Effective management of current assets of the company is an important aspect of the financial policy of the organization.In contrast, non-current, that working capital is almost entirely responsible for the company's solvency in the current activity, and offers the best rate of return.
current assets management policy is a set of measures aimed at optimizing and rationalizing the structure, funding sources and working capital to increase the efficiency of its use.
management of current assets of the enterprise puts the objective of increasing profitability (profitability) in working capital (profit maximization) and the provision of sufficient and sustainable solvency.To some extent, these objectives are opposed.If you look closely, it is to increase the profitability of financial assets should be invested in a variety of types of working capital to a predetermined lower compared with cash liquidity.And in order to sustain the level of solvency, the company must always be on his account a sum of money for current payments, which it therefore actually be withdrawn from circulation, or this part of the funds should be placed in the form of highly liquid assets.
current assets management should solve the problem of their failure.One of the main reasons for a lack of working capital is the lack of stability in the receipt of raw materials.Often wrongly organized procurement leads to delivery is ten times larger volume of raw materials than required daily intake.Produced volley payments that lead to the diversion of huge amounts of working capital.
before now often there is a problem of non-payment, which also affects the amount of working capital.Management of current assets is designed to solve this problem.Each enterprise should classify its creditors on the term debt and to determine who has to pay in the near future, who would be able to wait a certain period, and who, perhaps, do not pay at all.
the first place in this list are payments to commercial banks for loans, and tax payments to the budget.Untimely in this case is fraught with serious penalties.
Effective management of current assets allows the company to pay for labor and raw materials, to carry out the costs that are related to the sales and production activities.For this we have to solve the following problems.
main problem whose solution will significantly replenish current assets of the company - is the rational management of stocks.Many Western economists argue that the sufficiency of working capital is nothing that affects how the rate of turnover of inventory.
second aspect of the deal with the increasing volume of current assets is to improve the firm's billing system.Management of current assets in this case, includes measures to speed up the calculations.To do this, create a registry, which will be information about all payers, contractual amount, timing calculations and other parameters.It is necessary to assume, from whom we should expect a delay, and for how long, and who can not pay.
The state of working capital greatly influenced by the state of the economy in the state.Thus, during the transition period, many enterprises are faced with the lack of current assets.It was affected by the rise in prices, the overall decline in production and other factors.
in market conditions should introduce new management model that should be adopted for enterprises.