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Izvestia Journal of the Union of Scientists - Varna. Economic Sciences Series

Accounts receivable management as part of the entity`s financial management

Galina Sabcheva

Abstract

Accounts receivable management as part of working capital management stands out as entity`s financial management integral part. Its significance is result by the relationship between accounts receivable and the liquidity level, cash flows and solvency. The article focuses on the main stages on which accounts receivable is based: assessing client creditworthiness, accounts receivable monitoring and debt collecting. Accounts receivable management is based on the interdisciplinary approach that emphasizes accounting, legal, financial and management analysis. It outlines the need to develop a precise, detailed and comprehensive credit policy that is consistent with client credit analysis procedures, with clearly defined duties and responsibilities. Covering all stages the policy should ensure the entity`s interests protection by control over customer claims. Given the limited size of the article beyond its scope stayed a variety of aspects that could be addressed in depth in the future.


Keywords

receivables; accounts receivable management; financial management; credit policy; efficiency

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