Each company in the process of its activities strives to achieve a stable financial position. But the production sphere is characterized by periodicity, as a result of which there is a temporary need for additional resources. Filling such a gap is usually done with the help of borrowed capital. That is why the rational management of accounts payable is considered the most important issue in the work of managers and the accounting department.
Most investors, when studying a new investment object, consider such an indicator as creditworthiness. It characterizes the ability of the organization not only to attract borrowed financial resources, but also to return them in a timely manner, taking into account interest. The company's accounts payable management includes an item of payments to extrabudgetary funds that have not been made, unpaid invoices for goods delivered and shipped, as well as other debts and unfulfilled obligations.
The specialist developing the main strategic directions of the company should rely on the primary principles of entrepreneurial activity:
- Maintaining the trend of maximizing profits.
- Maximum reduction in consumables.
- Maintaining a leading position in the market of relevant goods and services.
Ultimately, any sources of additional financing are aimed at achieving the above goals. Of course, it is almost impossible to imagine successful production without borrowed funds . And accounts payable management is based on the regulation of an indicator expressing the ratio of equity to borrowed capital. The main principle says that the amount of capital raised should not exceed the amount of equity. And this is easy to explain, because in case of inability to pay debts at the expense of profit, repayment is carried out using the resources at the company's disposal.
In this regard, it should be noted that the management of accounts payable means the establishment of a limit limit on funds and the approval of the main criteria for obtaining additional funds. As a rule, these conditions are approved in a written agreement of two parties: the borrower and the commercial bank, that is, under a bilateral loan agreement. Exceeding such a limit is not allowed. Management activities should be based on an individual selection of methods, principles and forms of leadership in accordance with industry affiliation, scale of production and the characteristics of a particular enterprise.
If we consider the ratio of debtors and creditors of an individual organization, the excess of accounts payable is considered a positive moment. This indicates the saving of own funds, as well as the full use of the possibilities of attracted capital. In addition, the responsibilities of the manager include the rational distribution of borrowed capital in proportion to the established goals. As you know, commercial banks finance organizations only for specific collateral and strictly for their intended purpose.
The success of the implementation of managerial work depends on what methods of accounts payable management are chosen. In this case, a specific source of income plays an equally important role. So, financing can be carried out at the expense of investors in the form of partial contributions or shares in start-up capital or participation in new projects, loans from commercial banks, installment payments for shipped products. In conclusion, we can say that the management of accounts payable is a rather complicated process that requires extensive skills and knowledge.