Home Production: Business Ideas
To get a decent income it is not necessary to work for someone and sit out every day in a "musty" office under the gaze of a stern Cerberus boss,…

Continue reading →

How to start your own business - ideas and technologies
In those moments when a person decides to stop working “for an uncle” and do something of his own, quite logical questions arise: “Where to start? What is needed for…

Continue reading →

Types of receivables
Accounts receivable (accounts receivable) is the amount of money that third parties must pay. It is a dynamic option for moving working capital. Accounts receivable from virtually any enterprise or…

Continue reading →

Types of receivables

Accounts receivable (accounts receivable) is the amount of money that third parties must pay. It is a dynamic option for moving working capital. Accounts receivable from virtually any enterprise or commercial organization.

Types of receivables

In accounting, receivables are recorded in the total amount of cash in relation to legal entities and individuals. This debt depends on the financial policy applied by the company regarding its customers or other business partners.
Receipt of the receivables to the account of the enterprise is one of the main articles of profit of the enterprise. The less time intervals that should be fixed in the contract are agreed, the more efficient the increase in equity will occur.

The receivable, in its essence, is divided into 2 main types:

. normal

. unjustified.

Under normal debt, it means obtaining commercial loans. Moreover, in the conditions of the loan, the loan term and the date of making regular payments should be clearly defined.

Unjustified, may arise in the case when the debtors violate the estimated terms. This can negatively affect the entire financial condition of the organization. To exclude the occurrence of unjustified debt, the following actions should be taken by the organization’s managers:

. debt analysis;

. determination of the maturity established by the contract;

. analysis of the financial condition of the consumer of goods / services;

. development of a unified policy, according to which funds overdue for payment will be collected;

. formation of a reserve fund of the enterprise, which will help to avoid the occurrence of own debts on loans.

The receivable is also divided by its maturity. Distinguish short-term and long-term debt. In the short-term, repayment of debt should occur throughout the calendar year from the end of the repayment period. In case of long-term delinquencies, the repayment of funds occurs no earlier than a year after the established payment date.

Write-off of receivables

In order not to distort the financial statements and provide the company with a stable financial position, it is imperative to demand a return of the debt. First, such a claim must be in the form of a claim. If these actions do not lead to results, then with all outstanding requirements it is necessary to apply to the court.
The internal financial policy of any enterprise should include monitoring and analysis of debt of debtors. In the event that the amount of the debts of all partners is ascertained, a requirement to pay them must be set. The next step is to make sure that all settlements with the counterparty are reconciled. Then, when the statute of limitations for the return of the debt is missed or the debtor company has been liquidated, the amount of outstanding funds will have to be written off.

An organization may create a reserve fund for bad debts as long as time goes by to rehabilitate the borrower’s solvency. If debts are written off to the organization’s loss due to the debtor’s inability to repay them, the debt funds themselves cannot be canceled. The amount of these funds should “hang” on the balance sheet of the company for a period of 5 years. But it should be monitored for the possible likelihood of a return of lost funds, if suddenly the financial condition of the non-payer changes for the better.

It is mandatory to conduct an inventory of receivables. As a result of these actions, the identification of doubtful debts or that which is not possible to recover may occur. You should regularly monitor the statute of limitations, so as not to miss the time of their expiration.

Also, it should evaluate the effectiveness of their financial condition, which will help maintain the efficiency of the entire organization. Moreover, it is required to assess the degree of accounts receivable and the possible dynamics of its movement in previous periods.

Accounts receivable sooner or later arise from each entrepreneur or head of the organization. The more he gains experience in managing the organization’s risks and the faster he understands the market environment, the sooner he will learn to minimize the risks of non-payment. This will help the company to work more efficiently and be financially sustainable.

Business on the execution of other people's whims
Yulia Lukoyanova, a graduate of MGIMO, a very charming and pleasant girl, opened her own concierge service in Moscow, which fulfills the desires of wealthy residents of the capital, and…


How to independently issue online loans over the Internet
Today you can earn almost everything. This is possible thanks to a fairly flexible economy and earnings policy. And, by the way, you can earn income even on your own…


300 grams business or how to open during a crisis
A crisis that only about him have not been written over the past six months. On the Internet you can find a huge number of articles, blogs and videos on…


The choice of equipment for catering - do not spend too much, we get the right
The restaurant business has attracted novice entrepreneurs for more than a decade. It's not about high profits and quick paybacks. Interest lies in the non-material plane. His institution is a…