MANAGEMENT OF ACCOUNTS RECEIVABLE

Abstract

Forecasting of cash flows under conditions of economic crisis and tough competition allows ensuring financial stability of the company. Receivables are the main source of cash inflows. Contractual relations with the buyers ensuring timely receipt of cash from customers to pay timely to creditors are the main element in management of receivables. The problems associated with shortage of current assets, increase in the value of doubtful and bad debts, cash gap, as well as the main directions of the process of managing accounts receivable are presented in the article. Methods of accounts receivable planning are suggested. Mechanism for the formation of a recovery plan for receivables is considered on the example. The main elements of the company's credit policy are examined. The assessing criteria of counterparties have been established, the compliance with which gives the right to receive commercial credit. Factors are defined under which commercial credit is not possible and contract is suggested on standard terms (prepayment). The sequence of the analysis of accounts receivable state is described and the conclusion is made about the necessity and importance of accounts receivable management for successful operation of the company