应收账款管理外文文献.docx

应收账款管理外文文献.docx

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应收账款管理外文文献

MANAGEMENTOFACCOUNTSRECEIVABLE

INACOMPANY

Abstract

Accountsreceivablemanagementdirectlyimpactstheprofitabilityofacompany.

Firstly,thepurposeoftheempiricalpartofthestudyistoanalyzeaccounts

receivableandtodemonstrateacorrelationbetweentheaccountsreceivablelevel

andprofitabilityexpressedintermsofRetunonAssets（ROA）of

companies.Secondly,theaimoftheoreticalresearchistoexplorecostand

benefitsofchangesincreditpolicy,determinetheindependentvariableswhich

haveanimpactonnetsavingsandestablisharelationshipamongtheminorder

todevelopanewmathematicalmodelforcalculatingnetsavingsfollowinga

revisionofcreditpolicy.Onthebasisofresearchresult,amathematicalmodelfor

calculatingnetsavingsandfollowingarevisionofcreditpolicy,hasbeen

developedandwiththismodelacompanycanconsiderdifferentcreditpoliciesas

wellaschangesincreditpolicyinordertoimproveitsincomeandprofitability

andestablishacreditpolicythatresultsinthegreatestnetprofitability.

Keywords:

accountsreceivable,profitability,netsavings,creditpolicy

21

sample

EKON.MISAOPRAKSADBK.GODXXII.（2013.）BR.1.（21-38）Kontuš,E.:

MANAGEMENTOFACCOUNTS...

1.

INTRODUCTION

Accountsreceivableisthemoneyowedtoacompanyasaresultof

havingsolditsproductstocustomersoncredit.Theprimarydeterminantsofthe

company'sinvestmentinaccountsreceivablearetheindustry,theleveloftotal

salesalongwiththecompany'screditandthecollectionpolicies.

Accountsreceivablemanagementincludesestablishingacreditand

collectionspolicy.

Creditpolicyconsistsoffourvariables:

creditperiod,discountsgivenfor

earlypayment,creditstandardsandcollectionpolicy.Thethreeprimaryissuesin

accountsreceivablemanagementaretowhomcreditshouldbeextended,theterms

ofthecreditandtheprocedurethatshouldbeusedtocollectthemoney.

Themajordecisionregardingaccountsreceivableisthedeterminationof

theamountandtermsofcredittoextendtocustomers.Thetotalamountof

accountsreceivableoutstandingatanygiventimeisdeterminedbytwofactors:

thevolumeofcreditsalesandtheaveragelengthoftimebetweensalesand

collections.Thecredittermsofferedhaveadirectbearingontheassociatedcosts

andrevenuetobegeneratedfromreceivables.Ifcredittermsaretight,therewill

belessofaninvestmentinaccountsreceivableandfewerbaddebtlosses,butthere

willalsobelowersalesandreducedprofits.

Wehypothesizethatbyapplyingscientifically-basedaccountsreceivable

managementandbyestablishingacreditpolicythatresultsinthehighestnet

earnings,companiescanearnasatisfactoryprofitaswellasareturnoninvestment.

Thepurposeofthisstudyistodeterminewaysoffindinganoptimal

accountsreceivablelevelalongwithmakingoptimumuseofdifferentcredit

policiesinordertoachieveamaximumreturnatanacceptablelevelofrisk.In

strivingtofillinthegapsrelatingtonetsavingsfromchangesincreditpolicy,

thestudymakesitsowncontributiontoresearchandtherebytomanagersby

givingthemgeneralrecommendation.Withtheaimofcompletingthesegaps,the

studywillinvestigateaccountsreceivables,theirmanagementandexplorecosts

andbenefitsfromchangesincreditpolicyaswellasnetprofitability.

Whenacompanyisconsideringchangesinitscreditpolicyinorderto

improveitsincome,incrementalprofitabilitymustbecomparedwiththecostof

discountandtheopportunitycostassociatedwithhigherinvestmentinaccounts

receivable.

Theoutcomerepresentsanewmathematicalmodelforcalculatingnet

savingsfromchangesincreditpolicyandwiththismodelacompanycanconsider

differentcreditpoliciesaswellaschangesincreditpolicyinordertoimproveits

incomeandprofitability.

22

EKON.MISAOPRAKSADBK.GODXXII.（2013.）BR.1.（21-38）Kontuš,E.:

MANAGEMENTOFACCOUNTS...

2.

LITERATUREREVIEW

2.1.

Accountsreceivablemanagement

Accountsreceivablerepresentsasizablepercentageofmostfirms'assets.

Investmentsinaccountsreceivable,particularlyformanufacturingcompanies,

representasignificantpartofshort-termfinancialmanagement.Firmstypically

sellgoodsandservicesonbothcashandacreditbasis.Firmswouldrathersellfor

cashthanoncredit,butcompetitivepressuresforcemostfirmstooffercredit.The

extensionoftradecreditleadstotheestablishmentofaccountsreceivable.

Receivablesrepresentcreditsalesthathavenotbeencollected.Asthecustomers

paytheseaccounts,thefirmreceivesthecashassociatedwiththeoriginalsale.If

thecustomerdoesnotpayanaccount,abaddebtlossisincurred

1

.

Whenacreditsaleis