COMPANY ACCOUNTS RECEIVABLE: ESSENCE, MEANING AND BASIC PRINCIPLES OF MANAGEMENT

Abstract

This article reflects current issues related to the formation of accounts receivable, summarizes and systematizes the basic principles of its management. Debt relations are one of the most significant aspects of relations between economic entities in various sectors of the economy: production, services, the financial sector, trade, construction, transport, and many others. No active company can exist without entering into a debt relationship as a debtor or creditor. Therefore, most of the facts of the company's business life, which involve interaction with contractors, do not do without the formation of receivables and payables. The peculiarity of accounts receivable as an asset that affects the absolute liquidity of the company is that funds are diverted from turnover. However, despite this, the role of accounts receivable is important from the point of view of marketing and business reputation of the company: providing customers with the opportunity to pay for goods not immediately, but with a delay attracts new customers and expands the customer base, thereby increasing sales directions, and consequently revenue and profit. Therefore, the management of accounts receivable is an important component of the management of current and monetary assets of the enterprise. It can be concluded that the increase in accounts receivable is an objective need to maintain and improve the company's position in the market. Accounts receivable is a diversion of funds from the company's turnover and its excessively high level may lead to inability to continue operations or bankruptcy.