Accounts Receivable Management as Part of the Entity`s

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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. JEL Code:M410

(Graydon n.d.). 1 -

(Paramasivan & Subramanian 2009)

(Paramasivan & Subramanian 2009; ACCA & F9 2017)

2.

-

1

(CFO n.d.). 2

IZVESTIA JOURNAL OF THE UNION OF SCIENTISTS - VARNA

126 ECONOMIC SCIENCES SERIES, vol.7 2018

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-(Kallberg & Saunders 1983; Gentry & De La Garza 1984; Carpenter & Miller 1979; Gallinger & Ifflander 1986; Lewellen & Johnson 1972; Lewellen & Edmister 1973; Stone 1976)

3.

1.

Kimani (Kimani 2013)

Kimani

(Kimani 2013)

Senzu Ndebugri (Senzu & Ndebugri 2009).

(Lyani 2017). Ngugi

(Ngugi 2014)4:

3 772

(Enterprise n.d.).

4

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2.

(Shezad L. & Clifford W. 1992)

(G Michalski 2008)

(Graydon n.d.):

2.1.

(ACCA & F9 2017; Bryk et al. 2014)

-



(ACCA n.d.):

5;

2.2.

- (Carpenter & Miller 1979; Gentry & De La Garza 1987; Gentry & De

La Garza 1984)

-

--

(CIMA 2010)

- -

- 5

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2.3.

. (ACCA n.d.):

(G. Michalski 2008b; G. Michalski 2008a)) -(ACCA & F9 2017; Paramasivan & Subramanian 2009; Rangarajan 2005)

- -

.

. 3.



2.

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Accounts Receivable Management as Part of the Entity`s