ACCOUNTING AND CONTROL OF SETTLEMENTS WITH CUSTOMERS AND SUPPLIERS IN THEORETICAL PERSPECTIVE

Abstract

So far, companies do not pay much attention to the financial situation and solvency of a new client. In order to avoid all the consequences related to settlements between the company’s customers and suppliers, it is important to ensure effective and smooth control of each new customer of the company. It is also important to keep track of the financial situation and arrears of the company’s long-term customers in order to make better management decisions within the company to avoid disputes and disagreement with customers and loss of suppliers due to solvency. The scientific literature focuses on the organisation of payments to customers and suppliers, but today companies do not give priority to debt control, where most of the problems arise. Failure to pay customers on time leads to a loss of authority, trust and customer loyalty, and subsequently to financial difficulties in paying suppliers in the future. Introduction. The goal of every profit-making company is to grow successfully. For this to happen, the company must be confident in the solvency of its customers and itself. In the course of business activities, a certain process is established between the company and its customers and suppliers in the form of settlements, in other words, debts owed to the company and debts owed by the company. The development of the business itself depends to a large extent on these debts. Debts owed by customers are inseparable from debts owed to suppliers, since the company is not able to cover the latter when it does not receive earnings from its customers for the sale of goods or services previded. In such cases, losses are inevitable for the company. Late settlements by customers is one of the most serious problems in all businesses, when companies suffer significant losses as a result of untimely or unpaid debts. It is like a chain, where a disruption at one point disrupts activity at another point, ultimately resulting in inefficient business. Such disruptions have long-term consequences for the company, such as loss of trust and demand from suppliers and customers, and long-term financial problems for the company. Research problem – the scientific literature focuses on the organisation of settlements with customers and suppliers, but today companies do not give priority to debt control, where most of the problems arise. Failure of customers to pay timely leads to a loss of company’s authority, trust and customer loyalty, and then to financial difficulties in paying suppliers, employees, etc. The aim of the research is to analyse the accounting nature of settlements with customers and suppliers, accounting and control methodologies. Research objectives: 1. To analyse the nature of customer and supplier settlements; 2. To analyse the methods of settlement; 3. To analyse the documentation, organisation and control of accounting for settlements with customers and suppliers. Research methods: analysis of scientific and other literature, logical analysis and synthesis, methods of comparison, graphical representation, vertical, horizontal and relative analysis.