Accounts receivable and payable - an important indicator of the enterprise

work any firm estimate of the set of indicators, all of which characterize the various aspects of its activities.Thus, the volume of production shows the capacity of the company, profitability - its economic efficiency, security of those or other resources - the stability and security of supply.Receivables and payables are important indicators of the financial health of the company.About that, what they mean and how to manage them, we'll discuss in this article.

First of all, it is necessary to define concepts such as receivables and payables.These concepts in its economic meaning the exact opposite.Receivables displays the amount you need to venture its counterparties - buyers, suppliers, governments and so on.Sometimes it happens that the debt of the counterparty is a certain tangible assets, which have already paid for but not yet delivered.Despite the fact that the real object of debt - items on the balance sheet is still displayed their monetary value.

same Accounts receivable - is the amount owed by the enterprise itself or other entities hozdeyatelnosti governments.Thus, receivables and payables are, on the one hand, the opposite, and on the other - are closely interrelated concepts.

In general, the presence of arrears is normal and acceptable phenomenon within certain limits.If the debts exceed these limits, there is a high probability of a crisis.In case of exceeding the permissible thresholds rates receivable, there may be problems with liquidity, and in the case kreditorki - solvency of the enterprise.

Based on the above, the most important task of the financial management of the company is the management of accounts receivable and accounts payable.This process is the responsibility of the higher-level leadership in the field of finance.Its components are:

  • account receivables and payables,
  • forecasting future debt indicators,
  • establishment of maximum allowable debt,
  • if necessary - take measures to adjust the parameters that do not satisfy the requirements of leadership.

Accounting receivable conducted in the special balance sheet items, as well as the accounts of accounting.This creditor obligations are broken down by the subjects to which the company owes money - distribution, budget, customers and so on.In the case of receivables, in addition to a breakdown by subject is also split on the reliability of the debtors, including a so-called reserve doubtful commitments that can not be made of their carriers.Only after a certain time pobyla debt in such a reserve, it can be written off as uncollectible.

With regard to emergency measures to regulate the debt, they can be different: for customers - lawsuits, engaging collection agencies to impose additional penalties on the debtor.In the case of creditor obligations often the main control measure is to attract additional funds to cover the debt or the negotiations on the revision of the terms of payment.

Unfortunately, it is thought that the receivables and payables - normal and leads to excessive carelessness of managers of financial companies.We would like to warn readers against overly relaxed attitude to this kind of commitments - known many cases when they have accumulated to an enormous size and cause enormous problems until the complete collapse of the enterprise.