STRATEGIES FOR IMPROVING ACCOUNTS RECEIVABLE MANAGEMENT
Keywords:accounts receivable, impact factors, collection of receivables, accounts receivables management, accounts payable, solvency
The paper offers an overall analysis of the level and dynamics of accounts receivable at Ukrainian enterprises by types of economic activity. A critical role in accounts receivable management is assigned to identification of factors affecting its occurrence. Hence, the factors of internal and external environment that may influence the size of receivables and provide the information basis for managerial decisions to reduce its net volume and simultaneously its share within the current assets have been explored. During the study, modern system theories in the area of finance and financial management as well as statistical analysis methods, in particular, comparative analysis and statistical comparisons methods were employed. The factors affecting their increase in the current assets have been revealed. Management solutions to resolve the above issues based on the factors facilitating prompt collection of receivables have been proposed. It is argued that accounts receivable makes a specific form of lending without interest, expiry date, and penalties. For its maintenance it is recommended to apply an interest rate and set payment term, and in the case of breaching the contract – to charge a fine. Regardless of the choice of the method of accounts receivable management, it is important to consider the impact factors (both external and internal). Receivables management will be effective only when the company will pay due attention to the specific characteristics of the above asset, its classification features, and identify the most significant factors that may affect its size in future.