What is a receivable and how to work with it

Organization or IP with a non-cash payment systemare often perplexed: "What is it: the accounts receivable become more and more monthly, grows like a snowball?" Someone will say that it's good - the products (services) have demand, and with the expectation you can wait a while. But do not delude yourself - basically this increase is a signal that the company will suffer losses in the near future. Have you ever thought about how some permanent debtors use you as a bank? Those funds that are not paid to you on time are free money for your customers. They direct them to other needs, they say, you can wait for payments (no one requires it). And what do credit organizations do in this case? Naturally, they are fined for late payment or accrued interest. So it's time to understand what accounts receivable are and how to reduce it, taking under strict control!

Tips that help reduce receivables

In principle, the entire "debtor" is divided into the followingtypes: normal (the period between shipment (provision of services) and the settlement period under the contract); overdue (the amount was not received on the date agreed by the contract) and bad (when there is no possibility to return the funds). And in order not to be in the second and third situations, you need to follow the following tips. Continuous work with accounts receivable has several stages.

1. Weekly track debtors with helpsoftware. The good news is that computer programs are being developed that form reports in a matter of seconds. This allows you to systematically monitor the financial situation.
2. The earlier bills are issued, the sooner they will arrivemoney. In addition, it is desirable for the client to remind about the terms of payments. For example, attach a respectful letter to this invoice to the invoice, or you can add this information on the invoice sheet below, by highlighting it in bold. The idea of ​​paying on time should be firmly entrenched in the memory of the debtor.
3. System of discounts for early payment - excellenta way to encourage customers to settle as soon as possible. This means that you can get a discount, say, 2% if you make a payment within 10 days, whereas the contract specifies a period of 30 days from the date of invoicing (and then see Council No. 2).
4. Constant work with debtors significantlyincreases the chances of getting money. Letters must be accompanied by phone calls. Of course, initially reminders do not need to be seen as a pursuit. Messages should always be polite, but firm, ask buyers about when they can pay the debt.
5. Another effective way is to provide forsuch penalties as fines, penalties, interest. For example, it is enough to look at utility bills or mobile phones to understand what receivables are in the area of ​​housing and communal services and communications, as well as to see what conditions of charging and collection are there. These companies are extremely effective in collecting non-payments.
6. Transfer the debt to a collection agency,if, despite all efforts, the debtor does not settle with you. This is not an ideal option, but collector firms know what accounts receivable are, how to deal with it, and are very persistent in "knocking out" money.

Why do you need audit of debts?

With proper control, it works effectivelyconstant monitoring of debts. Most customers tend to pay on time. In addition, it is desirable to check the status of accounts by auditing receivables and payables. Based on its results, the weak and strong aspects of the firm's activity are revealed, and appropriate measures are proposed to improve its financial condition. The main steps of the audit are as follows:

1. Studying of constituent documents, accounting policy of the organization.
2. Analysis of the primary documentation, the linking of financial documentation with the terms of contracts and prices valid at that time.
3. Evaluation of settlement documents, comparison with reporting forms.
4. Determination of the reliability of data in the balance sheet and its applications.
5. Development of recommendations.

In principle, the area of ​​work with accounts receivable and accounts payable requires only a well-organized system of organization and control. Set your rules, and then follow them.