Accounting information as the basis for development a receivables management strategy

Abstract

The accounting and financial system created at the enterprise must ensure its solvency and liquidity. We constantly need funds that can be quickly converted into money in time and at the lowest cost. The most liquid assets are cash due to which quick payment is made according to current settlements. Accounts receivable that are expected to be settled within 12 months after the reporting date are those assets that take some time to convert into available funds. Accounts receivable, its size at the enterprise, the conditions set by the company for its timely repayment by various debtors is the main step in the accounting system of the entity. The current conditions in Ukraine have disrupted the stability of settlement transactions between economic entities. The share of those enterprises, organizations, institutions that are unable to repay receivables and those that have accordingly suspended their activities temporarily or completely has increased. Therefore, the transformation of ordinary receivables into doubtful, and even worse, bad debts need to be determined by finding ways to repay them and properly reflected in the account. 
 During the period of continuous operation of enterprises, significant downtime or complete loss of business due to hostilities, quarantine restrictions, etc. is not taken into account. It is important to develop strategic plans for the management of receivables, taking into account various force majeure situations, both through the fault and through no fault of debtors. In the context of sustainable development, receivables have some stability in terms of its relative income in the enterprise. However, the current events in Ukraine do not allow us to consider this problem in terms of sustainable development. Economic instability due to hostilities in the country (as well as quarantine conditions that have occurred and may occur in the future) allows businesses to analyze possible risks. Therefore, to avoid such problems, it is necessary to develop a strategy considering economic, political, financial and other factors.