Management of accounts receivable organization
Uninterrupted activity of the organizationis based on the rational planning of its objectives, strategy, policy, 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, the accounts receivabledebt is one way to increase the number of sales and, consequently, its competitiveness. But in order that this is not a loss of money and, at the same time, of products and services, the enterprise must exercise effective control over debt obligations.
Management of accounts receivable organization- This is planning for the prospects of the organization and its marketing policies to increase the sales of products or services provided, as well as to prevent unforeseen delays in funds from counterparties.
Effective management of accounts receivable 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 and accounts payable, and accounts receivable organization, as well as their relationship to determine the financial stability of the enterprise;
• Development of methods for the prompt collection of debts and reduction of non-payer debtors.
Analysis and management of receivablesallows you to see the weaknesses of the organization, assess the effectiveness of its credit policy, as well as predict future income to the company's account.
Control over debt obligations is impossiblewithout a clearly articulated and structured regulation on cooperation with counterparties, which should reflect the inflexible rules for conducting a commercial transaction, as well as the procedure for paying receivables.
In addition, the rational management of accounts receivabledebt is based on the organized work of the units, which should also be indicated in the regulations (which are the units, for which they respond 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 in terms of receivables, the following rules should be adhered to:
• keeping records of orders and terms of their repayment by counterparties;
• introduction of benefits and bonuses for early repayment of the loan;
• analysis of goods (services) that are not in demand by debtors;
• determination of the maximum amount of receivables for the whole organization, as well as for individual counterparties (the term of cooperation, the form of ownership of the debtor, etc.) is taken into account;
• gradual introduction of factoring to accelerate the turnover of capital, as well as for guaranteed compensation of funds.
Thus, management of accounts receivabledebt - an important aspect in the economic activity of the enterprise. With its effective management, the organization achieves financial stability, stable growth and increased competitiveness.