Archive for July 2018

Fine Opportunities for the Proper Financing Option Now

More recently, managers have used any means in their struggle to increase sales. During the crisis, it is necessary to take more care of the security of the enterprise, its solvency, and maintenance of current liquidity.In such a situation, collection of accounts receivable, with which VAT and profit tax have already been paid, becomes a priority task. Accountants, financial and senior employees of the company need to learn how to manage debtors’ debts, so as not to lose profits and reduce the risk of financial losses.

The Accounts receivables

Accounts receivable are always a problem for the firm. But in the realities of today’s day, there are cases when even old and reliable partners cannot (or do not want to) pay bills.

In order to minimize the risks associated with the receivables, the firm must constantly keep it under control. But preventive measures (evaluation of counterparties, work with advances, insurance of debts, etc.) do not always allow you to protect yourself from the “hung” debtor. The accounts receivable financing happens to be quite important.

The Secret

The secret of efficiency here lies in an integrated approach. Thus, timely monitoring and analysis will allow timely identification of overdue debts and promptly take measures to recover it. Impact on the debtor can be tough or mild: you can immediately sue, or you can support the counterpart by offering him more affordable methods of paying off obligations, such as barter or deferred payment.

The Requirements

Work with receivables requires planning and a well-established process of managing the risk of non-payments. It begins with the organization of correct and timely workflow within the company and with counterparties. Regular analysis of accounts receivable, the right to change the terms of delivery, regulating documents with a description of the order of actions for the return of debts are made. It is necessary to consider measures of encouragement, motivation of employees to achieve minimum set indices of debt.

The initial construction of a receivables management system implies a series of sequential actions aimed at prompt identification and elimination of possible risks of non-return of debts, within which the relevant internal services of the creditor (legal, financial, security) operate with debtors. Such a system is built depending on the content and structure of arrears, which determines the range of its participants, the possibility of attracting an administrative resource, conducting PR campaigns, etc.

The construction of the system consists of the stages.

Analysis of the structure of the DM (receivables)

At this stage, the main focus is on general approaches to the analysis of the organization’s DZ, the overall separation of the DZs in terms of the structure for understanding the “state” of the DZ and deciding on further work.

Basic data for analysis:

Work on managing the debt portfolio within the company includes calculating the limit amounts of receivables – critical and working (allowable). These indicators are indicators that signal the need to strengthen (or, conversely, to weaken) the work with debtors.

  • Partner links