Skvortsov E.N.

Ogarev Mordovia State University, Russia

CONSTRUCTING OF EFFECTIVE SYSTEM OF ACCOUNTS RECEIVABLE MANAGEMENT IN THE ORGANIZATION

The liquidity of the current assets is the main determinant of the risk of investing in working capital. Accumulated assess of feasibility of different types of working capital over a long period of time can determine the probability of risk of investments in these assets. In order to minimize the risks associated with accounts receivable, the organization needs a comprehensive approach for accounts receivable management.

Construction of such system in the organization should consist of four stages (Figure 1).

Figure 1 - Stages of constructing of accounts receivable management system in organization

Step 1. Analysis of accounts receivable (next - AR) structure. At this stage, the focus should be on common approaches of AR analysis of organizations, common sharing of AR in structure for understanding the “state” of AR and decisions on further work. At specified intervals specialists of organizations should analyze accounts receivables of personal list of counterparties, terms of formation

and size; control settled payments deferred or overdue, assess the tangibility of presence of the accounts receivables, to determine ways of accelerating demand debt and reducing bad debt.

The analysis may include an evaluation of the absolute and relative indicators of the structure and movement of accounts receivables.

Additional information may be taken from rankings of accounts receivables depending on terms of its origin, such as the 30-day intervals, and analysis of its change. To do this, it should be selected the share of bad debts and its dynamics considered. The growth will indicate the increasing of risk of non-repayment of accounts receivables and the possibilities of overdue debts formation.

Operational information about the current debt, including the period overdue debt, the history of relationship with the customer, the amount and regularity of their ongoing purchases, its share in revenues and gross profit, the number of violations of the terms of payment in the previous periods is very important.

And finally, it should be calculated the actual accounts receivable with the rate of inflation and depreciation during the late payment, collection period, losses from not collected payments and write-offs.

The analysis of accounts receivable should be considered when company plans its future activities.

It is recommended to create some reports in CRM, 1C or simply analyze arrays debtors on the Excel for the analysis of AR. Basic information: the date of conclusion, date of payment, the amount of contracts, customer category, etc.

Step 2. Choice of responsible persons (department) for work with AR. At this stage, the attention should be paid to choosing of the company`s organizational structure to work with the AR: the pros and cons of the various responsible persons; the motivation for action; the control center for work with the AR.

Step 3.Organization of working with the accounts receivable. At this stage the attention should be focused on the transition from the issues of deciding who work with AR to how the work will take place at the organizational level, at the mechanism level, rules of interaction, at the methods regulation and control:

a) the creation of business processes, policies and procedures for managing the AR;

b) the formation of a balanced indicators of performance units (next - IPU);

c) the development of schemes of motivation based on the IPU, the creation of job descriptions, training of staff responsible for working with the AR;

d) the creation of system of control and internal management reporting in CRM for financial analysis and evaluation of the work of specialists: the choice of performance indicators for the analysis of responsible staff ('the impact of calls ", the number of calls and meetings, written letters, paid bills, etc). Ideal option for company will be the situation when the supervision of staff and indicators of AR could be carried out automatically by means of reports in CRM systems.

Step 4. Methods of work with the AR. This step includes: customer calls, writing letters, the interaction with accountants of company to prepare the documents for the client, meeting with clients, negotiating, recording information about working with AR. Benefits of prejudicial settlement of debt - is the lack of additional costs associated with going to court without prejudice for reputation and partner`s relationship. The financial methods of influence on the debtors with delay in payment include: the application of penalties, proposals for offsets, debt restructuring, sale of debt, initiation of bankruptcy proceedings, etc.

In case of futility of all reasonable actions the organization can collect the debt through the court. Usually going to court results breaking of the partnership, but also can be the beginning of a constructive dialogue with the debtor. In the future, new debtors, knowing that the debt provider always resolves disputes through the court will try to avoid delay in payment.

Summing up, it should be noted that the increase in the liquidity of current assets organization can be achieved by constructing of system of accounts receivable management, this work should be carried out in stages: stage 1 - analysis of the structure of the accounts receivable; stage 2 - the choice of responsible entities (departments) to work with accounts receivable 3 stage - organization of work with accounts receivable; stage 4 - methods of work with the accounts receivable.