they have debts. In addition to buyers and suppliers, they can be borrowers who have entered into a loan agreement with a creditor firm. The amount of accounts receivable is the amount of debt or the amount of services (goods) equivalent to it. The head of the enterprise should approach the issuance of such loans with great caution - this financial transaction is capable of causing losses in financial turnover. There are several types of accounts receivable. The first includes not only a loan for goods or services, but also the issuance of advance payments - to employees of the enterprise, suppliers or contractors under the relevant contract. The second includes theft at the enterprise, cash shortages and other forms of financial losses.
On the contrary, if the enterprise itself becomes a debtor, such a debt is called accounts payable. It is such an obligation, expressed in terms of cash, goods or services, which the organization must pay to its debtors, individuals and legal entities. Debtors can be other organizations, extra-budgetary funds, company employees, private brokers, etc. Accounts payable can even include debts on the payment of wages to employees. Unpaid debts on time create a negative impression on the company - if they exist, the size of the financial assessment of a legal entity is even significantly reduced. In case of malicious non-payment, creditors may even bring you to criminal liability under Art. 177 of the Criminal Code of the Russian Federation.
