Accounts receivable are the amount of debts due to the enterprise, company or institution from other individuals who are their debtors or debtors. Accounts receivable arise if the company was provided with certain goods and services, and the money was never received for them. Several effective methods will help reduce receivables.
1
The database built according to all the Rules and a statistical analysis of information on the execution by the other party of their contractual obligations will make a decision on the provision of funds. To be confident in the reliability of the client, you need to assess on the basis of the deadline for working with the client, sales, as well as the availability of debts. It is necessary to insure yourself from the risks by including fines for untimely payment in the contract.
2
The accrual of fines and penalties for overdue payments is one of the most effective methods to reduce receivables. The debt repayment schedule must be spelled out in the contract. A good motivating factor may be the discounts for timely payment of goods.
3
The staff must be properly motivated so that each employee of the company is interested in reducing the level of debt. The system of bonuses and fines is also suitable here. For example, employees can be boned not only for fulfilling a plan for sales, but also for fulfilling contractual obligations by a counterparty. Deprivation of bonuses, reprimands, warnings should be carried out to employees for violation of the regulations and the procedure for monitoring receivables. All these conditions can be stipulated in regulatory documents.
4
In order to effectively manage receivables, it is necessary to regulate the process and provide the organization’s employees with such conditions that they can work according to the regulations. The organizations should have standards for the control of receivables and statistics are conducted in comparison with the actual results with standard ones.
5
In the event of receivables or final non -return of funds with the counterparty, negotiations need to be held, and reliable information about his solvency. The organization has the right to demand the return of the debt in a judicial or insurance procedure.
Accounts receivable are part of the marketing policy and enterprise current assets aimed at increasing the scale of the sale of products and monitoring the magnitude of this debt.
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