The uninterrupted activity of the organization is based on the rational planning of its goals, strategies, policies, as well as on the control of the internal and external environment of the enterprise. In addition, it is very important to consider the prospects for the development of the organization and its further functioning in the market.
For many organizations, accounts receivable is one way to increase the number of sales and, accordingly, their competitiveness. But in order for this not to be a loss of money and, at the same time, products and services, the company must exercise effective control over debt obligations.
Organization accounts receivable management is planning the prospects of the organization and its marketing policy to increase sales of products or services rendered, as well as preventing unforeseen delays of funds from contractors.
Effective receivables management includes the following components:
• availability of reliable information on the solvency of counterparties;
• analysis and evaluation of debtors and their credit history;
• analysis of the movement of both payables and receivables of the organization, as well as their ratio to determine the financial stability of the enterprise ;
• development of methods for the speedy collection of debts and reduction of debtors-defaulters.
Analysis and management of receivables allows you to see the weaknesses of the organization, evaluate the effectiveness of its credit policy, and also predict the receipt of future funds to the company account.
Control over debt obligations is impossible without a clearly formulated and structured regulation on cooperation with counterparties, which should reflect the inexorable rules for conducting a commercial transaction, as well as the procedure for payment of receivables.
In addition, the rational management of receivables is based on the organized work of the units, which should also be specified in the regulations (which units, for which they are responsible and how they interact with each other). All this information can be included in the credit policy of the organization, which is developed for the fiscal year.
To implement the credit policy of the organization regarding receivables should adhere to the following rules:
• keeping records of orders and their maturities by counterparties;
• introduction of benefits and bonuses for early loan repayment;
• analysis of goods (services) not claimed by debtors;
• determination of the maximum amount of receivables for the entire organization, as well as for individual counterparties (taking into account the period of cooperation, the form of ownership of the debtor, etc.);
• gradual introduction of factoring to accelerate capital turnover, as well as for guaranteed compensation of funds.
Thus, the management of receivables is an important aspect in the economic activities of the enterprise. With its effective management, the organization achieves financial stability, stable growth and increased competitiveness.