Payable Management Research Articles

USE OF ARTIFICIAL INTELLIGENCE IN ACCOUNTING AND ANALYTICAL PROCESSES

The beginning of a new era has led to the emergence of new factors that impede the effective operation of enterprises. One of these factors is the exponential growth of the amount of data that needs to be processed and analyzed in order to make effective management decisions. This leads to the need to develop or search for a software product aimed at collecting, analyzing and systematizing a large amount of data, as well as performing relevant tasks based on them that artificial intelligence is capable of. The article is aimed at researching and revealing the potential of using artificial intelligence (AI) in the field of accounting. The main focus is on improving the efficiency of the enterprise, which is achieved by automating and optimizing various aspects of accounting work. On the basis of a thorough analysis of the works of foreign and domestic specialists, the theoretical aspects of the concept of artificial intelligence are distinguished on the basis of systemic, functional and information approaches. The directions of compliance of the accountant, which can be artificial intelligence, are identified, namely: processing of invoices, cost management, analysis of financial statements, management of payables and receivables, compliance with tax legislation and detection of fraud and risk management. Ways of using AI in processes of automation and optimization of processes, such as invoice processing, cost management, financial reporting analysis, control of accounts payable and receivable, ensuring compliance with tax legislation and fraud detection and risk management, have been identified. The artificial intelligence technologies for their purpose, which are the most used in the world, are presented. The sequence of actions in the identified needs in artificial intelligence and its outstanding volume is structured. The results of the study confirm the potential of AI to automate operations, increase productivity and accuracy in accounting, as well as reduce risks and improve audit efficiency. Key words: Artificial intelligence, accounting, analysis, accounting automation, accounting information systems, information systematization, management efficiency.

Effects of working capital management on the profitability of South African construction companies listed on the JSE

This study examines the correlation between inventory and accounts payable management and the profitability of construction companies listed on the Johannesburg Stock Exchange (JSE). The annual financial statements of all 13 listed construction businesses from 2009 to 2019, including statements of financial position and financial performance, were obtained from an external database for statistical analysis. The study employed multiple linear regression to assess the impact of working capital management on the financial performance of construction companies listed on the JSE. Additionally, a correlation model was utilised to investigate any potential relationships among the variables being examined. The study's findings indicate that the management of working capital has a notable impact on the profitability of construction companies listed on the Johannesburg Stock Exchange (JSE) in South Africa. Despite contradicting findings from other studies that support the opposite conclusion, this study demonstrates that effective management of working capital does not necessarily lead to a positive relationship with financial performance for financial managers of construction companies. Therefore, it is crucial to consider other aspects of management in addition to working capital.

MSME Accounting Revolution from Perceptions, Challenges, Solutions

This study investigates the perceptions of Micro, Small, and Medium Enterprises (MSMEs) regarding accounting practices, focusing on Citra Pertiwi Farm and SUGOfreshmilk. Using a qualitative approach with interviews, observations, and documentation, the research identifies positive perceptions of accounting's benefits while noting shortcomings in inventory recording and accounts payable management. The study concludes that the current accounting practices in these MSMEs do not fully align with accounting standards for MSMEs. The findings suggest a need for improved accounting systems in MSMEs to enhance financial management and sustainability. Highlight: MSMEs' perceptions of accounting practices. Benefits and shortcomings in MSMEs' accounting. Emphasizes need for improved accounting systems. Keyword: MSMEs, Perception, Accounting, Improvement, Financial Management

An Analysis of Working Capital Management with Reference to Wheels India Limited

Exploring the intricacies of working capital management is pivotal due to its fundamental significance in the realm of corporate finance and business operations. Effective management of working capital is crucial for ensuring the financial health, operational efficiency, and long-term sustainability of organizations across industries. This research paper aims to provide a comprehensive analysis of working capital management, with a specific focus on its implications for company performance and success, The rationale behind this topic lies in the recognition of working capital as a critical aspect of financial management that significantly influences a company's liquidity, profitability, and risk profile. By investigating working capital management, this research seeks to shed light on the strategies, practices, and challenges associated with optimizing the balance between current assets and liabilities within an organization. Moreover, the selection of Wheels India Limited as a case study offers a practical and insightful perspective into the real-world application of working capital management principles within the automotive components sector. As a prominent player in this industry, Wheels India Limited presents an ideal opportunity to examine how working capital management strategies are tailored to address the unique dynamics and requirements of its business environment. Through this research paper, the aim is to explore various facets of working capital management, including inventory management, accounts receivable and payable management, cash flow optimization, and the use of financial ratios and metrics. By conducting a thorough analysis of Wheels India Limited's working capital practices, valuable insights can be extracted, best practices identified, and recommendations proposed to inform decision-making processes for practitioners, policymakers, and stakeholders alike. In essence, this research endeavor contributes to the existing body of knowledge on working capital management while offering actionable insights to empower organizations to enhance their financial performance, mitigate risks, and achieve sustainable growth in today's dynamic business landscape. Working capital management stands as a cornerstone of financial strategy for companies across industries, serving as a vital determinant of their operational efficiency, financial health, and overall competitiveness. Within this realm, the automotive components industry presents a dynamic and complex landscape, characterized by evolving market dynamics, technological advancements, and stringent quality standards. Amidst these challenges and opportunities, Wheels India Limited emerges as a prominent player, re410nowned for its longstanding legacy of excellence, innovation, and customer-centric approach.

WORKING CAPITAL MANAGEMENT STRATEGIES OF NIGERIAN MANUFACTURING FIRMS AND THE EFFECTS ON CORPORATE PERFORMANCE

The study examined the working capital management strategies of Nigerian Manufacturing Firms and effect on Corporate Performance. Working capital management was decomposed into five variables being account receivable management (ARM), account payable management (APM), inventory management (INVM), cash conversion cycle (CCC) and cash conversion efficiency (CCE) which serve as the explanatory variables of the study while Corporate Performance was proxied by Return on Assets (ROA). The data for the study were collected from the Financial Statement and Annual Accounts of the selected firms covering a data panel framework of 20 years period (2000 to 2020) and nine (9) firms specifically were selected. The analysis was based on the ARDL regression technique was used to estimate the regression model while the probability values of the ARDL regression estimates were used to test the hypotheses at 0.05 level of significance. The result showed that: Account receivable management strategy have long run and no short run effect on return on asset of quoted manufacturing firms in Nigeria; Account payable management strategy have long run and no short run effect on return on asset of quoted manufacturing firms in Nigeria; Inventory management strategy have long and short run effect on return on asset of quoted manufacturing firms in Nigeria; Cash conversion cycle strategy have long and short run effect on return on asset of quoted manufacturing firms in Nigeria; and Cash conversion efficiency strategy have no long and short run effect on return on asset of quoted manufacturing firms in Nigeria. Further analysis revealed that account receivable, account payable inventory management and cash conversion efficiency had causal effects on return on assets. However, there is no causal relationship between cash conversion cycle strategy and return on asset of quoted manufacturing firms in Nigeria. The study thus concluded that working capital management strategies have significant effect on the financial performance of firms, and that the degree of effect differs by period, type of strategy and financial performance indicator. It was recommended among others that management of firms should firms increase the supplies to customers and allow credit to its customers, and firms should also explore the use of short-term credit in financing their business. The study contributed to knowledge by employing long run panel technique in investigating the working capital and firm performance nexus in Nigeria.

WORKING CAPITAL MANAGEMENT STRATEGIES OF NIGERIAN MANUFACTURING INDUSTRIES AND FIRMS VALUE

This research explores the capital management strategies employed by Nigerian manufacturing industries and their impact on firm value, as measured by Earnings per Share (EPS). Employing an ex post facto research design, the study focuses on a population of 25 industrial goods industries, selecting a sample of 9 quoted manufacturing firms. The independent variables encompass various working capital management strategies, including accounts receivable management, accounts payable management, inventory management, cash conversion cycle, cash conversion efficiency, current assets to total assets ratio, and current liabilities to total assets ratio. The dependent variable is firm value, proxied by EPS. Results reveal both short-term and long-term effects of working capital management on EPS. The long-run model demonstrates significant negative relationships between accounts receivable management (ARM) and EPS, suggesting that efficient management of accounts receivables has a significant impact on financial performance. Conversely, accounts payable management (APM) exhibits a positive but non-significant effect. Inventory management (INVM) and cash conversion cycle (CCC) are positively related to EPS, with CCC and cash conversion efficiency (CCE) having significant effects. In the short run, the error correction model (ECM) indicates a negative and significant impact of deviations in accounts receivable management and cash conversion cycle on EPS. The study recommends among others that organizations focus on enhancing short-term corrective measures, such as agile and responsive strategies in accounts receivables, to ensure immediate and efficient impacts on financial performance.

A STUDY ON RECEIVABLE MANAGEMENT AT INDIAN TOBACCO DIVISION MEENAKUTTE VILLAGE JALA HOBALI

This research explores the field of receivable management with the goal of offering a thorough examination of the numerous practices and techniques used by organizations to maximize productivity and improve financial performance. A company's liquidity and profitability are substantially impacted by receivables, a crucial part of working capital. This research analyses the complex link between receivable management practices and their related consequences on cash flow, operational expenses, and overall financial health by looking at a varied variety of sectors and firm sizes. Keywords: Accounts payable management, working capital, financial performance, cash flow, efficiency, credit policies, collection strategies, profitability, trade credit, , credit risk, debtor turnover, financial ratios, and receivables turnover.

Effect of Working Capital Management on Financial Performance of Savings and Credit Cooperative Societies in Sheema Municipality, Uganda

This study examines the impact of working capital management on the financial performance of Savings and Credit Cooperative Societies (SACCOs) in Sheema Municipality, Uganda. SACCOs play a vital role in Uganda's economic development, contributing to the country's GDP and providing financial services to a significant portion of the population. However, SACCOs have faced challenges in managing their working capital, particularly in cash management, accounts receivable management, and accounts payable management. The study employed a descriptive research design with a sample size of 106 respondents. The data was collected using questionnaires, and the study used multiple regression analysis to analyze the data. The findings indicated that cash management and accounts payable management had an insignificant effect on financial performance, while accounts receivable management had a significant effect. The study recommends the implementation of automated systems, effective internal controls, and staff training to improve SACCOs' working capital management. The research is valuable for government policymakers, scholars, and SACCO management teams. Keywords: Accounts receivable management, Cash management, Account payable management, Financial performance.

Effect of Cash conversion Cycle on Profitability: A case study of Binathman Household Supermarkets in Kenya

The objective of this research study is to investigate the relationship between the cash conversion cycle (CCC) and profitability in the context of Binathman Household Supermarket in Mombasa County. The study examines how the management of receivables, cash, payables, and inventories impact the supermarket's profitability. The literary examination scrutinizes antecedent research investigations that have explored the connection between managing working capital and profitability in various sectors. Theoretical frameworks, for example, the operating cycle theory and the trade-off theory of liquidity, give important insights into the variables that influence decisions on working capital and their impact on profitability. The study utilizes multiple linear regression analysis to evaluate the effect of inventory conversion, receivables conversion, and payables conversion on profitability. The study employs secondary data and measures profitability through return on assets (ROA). The research findings indicate a significant negative relationship between the cash conversion cycle and profitability. A shortened CCC leads to increased profitability by improving cash flow, reducing financing costs, and enhancing operational efficiency.

ACCOUNTS RECEIVABLE AND PAYABLE: CURRENT STATUS, PROBLEMS AND MANAGEMENT METHODS

The subject of the study is accounts receivable and accounts payable. The purpose of the study is to consider the state of receivables and payables in modern economic conditions, problems and methods of its management. The objectives of the study are to study the dynamics of the debt of economic entities, methods and methods of managing it, identifying problems of non-repayment in a timely manner and in full. The novelty of the study: the theoretical foundations of the management of receivables and payables, the problems of its occurrence are disclosed, and the dynamics and structure of debt are reflected on the basis of statistical information. Conclusions: the excess of accounts payable over accounts receivable, formed by enterprises operating in the country, was revealed; the problems of debt management and the need to improve methods of monitoring the fulfillment of obligations by counterparties are disclosed.

Working Capital Management and Financial Performance of Deposit Taking Savings and Credit Cooperative Societies in Central Region, Kenya

The goal of the investigation was to determine the effect of management of working capital on the financial performance of deposit-taking SACCOs in Central Region, Kenya. The investigation sought the impact of accounts receivable, accounts payable management, and cash management on performance. The theoretical literature review concentrated on conversion Cycle Theory, agency theory, transaction cost theory, and pecking order theory. The study adopted a causal research design. In this investigation, 27 DT SACCOs in Central Region, Kenya were the target population. Due to small and manageable size of the SACCOs, the study used a census. Five years of secondary data was collected (2017- 2021). The data was analyzed using descriptive, trend analysis and panel regression. The investigation indicated that cash management had a progressive and noteworthy coefficient of (β was 0.219, p was 0.000). The findings further confirms that accounts receivable management had a progressive and noteworthy influence on financial success of the SACCOs (β was 0.005, p=0.002). Further, accounts payable management had a negative and unworthy effect on financial success of the SACCOs (β was -0.004, p was 0.081). Government and the Ministry of Cooperatives could create policies that are fit for the execution of cash management and accounts receivable practices in SACCOs. This will enhance efficiency and uniformity in the adoption and use of working capital practices in SACCOs. SACCOs should invest more in cash management practices since it had the highest impact on financial performance. Also, the report suggests that SACCOs establish a norm of standard liquidity place to lower the risk of losses due to excess cash at the workplace, which could arm the performance of SMEs. However, SACCOs should not emphasize accounts payable since it did not affect their financial performance.

Transforming Accounts Payable Management: Harnessing the Power of AI-Embedded OCR and Digitalization in the Accounting Sector

Transforming Accounts Payable Management: Harnessing the Power of AI-Embedded OCR and Digitalization in the Accounting Sector

Management of receivables and payables as an element of ensuring the economic security of an enterprise: practical aspects

The article is devoted to the problem of the effectiveness of accounts receivable and accounts payable management in an enterprise. The object of the study is the LLC XXX leasing company that specialises in financial leasing of cars, road freight vehicles, specialised equipment and other items. Works on relevant subjects of Russian and foreign authors served as a theoretical basis of the study. The goal of the study is to prepare recommendations aimed at improving settlements with creditors and debtors, avoiding and minimising the number of overdue receivables and payables as well as improving the overall economic security of the enterprise. Based on the analysis and synthesis of the results obtained by the authors in previous studies, a set of recommendations was proposed. Their potential impact on the components of the enterprise’s economic security was assessed, and the results that can be achieved in case accounts receivable and accounts payable are properly managed were presented. The method of combining ABC analysis with accounts receivable aging reports, which gives a full picture of creditors and debtors, was described.

The Effect of Management of Receivables, Payables and Inventories on Manufacturing Companies of The Pharmaceutical Sub Sector Listed on The Indonesia Stock Exchange Period 2017 – 2021

The aim of this study is to identify how receivables turnover (RTO), payable turnover (PTO), and inventory turnover (ITO) affect profitability by using return on equity (ROE) as the measurement. The samples used in this study were pharmaceutical sub-sector manufacturing companies, that were listed on the Indonesian Stock Exchange for the 2017-2021 period. The independent variables used in this study are RTO, PTO, and ITO, while the dependent variable is return on equity (ROE). The analytical method used is the multiple linear regression model. The result of this study shows that RTO partially affects ROE, while PTO does not, and ITO fully does. Meanwhile, RTO, PTO, and ITO simultaneously affect ROE.

Working Capital Management Practices of Microenterprises in Lipa City as Predictors of Business Sustainability

Working capital management practices (WCMPs) are fundamental to any business operation to maximize operational efficiency, ensure optimum profitability, and achieve business sustainability. However, there was a clear gap in the literature that linked WCMPs to business sustainability with its three dimensions of performance - economic sustainability (ES), social sustainability (SS), and environmental sustainability EnvS. Thus, this study investigated the working capital management practices (WCMPs) including cash management practices (CMPs), accounts receivable management practices (ARMPs), inventory management practices (IMPs), and accounts payable management practices (APMPs), and their significant effects on ES, SS, and EnvS in 85 selected registered food microenterprises in Lipa City, Batangas. The results revealed that APMPs have a positive and significant effect on ES and SS while IMPs have a positive and significant effect on EnvS. Focusing on food microenterprises, the study also provided evidence that APMPs and IMPs play a profound impact on economic, social, and environmental sustainability. Therefore, this study proposed accounting processes, frameworks, and inventory management tools to optimize APMPs and IMPs as strategies to achieve business sustainability for food microenterprises.

MODELING THE PROCESS OF DEBT MANAGEMENT IN THE SYSTEM OF ADMINISTRATION OF FINANCIAL ACTIVITIES OF THE ENTERPRISE

The article considers topical aspects of managing receivables and payables of the enterprise as a prerequisite for improving payment discipline. The essence of debt management in the system of administration of financial activity of the enterprise, the economic nature of receivables and payables, the advantages and disadvantages of the formation of receivables and payables of the enterprise are studied. Part of the receivables and payables in the financial and economic activities of the enterprise is inevitable and must be within acceptable limits, respectively, not to cause financial risks that may cause bankruptcy. The article emphasizes the need for rational and sound management of receivables and payables, as it has a direct impact on the effective functioning and development of the enterprise, the level of its financial results and image among partner companies. The reasons for the formation and impact on the activities of enterprises receivables and payables are outlined. Factors influencing the amount of accounts payable are considered. The main tasks of receivables and payables management of the enterprise are researched and formulated. The system of measures for management of receivables and payables of the enterprise is investigated and generalized. the company needs to form a certain model of business process management. In order to increase the efficiency of receivables and payables management at enterprises, a structural and functional model of the company's receivables and payables management process has been developed. The conceptual directions of improving the management of receivables and payables are given and the need to strengthen the practical component of the proposed recommendations is emphasized.

Working Capital Management and Financial Performance of Small and Medium Enterprises in Garissa County, Kenya

Small and medium-sized enterprises (SMEs) in the County of Garissa have had a dwindling net profit between 2007 until 2013. Success has been marked by several hurdles that include improper business records, substandard technical competence, illiteracy in matters of finance, and mismanagement of working capital. As a result, the overarching purpose of the study was to investigate the influence of working capital management on the financial performance of SMEs in the Kenyan county of Garissa. The study was motivated by the following specific goals: To assess the impact of inventory management techniques on the financial performance of SMEs, to assess the impact of cash management practices on the financial performance of SMEs, to assess the impact of debtor management practices on the financial performance of SMEs, and to assess the impact of accounts payable management practice. According to the county administration of Garissa, 243 SMEs were targeted. A sample of 149 SMEs were selected using simple random sampling. According to the county administration of Garissa, 243 SMEs were targeted. Simple random sampling was used to draw a total of 149 SMEs. Secondary data was evaluated using quantitative methods. Tables were used to present the data. According to the study's regression results, accounts receivable management had a minimal influence on return on assets. Inventory management has a major detrimental impact on SMEs' financial performance. Cash management has a beneficial and considerable impact on the performance of SMEs. The study concluded that managers could increase return on an asset through shortening inventory turnover and increasing accounts payable days.

Т. В. Стеценко, А. Ю. Лукіша ВДОСКОНАЛЕННЯ СИСТЕМИ ОЦІНКИ БЮДЖЕТНОЇ БЕЗПЕКИ ОРГАНІВ МІСЦЕВОГО САМОВРЯДУВАННЯ

The purpose of the article is to develop proposals for improving the methodology for assessing the level of budget security of local governments. Methodology of research. The following methods were used in the study: analysis and synthesis, generalization, comparison, methods of statistical research. Findings. We made proposals to improve the methodology for calculating the budget security index of local authorities by adjusting the threshold values of some indicators and the inclusion / removal of indicators. It is proposed to exclude from the budget security index the indicator "Share of non-target transfers (without additional subsidy) in the total amount of intergovernmental transfers" and add indicators "Deficit of local budgets to GDP / GRP", "Dynamics of growth of loans from the United treasury account to cover temporary cash gaps by the United treasury account","Growth rates of violations of budget legislation", "Dynamics of tax debt". We also propose to include in the indicators related to the management of receivables and payables of budgetary institutions, as their increase may indicate the presence of the following threats: low quality of budget planning, low budget discipline, problems with the budget accounting system, etc. However, the lack of statistics in the public domain did not allow to further expand the list of budget security indicators. In comparison with the values of the index calculated by S. Boyko and J. Dyachuk on the basis of their all 12 indicators, the index after the author's adjustment became more sensitive to threats not only to the external macro-environment, but also to internal threats to the budgetary security of a particular local government. Practical value. The use of the proposed improved method of calculating the budget security index at the meso level will improve the quality of risk management of local governments in the budget sphere. This methodology is suitable for assessing the level of budget security as a generalization of all local authorities in Ukraine, and for assessing the appropriate level of a particular local authority.

СЛОЖНОСТИ УПРАВЛЕНИЯ ДЕБИТОРСКОЙ И КРЕДИТОРСКОЙ ЗАДОЛЖЕННОСТЬЮ В УСЛОВИЯХ ПАНДЕМИИ

Initially, partnership business activities are based on such components as receivables and payables, since this is one of the main components in the financial policy of the enterprise. At the moment in Russia, small and medium-sized businesses are the main, most important ways of doing business. Thus, more than 6 million entities operate in small and medium-sized businesses, which make it possible to provide jobs for almost 15 million citizens. The pandemic, which has continued throughout 2020-2021, has had a significant impact on the socio-economic level of development of our country, while facing the negative dynamics of key macroeconomic indicators in almost all areas of business activity. The pandemic, like any other type of economic crisis, not only made a certain complete circle in its manifestation of the crisis, but also began to move with renewed vigor in the second wave, raising the forecasts of a possible third wave that are obvious in this case. The novel coronavirus infection (COVID-19) pandemic has led to global changes in the economy, which have serious financial, operational and, as a result, social and consequences. In order to contain the spread of the virus in the Russian Federation, a self-isolation regime was introduced, which sharply limited the possibility of doing business for enterprises, which negatively affected, first of all, the work of small and medium-sized businesses. In short, the pandemic has had a huge impact on all aspects of society and the economy as a whole. During the pandemic, there was a drop in the growth rate of the national economy, as well as a decrease in real incomes of the population and a decrease in entrepreneurial activity caused by difficulties in starting a business, as well as a decrease in consumer demand. The article discusses the features of managing receivables and payables during the pandemic, as well as the problems and difficulties that have arisen in the management of receivables and payables during the fight against coronavirus infection.

FEATURES OF ACCOUNTING FOR CREDITORS IN THE ENTERPRISE

The article is devoted to the theoretical and methodological foundations and practical issues of improving the quality and efficiency of the management of payables of enterprises with the aim of increasing profitability, solvency, financial stability and overcoming the crisis of non-payments. For the economic security and stability of the company’s activity, the topic of research and identification of ways of managing accounts payable is relevant. The article discloses topical issues of receivables and payables management that contribute to the sustainable development of a business entity. The stages and main models of payables and receivables management are considered. The main advantages and disadvantages of debts for the enterprise are determined. The article also discusses modern approaches to the economic content of accounts payable. The composition and structure, causes of occurrence, terms of creation and terms of their existence and repayment are analyzed. The directions and methods of managing receivables and payables and their ratio are outlined.