Проблеми теорії та методології бухгалтерського обліку, контролю і аналізу (Mar 2017)
Еffect of debt on financial flows of dairy plants
Abstract
The article examines the need in analytical support and management of accounts payable as forming factors of liquidity. It deals with the state and tendencies in formation of types of debt by the example of milk processing enterprises. The comparative analysis of the debt ratios at the company is carried out. It includes the settlements with debtors and creditors related to incoming and outgoing financial flows. The status of such calculations significantly affect the financial results of the company and its development. Therefore, the research of types of debt as the important factor in increasing the efficiency of the enterprise is of particular relevance. Economic relations between economic entities create the conditions where they can act both as sellers and buyers causing the objective of various types of debt. The presence of debt types is caused by various reasons, for instance, the incompliance of finished goods shipment, performance of works or services, receipt of commodity-material values, accrual payments to the moment of payment. Accounts receivable have a significant share in the composition of current assets. Therefore, the important place is given to the analysis of receivables when the company analyzes the turnover of its working capital. The source of the analysis is an enterprise balance sheet, the data of analytical accounting are used for the internal analysis. The detailed analysis of accounts receivable is carried out in order to take current management decisions on their reduction, and use timely actions for recovering doubtful receivables. In managing receivables and payables one should regularly monitor their ratio level, turnover rates and the period of maturity. In addition to these quantitative indicators one should also calculate quality indicators, in particular, to identify the groups of products, which account for the largest share in debt. The imbalance between the types of debt leads to uncontrolled growth in debt, deteriorating financial condition of businesses, devastating economic consequences, therefore, the objective need is to develop the system of its monitoring. The studies performed by the author prove the main directions in debt type management to optimize financial flows.
