Analysis of the company's receivables table. Coursework: Analysis of accounts receivable. Examples of remote sensing analysis

Analysis of receivables and payables using the example of the company Tipar LLC

Analysis of the structure and dynamics of receivables and payables

Studying the nature of changes in accounts receivable and payable in dynamics and structure over a number of years allows us to judge not only the strengthening or weakening of executive discipline in the settlements of Tipar LLC with suppliers and contractors, buyers and customers.

The analysis usually begins with a comparison of accounts receivable and accounts payable indicators at the beginning and end of the analyzed period.

During the analysis, it is necessary to determine the share (share) of receivables and payables in the composition of the property (assets) and obligations (liabilities) of the enterprise. The necessary data and calculations are given in Table 2.1.1.

Table 2.1.1 Change in accounts receivable and payable as part of working capital for 2009-2010. using the example of Tipar LLC

Indicators
Total amount of working capital, rub.
Accounts receivable
Accounts payable in % of the total amount of working capital

From those given in table 2.1.1. The data shows that accounts payable account for more than half of the property and liabilities of the enterprise. In 2010, compared to 2009, the share of accounts receivable at the beginning of the year increased by 14.2% and amounted to 16.7%; at the end of the year, compared to the end of 2009, it also increased by 7.8% and amounted to 24.5%. This indicates untimely payments and the need to strengthen the discipline of settlements with customers. This will lead to increased difficulties in repaying the debt obligations of the enterprise itself, i.e. its accounts payable.

For 2010 compared to 2009, the share of accounts payable at the beginning of 2010 increased by 10.7% compared to 2009 and amounted to 76.2%; at the end of the year compared to the end of 2009 decreased by 21.6% and amounted to 54.6%. An increase indicates late payments and settlements with suppliers and contractors, and a decrease indicates partial coverage of one’s debt to creditors.

For a more detailed analysis, we will assess the structure and dynamics of debt by element.

An analysis of the structure and dynamics of accounts receivable is given in Table 2.1.2.

Table 2.1.2 Analysis of the structure and dynamics of accounts receivable for 2009-2010 using the example of Tipar LLC

Accounts receivable by element

at the beginning of the year

at the end of the year

deviations

at the beginning of the year

at the end of the year

deviations

I Short-term, incl. buyers and customers budget calculations social settlements funds other debtors including expired from it lasting over 3 months II Long-term

Total accounts receivable

From the data given in table 2.1.2 it is clear that all receivables of Tipar LLC are short-term.

In 2009, it increased by 130,507 rubles. or 508% and amounted to 156,194 rubles. At the same time, due to an increase in the debt of buyers and customers by 141,564 rubles. the weight of which in the total amount of receivables is 91%;

actual transfers to the budget for 404 rubles. whose weight is 0.3%;

transferred amounts of social payments. insurance for 3 rubles, which amount to 0.002% of the total amount of receivables;

reducing the debt of other debtors by 11,464 rubles. or by 44.6%, beats. the weight of which decreased by 91% and amounted to 9% of the total amount of receivables.

In addition, in 2009 an overdue debt amounted to 84,479 rubles. from it lasting more than 3 months 84,479 rubles, spec. weight in the total amount of receivables is 54%.

In 2010, compared to 2009, accounts receivable increased by 216,476 rubles. or by 138.5% and amounted to 372,670 rubles. At the same time, due to an increase in the debt of buyers and customers by 29,045 rubles. or by 20.5%, which amounted to 170,609 rubles, spec. the weight in the total amount of receivables decreased by 45% and amounted to 46%;

increase in amounts in settlements with the budget by 159,469 rubles, which amounted to 159,873 rubles, per cent. the weight increased by 42.7% and amounted to 43%.

Share of payments via social networks funds are not included in the total amount of receivables, i.e. with social funds have made all calculations.

The debt to other debtors increased by RUB 27,965. or by 70.3% and amounted to 42,188 rubles, per cent. the weight in the total amount of receivables increased by 2% and amounted to 11%.

The amount of overdue debt increased by 12,586 rubles. or 14.9% and amounted to 97,065 rubles, this debt is over 3 months in duration. At the same time, beat. the weight in the total amount of receivables decreased by 28% and amounted to 26%.

From the given data and calculation results it is clear that accounts receivable increased to the greatest extent due to an increase in debts of buyers and other debtors. This indicates the carelessness of the credit policy of Tipar LLC in relation to customers. The appearance of overdue debt indicates an increase in the risk of non-payment of debts and a decrease in profits. In addition, this leads to a slowdown in capital turnover.

The dynamics of accounts receivable, the intensity of its increase or decrease, has a great influence on the turnover of capital invested in current assets, and, consequently, on the financial condition of the enterprise and its solvency.

Next, it is necessary to analyze the structure of accounts payable, identify the reasons for its changes, paying special attention to the dynamics of the state of debt to personnel for wages, to the budget for payments. The necessary data and calculations are given in Table 3.

From the data given in Table 2.1.3 it is clear that all accounts payable at Tipar LLC are short-term.

In 2009, it increased by 50,650 rubles. or by 7.6% and amounted to 713,492 rubles. Among other things, the changes occurred due to an increase in debt to suppliers and contractors by RUB 74,781. or by 29% and amounted to 330,677 rubles, spec. weight in the total amount of accounts payable amounted to 46%, the share in 2009 increased by 7%. At the same time, suppliers and contractors make up the largest share of the total amount of accounts payable.

Also, by reducing debt to staff by 19,902 rubles. or by 39.5%, after which the debt amounted to 30,555 rubles, per cent. weight decreased by 3.3% and amounted to 4.3%;

debt to social services funds decreased by 5203 rubles. or by 28.8% and amounted to 12,856 rubles, per cent. weight decreased by 0.9% and amounted to 1.8%.

These changes indicate that the company has reduced its debt to personnel due to the acquisition of a more stable financial position.

Also due to an increase in debt to the budget by 6981 rubles. or by 36%, which amounted to 26,425 rubles. the weight in the total amount of accounts payable increased by 0.8% and amounted to 3.7%;

reducing debt on advances received by 7684 rubles. or by 2.4%, which amounted to 311,238 rubles. weight decreased by 4.4% and amounted to 43.6%. Due to an increase in debt to other creditors by 1677 rubles, which amounted to 1741 rubles, per cent. the weight increased by 0.19% and amounted to 0.2%. In addition, during the year an overdue debt arose, the duration of which was over 3 months and amounted to 146,506 rubles, its share. weight in the total amount of accounts payable was 20.5%.

The appearance of this debt signals that the company is not making timely payments to its creditors, which can lead to a loss of confidence in the company and increases the risk of bankruptcy.

In 2010, compared to 2009, accounts payable increased by 116,951 rubles. or by 16.4% and amounted to 830,443 rubles. At the same time, due to an increase in debt to suppliers and contractors by 22,433 rubles. or by 6.8%, which amounted to 353,110 rubles. weight decreased by 3.8% and amounted to 42.5%;

due to an increase in debt to personnel by 27,119 rubles. or by 88.6%, which amounted to 57,674 rubles. weight increased by 2.6% and amounted to 6.9%;

due to an increase in debt to social services. funds for 2096 rubles. or by 16.3%, which amounted to 14,952 rubles. weight in the total amount of accounts payable was 1.8%;

by reducing debt to the budget by 18,164 rubles. or 68.7%, which amounted to 8261 rubles. weight decreased by 2.71% and amounted to 0.99%;

due to an increase in debt to other creditors by 2955 rubles. or by 169.7%, which amounted to 4696 rubles. weight increased by 0.4% and amounted to 0.6%.

These upward changes may have appeared under the influence of the amounts of overdue debt formed in the previous period.

There were no amounts of overdue debt for 2010. This indicates that Tipar LLC made settlements for accounts payable amounts in a timely manner, in accordance with the agreed settlement terms.

Although accounts payable are usually assessed as a source of short-term cash raising, one cannot be guided by the principle “the more the merrier.” There are economic and ethical limits to debt to creditors. For a long time it was believed that the optimal ratio of equity and borrowed funds should be in the proportion of 60:40. This guarantees the provision of accounts payable, timely repayment of debts and at the same time relieves the debtor company from the threat of debt dependence. In any case, accounts payable should be used for rational investment in the most liquid assets that generate maximum income.

Table 2.1.3. Analysis of the structure and dynamics of accounts payable for 2009-2010. using the example of Tipar LLC

Accounts payable by element

at the beginning of the year

at the end of the year

deviations

at the beginning of the year

at the end of the year

deviations

I Short-term, incl. suppliers and contractors debt to the organization's personnel debt to social funds debt to the budget advances received other creditors including expired of which more than 3 months II Long-term

Total accounts payable

The significant share of accounts receivable in the composition of current assets (in our example, more than 40%) determines their special place in the assessment of working capital turnover. The amount of accounts receivable on the balance sheet is affected by:

The volume of sales and the share of sales in it on terms of subsequent payment. As revenue grows, as a rule, accounts receivable balances also grow;

Terms of settlements with buyers and customers. The more preferential payment terms are provided to buyers (increasing terms, reducing requirements for assessing the reliability of debtors, etc.), the higher the balance of accounts receivable;

Accounts receivable collection policy. The more active an enterprise is in collecting receivables, the smaller its balances and the higher the “quality” of receivables;

Payment discipline of buyers. The objective reasons that determine the payment discipline of buyers and customers should be the general economic condition of the industries to which they belong. The crisis state of the economy, mass non-payments significantly complicate the timeliness of payments, lead to an increase in the balance of unpaid products, instead of cash, surrogates are used as means of payment. Subjective reasons are determined by the terms of the loan and the measures taken by the company to collect receivables: the more favorable the terms of the loan, the lower the payment discipline of debtors;

The quality of accounts receivable analysis and consistency in the use of its results. If the state of analytical work at the enterprise is satisfactory, information should be generated on the size and age structure of accounts receivable, the presence and volume of overdue debt, as well as specific debtors, the delay in settlements with which creates problems with the current solvency of the enterprise.

In the most general form, changes in the volume of accounts receivable for the year can be characterized by balance sheet data. For the purposes of internal analysis, analytical accounting information should be used: data from order journals or replacement statements of accounts of settlements with buyers and customers, with suppliers for advances issued, accountable persons, and other debtors. It is convenient to present information on the status of settlements with buyers and customers in the form of a table (Table 27).

Table 27

Information on the status of settlements with buyers and customers

Buyer (customer)	Date of debt creation	Debt at the beginning of the period	Shipped	Paid	Debt at the end of the period
date	sum	date	sum
PA "Tavria"	25.12.97	104 300	-	-	-	-	104 300
JSC "Temp"	06.03.98	710 000	-	-	-	-	710 000
MP "Suite"	02.10.98	1 197 000	-	-	01.12	1 197 700	-
JV "Song"	05.10.98	1 000 000	-	-	-	-	1 000 000
NPO "Cryogen"	-	-	01.12	480 00	18.12	480 000	-
JSC "Vega"	-	-	02.12	280 000	02.12	280 000	-
JV "Utah"	-	-	02.12	850 000	16.12	850 000	-
MP "Nadezhda"	-	-	04.12	558 900	-	-	558 900
Software "Smena"	-	-	05.12	180 000	25.12	180 000	-
JSC "Salut"	-	-	17.12	1 500 000	-	-	1 500 000
TOTAL	-	3 012 000	-	3 848 900	-	2 987 700	3 873 200

From the data in table. 27 it follows that the amount of accounts receivable from buyers and customers as of January 1, 1999 amounted to 3,873,200 thousand rubles. (3,012,000 + 3,848,900 - 2,987,700), including debt with a period of more than a year - 104,300 thousand rubles, for a period of more than 9 months - 710,000 thousand rubles.

To summarize the results of the analysis, a summary table is compiled in which receivables are classified according to the period of formation (Table 28).

Table 28

Analysis of the status of accounts receivable by period of formation,

thousand roubles.

	Total at the end of the year	Including by terms of education
up to 1 month	from 1 to 3 months.	from 3 to 6 months.	from 6 months up to a year	more than a year
Accounts receivable for goods, works and services	3 873 200	2 058 900	1 000 000	-	710 000	104 300
Other debtors	514 500	514 500	-	-	-	-
including:
overpayment of deductions from profits and other payments	-	-	-	-	-	-
debt due to accountable persons	-	-	-	-	-	-
other types of debt	514 500	514 500	-	-	-	-
including
according to payments to suppliers	514 500	514 500	-	-	-	-
Total accounts receivable	4 387 700	2 573 400	1 000 000	-	710 000	104 300

Analysis of the age structure of receivables gives a clear picture of the state of settlements with customers and allows you to identify overdue debts. In addition, it greatly facilitates the inventory of the state of settlements with debtors, making it possible to assess the activity of the enterprise in collecting receivables and its “quality”.

It would be incorrect to give general instructions about what period of delay in payment allows a debt to be classified as doubtful. For the purposes of internal analysis, enterprises themselves decide this issue, taking into account the specific situation and existing settlement practices.

An external analyst has reporting information and, therefore, will proceed from the breakdown of accounts receivable (overdue debt, including those with a maturity of more than 3 months).

A fairly common method of analyzing accounts receivable is to analyze its composition by maturity, allowing one to identify that part of it that can be classified as doubtful. For this purpose, the data in Tables 29 and 30 can be used (conditional figures).

Based on the initial data on the amount of shipped products and their payment, the average percentage of payment by month can be calculated and the average percentage of remaining unpaid products for the period can be determined, as shown in Table. thirty.

Table 29

Analysis of accounts receivable by maturity, rub.

Table 30

Thus, according to available data, the percentage of products paid for in the month of shipment ranged from 10 to 13%, in the second month - from 34 to 38%, in the third month - from 30 to 40%. As a result, the percentage of products remaining unpaid in the analyzed period ranged from 13 to 20%.

In this case, shipment meant the volume of product sales on credit, i.e., only part of the credit turnover of the “Sales of products, works, services” account. Advance payment amounts are not included in the calculation.

In the simplified example given, one quarter was considered as the analyzed period. Based on the dynamics of indicators of product shipment and payment, conclusions were drawn about the percentage of shipped products that remain unpaid. Obviously, the longer the time period used to determine the average percentage of accounts receivable outstanding, the more reliable the results will be.

Without any data other than those given, assume that the average percentage of unpaid accounts receivable for the period is 16%. Then, when assessing the “quality” of receivables and identifying those that are difficult to sell, the balance sheet value of customer debt is multiplied by the average percentage of unpaid products. If, for example, the value of accounts receivable on the balance sheet is 50,000,000 thousand rubles, then the calculation of liquidity ratios when conducting an internal analysis of solvency will include the value of 42,000,000 thousand rubles (50,000,000 - 50,000,000 0.16) .

Note that this method of establishing the amount of doubtful accounts receivable is widely used in foreign practice. For this purpose, data from a statistical analysis of accounts receivable from previous periods is used.

In this case, two main approaches are used: either the percentage of the ratio of doubtful debts in expired periods and the total amount of receivables is established, or the ratio of unpaid doubtful debts and total sales volume is calculated. This or that method of calculating the amount of doubtful accounts receivable is determined by the professional judgment of the accountant (financial manager) and is one of the aspects of accounting policy.

It is believed that the estimate of the amount of the provision for doubtful debts will be most accurate if it is based on data on the time of late payments at the balance sheet date and probabilistic forecasts of repayment of receivables.

The use of an approach based on establishing the percentage of doubtful debts from sales volume is explained by the fact that losses from writing off bad debts participate in the formation of the financial result and the determination of this indicator is an element of the structural analysis of the income statement.

A separate problem for the analysis of receivables is the procedure for writing them off. It is known that the receivables of Russian enterprises include that part that can be characterized as debt that is unrealistic for collection. At the same time, there are often cases when the period of overdue payment is more than 3 years, i.e., more than the limitation period specified by law (the law also provides for other, different from general, limitation periods or special periods).

According to the Regulations on maintaining accounting and financial reporting in the Russian Federation, accounts receivable for which the statute of limitations has expired and other debts that are unrealistic for collection are written off for each obligation based on the inventory data, written justification and order (instruction) of the head of the organization and are attributed respectively, to the account of the reserve for doubtful debts or to the financial results of a commercial organization, if in the period preceding the reporting period, the amount of debts was not reserved.

In civil law, the statute of limitations is a period of time established by law for judicial protection of a person whose right has been violated. It is important to correctly establish the starting point of the statute of limitations. According to Article 200 of the Civil Code of the Russian Federation, the limitation period begins from the day when the person learned or should have learned about the violation of his right. For obligations with a specific performance period, the limitation period begins to run upon the expiration of the performance period. At this moment, the creditor company already knows that the obligation has not been fulfilled.

The expiration of the statute of limitations terminates the existence of objective civil rights. Consequently, maintaining the amounts of this unclaimed debt as part of the balance sheet asset leads to a distortion of information about the actual volume of claims that the enterprise can present to its debtors, reporting data, and an overstatement of the real amount of receivables and net assets.

The next problem is related to determining the consequences of writing off unclaimed receivables. Clause 15 of Section 2 of the Regulations on the composition of costs for the production and sale of products (work, services), included in the cost of products (work, services), and on the procedure for generating financial results taken into account when taxing profits, stipulates that non-operating expenses include losses from writing off receivables for which the statute of limitations has expired.

It is noted that the write-off of receivables after the expiration of the limitation period must be preceded by the fulfillment of a number of conditions: the creditor’s appeal to the arbitration court and the court’s decision to refuse to award the amount of the debt to the creditor; taking measures by the creditor to collect debt from the debtor (correspondence with the debtor about repaying the debt, correspondence with registration and tax authorities about identifying the actual location of the debtor).

Only if the listed conditions are met, indicating that the enterprise has exercised its right to collect the debt from the debtor, the write-off of receivables for which the statute of limitations has expired will be taken into account for tax purposes. In this regard, there is a misconception that failure to comply with these requirements makes it impossible to write off accounts receivable, which as a result becomes a “permanent item” on the balance sheet.

This common misconception is associated with the identification of the formation of financial results for tax purposes and for the purposes of presenting information in financial statements. The fact that the specified receivables cannot be included in the calculation of the taxable base does not mean that they can remain part of the assets (property) of the enterprise. Otherwise, the enterprise’s actions to reflect receivables conflict with the Federal Law “On Accounting” and the Regulations on Accounting and Financial Reporting in the Russian Federation, according to which financial statements must give a reliable and complete picture of the property and financial position of the organization. If unclaimed receivables remain, there is a distortion of reporting data associated with an overstatement of net assets and financial results.

To assess accounts receivable turnover, the following group of indicators is used.

2. Receivables repayment period

It should be borne in mind that the longer the period of overdue debt, the higher the risk of non-repayment.

3. Share of accounts receivable in the total volume of current assets

4. Share of doubtful debts in accounts receivable

This indicator characterizes the “quality” of receivables. Its upward trend indicates a decrease in liquidity.

Calculation of accounts receivable turnover indicators is given in table. 31

Table 31

Accounts receivable turnover analysis

Indicators	Last year	Reporting year	Changes
Accounts receivable turnover, number of times	4,260*		-0,256
Receivables repayment period, days			+5,4
Share of receivables from buyers and customers in the total volume of current assets, %			-3,3
Share of doubtful accounts receivable in total debt, %**			+8,0

* The indicators are transferred from a similar table compiled based on the results of the past year,

** Data on doubtful accounts receivable is taken from the accounting department’s statement of assets.

As follows from table. 31, the state of settlements with customers has worsened compared to last year. The average repayment period for receivables increased by 5.4 days, amounting to 89.9 days. Particular attention should be paid to reducing the quality of debt. Compared to last year, the share of doubtful accounts receivable increased by 8.0% and amounted to 21.0% of the total amount of accounts receivable. Bearing in mind that the share of accounts receivable by the end of the year amounted to 45.5% of the total volume of current assets, we can conclude that the liquidity of current assets in general has decreased and, consequently, the financial position of the enterprise has deteriorated.

Monitor the status of settlements with customers regarding deferred (overdue) debts;

If possible, target a larger number of buyers to reduce the risk of non-payment by one or more large buyers;

Monitor the ratio of receivables and payables: a significant predominance of receivables creates a threat to the financial stability of the enterprise and makes it necessary to attract additional (usually expensive) funds; an excess of accounts payable over accounts receivable may lead to the insolvency of the enterprise;

Provide discounts for early payment.

Payment terms can be chosen to make early payment more attractive to buyers.

In conditions of inflation, any deferment of payment leads to the fact that the manufacturing enterprise (seller) actually receives only part of the cost of products sold. Therefore, there is a need to evaluate the possibility of providing a discount for early payment. The analysis technique will be as follows.

The decline in the purchasing power of money over a period is characterized by the coefficient Ku, the inverse of the price index. If the amount receivable established by the contract is S, and the price dynamics are characterized by the index Ic, then the real amount of money, taking into account their purchasing power at the time of payment, will be S: Ic . Let's say that during the period prices increased by 5.0%, then / = 1.05. Accordingly, the payment is 1000 rubles. at this moment is equivalent to paying 952 rubles. (1000: 1.05) in real measurement. Then the real loss of revenue due to inflation will be 48 rubles. (1000 - 952); Within this value, a discount from the contract price, provided subject to early payment, would reduce the company's losses from the depreciation of money.

For the analyzed enterprise, annual revenue, according to f. No. 2, amounted to 12,453,260 thousand rubles. It is known that in the analyzed period, 95% (RUB 11,830,600 thousand) of revenue from product sales was received on terms of subsequent payment (with the formation of receivables). According to the table. 31 we determined that the average period for repayment of accounts receivable at the enterprise in the reporting year was 89.9 days. Taking (conditionally) the monthly inflation rate equal to 3%, we obtain that the price index Ic = 1.03. Thus, as a result of a one-month deferred payment, the enterprise will actually receive only 97.1% (1: 1.03,100) of the contract value of the products. For the current receivables repayment period of 89.9 days at the enterprise, the price index will average 1.093 (1.03 1.03 1.03). Then the coefficient of decline in the purchasing power of money will be equal to 0.915 (1: 1.093). In other words, with an average receivables collection period of 89.9 days, the enterprise actually receives only 91.5% of the contract value, losing 85 rubles from every thousand rubles. (or 8.5%).

In this regard, we can say that from the annual revenue of products sold on the terms of subsequent payment, the enterprise actually received only 10,824,999 thousand rubles. (11,830,600 x 0.915). Therefore, 1,005,601 thousand rubles. (11,830,600 - 10,824,999) constitute hidden losses from inflation. In this regard, it may be advisable for an enterprise to establish some discount from the contract price, subject to early payment under the contract.

The next argument in favor of providing discounts to customers in case of early payment is the fact that the company in this case gets the opportunity to reduce not only the amount of accounts receivable, but also the amount of financing, in other words, the amount of required capital. The fact is that in addition to the actual losses from inflation that arise due to late payments to customers, the supplier company incurs losses associated with the need to service debt, as well as lost profits from the possible use of temporarily free funds.

If the average payment period for receivables is 60 days, and the company provides customers with a 2% discount for payment no later than 14 days, then such a discount for the company will be comparable to receiving a loan at a rate of 15.7%. If an enterprise attracts borrowed funds at 24% per annum, then such conditions will be beneficial for it.

At the same time, for a buyer placing funds in deposits at 14% per annum, such a discount will also be attractive. If the buyer is informed in advance of the benefit he will receive from early payment, it is likely that the result of his decision will be to speed up settlement.

Options for payment methods with buyers and customers are analyzed in table. 32.

Table 32

Analysis of the choice of payment method with buyers and customers

Line number	Indicators	Option 1 (payment period 30 days, subject to a 3% discount)	Option 2 (payment period 89.9 days)	Deviations (gr. 2 – gr. 1)
A	B
	Price index (Ic)	1,03	1.03*1.03x1.03= =1.093	+0,063
	Coefficient of decline in the purchasing power of money (Ci)	0,971	0,915	-0,056
	Losses from inflation for every thousand rubles of the contract price, rub.			+56
	Losses from paying interest on loans at a rate of 24% per annum, rub.		40*	+40
	Losses from providing a 3% discount on every thousand rubles of the contract price, rub.		-	-30
	The result of the policy of providing a price discount when the payment term is shortened (p.3 + p.4 + p.5)			+66

Thus, providing a 3% discount from the contract price, subject to a reduction in the payment period, allows the enterprise to reduce losses from inflation, as well as costs associated with attracting financial resources, in the amount of 66 rubles. from every thousand rubles of the contract price.

Please note that for an enterprise the payment period has been reduced from 3 to 1 month V In the case of providing a 3% discount, it is equivalent to receiving a loan for 2 months at a rate of 18% per annum.

For the buyer, such conditions must be compared with the possibility of placing temporarily available funds. With the alternative possibility of placing funds in deposits at 14-16%, this option (reducing the settlement period) is appropriate.

In the situation under consideration, the decision-making period corresponded to 1 and 3 months. If there is a need to evaluate changes in the purchasing power of money for a period that does not correspond to a whole month, for example 15, 40, 70, etc. days, use the compound interest formula

where T is the monthly inflation rate (in our example 0.03);

P - number of days in the period for making a decision.

Thus, when assessing the fall in the purchasing power of money over a period equal to, for example, 45 days, we obtain the value

Similarly, options for providing discounts of other sizes and other terms for repayment of receivables that satisfy both the seller and the buyer of the products can be considered.

It should be borne in mind that a more accurate calculation of the feasibility of providing discounts to customers will be obtained in the case when it is based not on the price index, which is essentially a macroeconomic indicator, but on the weighted average cost of capital of a given enterprise, characterizing the price of its financial resources.

The final stage of the analysis of accounts receivable turnover should be an assessment of the compliance of the conditions for obtaining and providing a loan. As it was found out earlier, the activities of any enterprise are associated with the acquisition of materials, products, and the consumption of various types of services. If payments for products or services provided are made on the basis of subsequent payment, we can talk about the enterprise receiving a loan from its suppliers and contractors. The enterprise itself acts as a creditor to its buyers and customers, as well as suppliers in terms of advances issued to them for the upcoming delivery of products. Therefore, the financial well-being of the enterprise depends on the extent to which the terms of the loan provided to the enterprise correspond to the general conditions of its production and financial activities (the length of time materials are in inventory, the period of their transformation into finished products, the maturity of receivables). To compare the conditions for obtaining and providing a loan, a table can be compiled. 33.

Table 33

Comparative assessment of the conditions for granting and receiving a loan

at the enterprise

* Indicator values ​​are adjusted according to the conditions of movement of material assets

As follows from the data in Table 33, changes in the duration of the period for providing and receiving a loan were multidirectional: the period for lending to an enterprise by its suppliers decreased by 3.5 days, and the period for repaying receivables from buyers and customers increased by 5.4 days. Changes in advances received and issued were characterized by a general reduction in the duration of the loan period. However, since the time spent by funds in advances issued to suppliers increases the duration of the operating cycle, and the time spent using buyer funds reduces the overall turnover period, we can conclude that in terms of settlements on prepayment terms, the changes were not in favor of the enterprise. There is no need to say that all this is evidence of a deterioration in the financial conditions of the enterprise.

It should be borne in mind that the duration of the repayment period for receivables and payables cannot be assessed equally. The period from the moment of receipt of products (services) from suppliers to the transfer of funds to them must be compared with the total time required for a one-time turnover of funds at the enterprise, i.e., the duration of the operating cycle.

In our example, the duration of the operating cycle was 162 days with a repayment period for a trade loan of 61.5 days. Interpreting the calculation results, we can conclude that, having received a loan from suppliers for 61.5 days, the enterprise uses it in such a way that it is able to repay the debt from its own funds only after 162 days. The fact that accounts payable at the enterprise are repaid earlier than the specified period indicates additional attraction of financial resources from outside. As was clarified earlier, such funds are short-term bank loans.

Introduction

1. Theoretical foundations for the assessment and management of receivables

1.1 Essence and types of receivables, and factors influencing it

1.2 Company policy in the field of commercial credit and deferred payments

1.3 Methods of collection of receivables

2. Organizational and economic characteristics of the organization

3. Valuation and management of receivables

3.1 Accounts receivable analysis

3.2 Credit policy and its role in accounts receivable management

3.3 Accounts receivable turnover and ways to accelerate it

4. Ways to improve the accounts receivable management policy

Conclusion

Bibliography

Applications

Introduction

An inevitable consequence of the currently existing system of cash payments between organizations is accounts receivable, in which there is always a gap in the time of payment with the moment of transfer of ownership of the goods, between the presentation of payment documents for payment and the time of their actual payment.

In the process of financial and economic activities, an enterprise constantly has a need to carry out settlements with its counterparties, the budget, and tax authorities. When shipping manufactured products or providing some services, an enterprise, as a rule, does not receive money in payment immediately, i.e. it essentially lends money to buyers. Therefore, during the period from the moment of shipment of products to the moment of receipt of payment, the enterprise’s funds are immobilized in the form of accounts receivable, the level of which is determined by many factors: the type of product, market capacity, the degree of market saturation with this product, the terms of the contract, the payment system adopted at the enterprise, etc. The latter factor is especially important for the financial manager.

Analysis of accounts receivable includes a set of interrelated issues related to assessing the financial position of the enterprise.

The need for this arises among the heads of relevant services; auditors checking the correctness of reflection of debts of debtors and debts to creditors; from financial analysts of credit organizations and investment institutions. However, managers of the enterprise itself should give priority to the analysis of debt obligations.

Due to all of the above, we can conclude that the topic of this course work, “Receivables Management,” is relevant.

The purpose of writing a course work is to study the main issues of accounts receivable management in an enterprise.

Based on the goal, it is necessary to solve the following tasks:

Consider the essence and types of receivables according to various characteristics;

Consider the company’s policy in the field of commercial credit and deferred payments;

Consider methods of collecting accounts receivable;

Give a brief organizational and economic description of Timber Industry Complex LLC;

Analyze the composition of accounts receivable for LLC "Lesopromyshlenny complex";

Familiarize yourself with the policy of Timber Industry Complex LLC in the field of commercial lending;

Identify ways to improve accounts receivable management.

The object of study of this course work is LLC "Lesopromyshlenny complex" of the Kostroma region of the city of Sharya.

The subject of the analysis is the receivables of Lesopromyshlenny Kompleks LLC.

The following methods were used in this course work:

Economics and mathematics;

Statistical and economic;

1. Theoretical foundations of receivables valuation and management

1.1 The essence and types of receivables, and factors influencing them

In modern conditions, the rules are dictated by buyers and customers, for whom it is beneficial to first receive goods or accept work, and only then pay. In order to maintain their positions in the market, suppliers and contractors follow the wishes of clients and are increasingly using commercial lending, providing deferred payments, etc. etc. If the fact of delivery does not coincide in time with the receipt of funds for them, the supplier has a receivable.

Accounts receivable make up a significant part of the company's current assets.

Accounts receivable in the process of fulfilling obligations is a natural, objective process of economic activity of enterprises.

It occurs under the following circumstances:

Commercial lending by the supplier to the buyer, i.e. with deferred payment;

Late payment, i.e. when payment is late;

Shortages, embezzlement, theft;

Deliveries of substandard or incomplete products;

Other cases.

Accounts receivable have now become the most liquid asset of the enterprise. Hence the need for serious attention to it, to its analysis, to its management.

Accounts receivable- these are the requirements of an enterprise in relation to other enterprises, organizations and clients to receive money, supply goods or provide services, or perform work.

Accounts receivable– these are funds temporarily diverted from the turnover of the enterprise.

Accounts receivable - These are funds owed to the company by its counterparties - sellers and buyers.

Accounts receivable refers to funds owed to the enterprise, but not yet received by it, or obligations of clients (debtors) to the enterprise to pay money for the provision of goods or services.

Debtors– these are legal entities and individuals who have debt to this enterprise.

The most complete definition is the following:

Accounts receivable - This:

One of the types of current assets of an enterprise;

The uncollected portion of its sales proceeds;

A separate type of obligations arising from a contract, as well as due to damage and other grounds (Article 307 and others of the Civil Code of the Russian Federation).

In accordance with the financial statements, the following is taken into account as part of accounts receivable:

Debt of buyers and customers;

Bills receivable;

Debt of subsidiaries and dependent companies;

Debt of the founders for contributions to the authorized capital;

Advances issued;

Other debtors.

For most enterprises, in the total amount of accounts receivable, the largest share is occupied by payments for goods, work and services, i.e. accounts receivable.

In the balance sheet, accounts receivable are divided according to the timing of their formation into two groups:

Accounts receivable for which payments are expected within 12 months. after the reporting date, i.e. short-term receivables;

Accounts receivable for which payments are expected in more than 12 months. after the reporting date, i.e. long-term debt.

Accounts receivable is a factor that determines the following:

The size and structure of the company's current assets;

The size and structure of sales revenue;

Duration of the financial cycle of the enterprise;

Turnover of current assets and assets in general;

Liquidity and solvency of the enterprise;

Sources of funds for the enterprise.

Significant amounts of accounts receivable slow down its turnover, and also the turnover of current assets and assets in general, increase the duration of the enterprise’s financial cycle. In addition, increased accounts receivable require additional sources of funds.

In modern economic practice, accounts receivable are classified into the following types - table 1.

Table 1 – Types of accounts receivable

Debt	Dates of onset	Peculiarities
1. Urgent	Within the period established by the contract	It arises as a result of the use of forms of non-cash payments (collection) or as a result of deferred payment.
2. Expired - doubtful	More than the period established by the contract	Some of the debt may become uncollectible before the statute of limitations expires.
3. Hopeless - the statute of limitations has expired	More than 3 years from the expiration date	Arises from legitimate overdue receivables; Written off as losses with a reduction in the taxable base; Reflected on the off-balance sheet account.
4. Located in an off-balance sheet account	Within 5 years from the date of write-off	The goal is to control the possibility of obtaining it.

Urgent receivables, i.e. the one for which the payment term has not arrived is formed in the case when the traditional form of payment-collection is used, or payment by order after receipt of the goods, and not advance payment.

Overdue (doubtful) debt is formed after the expiration of the period established by the contract. The amount of the reserve is determined for each doubtful debt based on the financial condition (solvency) of the debtor and an assessment of the likelihood of repaying the debt in whole or in part. The amount of reserves for doubtful debts created in the previous year, not used during the reporting year, is written off from the debit of account 82 “Valuation reserves” (the corresponding subaccount) to the credit of account 80 “Profits and losses”.

Overdue debt requires special attention of the enterprise, since it is from it that bad debt arises. To write off receivables for which the statute of limitations has expired (3 years), the following is required:

Inventory of overdue debts in accounting accounts;

Taking measures to search and collect debt;

Written justification from the chief accountant for the need to write off accounts receivable;

An order or instruction from the head of an enterprise to write off debt for financial results;

Accounting entry;

Reflection of written-off debt on a separate off-balance sheet account for five years from the date of write-off for the purpose of its possible collection.

The amount of accounts receivable is determined by many factors. They can be divided into external and internal.

External factors:

The state of the economy in the country (the decline in production increases the size of accounts receivable);

The state of payments in the country (the crisis of non-payments leads to an increase in accounts receivable);

The effectiveness of the monetary policy of the Central Bank of the Russian Federation (restricting emissions causes “monetary hunger” and complicates calculations);

Inflation level (with high inflation, people are in no hurry to pay off their debts; the later the debt is due, the lower its amount);

Seasonality of product output (if it is a seasonal product, then accounts receivable increases);

Market capacity and degree of saturation (if the market is small and saturated with a given type of product, then difficulties arise with the sale of products).

Internal factors:

Credit policy of the enterprise (incorrect establishment of terms and conditions for granting loans, failure to provide discounts for early payment of bills, incorrectly established creditworthiness criteria, errors in determining the solvency of clients, unaccounted for risks can lead to a sharp increase in accounts receivable);

Types of settlements used by enterprises (the use of types of settlements that guarantee payment reduces the size of accounts receivable);

State of control over accounts receivable;

Professionalism of the financial manager involved in managing the company's receivables;

Other factors.

External factors do not depend on the activities of the enterprise, and it is almost impossible to limit their influence on the enterprise.

Internal factors depend on the enterprise itself, on how well the financial manager masters the art of managing accounts receivable.

The form of accounts receivable is mainly a loan provided on an open account. In this case, the only evidence that the buyer owes the supplier money for goods or services received is an entry in the books and an invoice signed by the buyer. To protect itself from the risk of non-payment of invoices, the supplier may require the execution of a commercial credit transaction by issuing a bill of exchange - ordinary or transferable (accepted), or by issuing a letter of credit by the buyer.

The need to properly manage the level of receivables is determined not only by the desire to maximize the enterprise’s cash flows, but also by the desire to reduce the company’s costs arising from the fact that any increase in receivables must be financed in some way: through an increase in external borrowings (funds from creditors or bank loans) or at the expense of own profits.

1.2 Enterprise policy in the field of commercial credit and deferred payments

Accounts receivable management policies are often referred to as product buyer policies. The main stages of accounts receivable management include conducting an analysis of debt in the previous period, forming the principles of a credit policy in relation to product buyers, developing a procedure for indexing accounts receivable and building a system for monitoring the movement and timely repayment of accounts receivable. .

The main objective of the analysis is to assess the level of accounts receivable and its dynamics in the previous period. Control includes ranking accounts receivable according to the timing of their occurrence: 0-30 days, 31-60 days, 61-90 days, 91-120 days and over 120 days. When studying the behavior of accounts receivable in the period under review, relative indicators are used; the calculated indicators for the reporting year are compared with the same indicators of previous periods.

Credit policy is a set of decisions consisting of four elements:

The loan term is the time buyers have before they have to pay for their purchases.

Discounts provided as an incentive for fast payments.

Credit standards that indicate the minimum financial strength of qualified customers buying on credit.

A charging policy that reflects how hard or soft a company's approach is to customers who are late on payments.

In the world practice of financial management, three main types of credit policies are used in relation to customers:

1) Conservative is aimed at minimizing credit risk, which is a priority. The company strives to reduce the number of buyers on credit, primarily due to groups of buyers with increased risk; by minimizing the terms of the loan and its size; tightening the conditions for granting credit and increasing its cost, as well as through a more stringent procedure for collection of receivables.

2) Moderate- focused on an average level of credit risk and more lenient loan terms.

3) Aggressive provides for maximizing additional profits by expanding the volume of product sales on credit, despite the high level of credit risk.

In practice, in order to minimize the likelihood of bad debts, it is necessary to correctly assess the solvency of buyers, their credit history, etc. In this case, the only way to keep the situation under control is to make an informed choice and use a system for monitoring accounts receivable.

Russian economists distinguish two approaches to managing accounts receivable:

Comparison of additional profits associated with one or another spontaneous financing scheme (providing customers with a discount on the price of goods) with the costs and losses that arise when changing the product sales policy (prepayment or sales on credit);

Comparison and optimization of the amount and timing of receivables and payables.

Formation of conditions for granting a commercial loan includes the determination of the following parameters:

Determining the conditions for granting credit when selling goods, its terms and system of discounts.

Determining loan guarantees is the simplest
The method of selling goods is open account, where, in accordance with the concluded contract, an invoice is issued to the buyer for signature.

Determining buyer reliability or probability of payment for goods received by him. Widespread published ratings, analysis of the potential buyer's published financial statements, construction of risk indices, and balance sheet analysis can help with this.

Determining the loan amount provided to each specific buyer. In this case, as a rule, calculations are made based on the likelihood of the buyer paying for the goods, the possibility of repeating orders, the amount of benefits and losses received from payment (non-payment) of the goods.

Defining a receivables collection policy. The company, for a fee, transfers the right to receive money on accounts receivable to a specialized company. The latter can provide collection, insurance and financing of receivables or provide assistance in collection and insurance of doubtful debts. It is possible to obtain credit insurance if you need protection against bad debts. These operations are known as factoring, and the companies themselves are known as factoring.

All of the above measures are interconnected. A firm can offer more favorable terms of sale if it has a strong buyer selection policy, or provide credit to high-risk customers if it has a reliable collection mechanism for receivables.

These comparisons are made based on the borrower’s level of creditworthiness, the time of deferred payment, the strategy of discounts on the price of goods, collection costs, etc.

An enterprise's accounts receivable management policy may include the following:

1. end-to-end analysis of receivables by timing and list of debtors with identification of doubtful and bad debts;

2. dividing buyers into three groups depending on the possibility of applying three payment options to them: prepayment, other forms of payment, deferred payment; this should be done taking into account the sales volume for each of them, their solvency, the history of relationships with each enterprise;

3. determining the pricing policy for each of the three groups of buyers, taking into account the possibility of providing discounts and their size; identification on this basis (from the point of view of payment) of unprofitable products;

4. determination of the conditions (terms, size, etc.) of a commercial loan provided with deferred payment to various buyers;

5. identifying the possibilities of using bills of exchange for deferred payment and their conditions;

6. identifying the possibility of the occurrence of doubtful (overdue and bad) accounts receivable and possible allowable losses in this case; identifying on this basis ways to obtain debts and reduce bad debts; determination of the real (market) value of receivables (timely formation of reserves for doubtful debts);

7. clarification of situations in which the sale or pledge of receivables and the conditions for this are possible;

8. forecasting the receipt of receivables and determining ways to obtain them based on the collection ratio and other mechanisms.

Practice has developed some general rules that allow more precise management of receivables:

Monitoring the status of settlements with buyers and contractors for overdue (deferred) payments;

Focus on a large number of buyers (their diversification) in order to reduce the risk of non-payment for goods and services by one or more large buyers;

Monitoring the ratio of receivables and payables;

Payment for goods by regular customers on credit (deferred payment), and its size depends on a number of factors, in particular on the financial situation of the supplier, the stability of relations with the latter, etc.;

Synchronization of cash flows (inflow and outflow of funds), i.e., the closest possible approximation in time of receipt of receivables and repayment of accounts payable. This allows you to reduce the balance of money in your current account, reduce bank credit and debt servicing costs;

Reducing the volume of funds in transit through the use of electronic check transfers;

When managing accounts receivable, an enterprise must also take into account the influence of external factors, such as the non-payment crisis, the unequal impact of inflation on various goods, the imperfection of the legislative framework and the inconsistency of certain regulatory documents, the imperfection of bankruptcy procedures, the ongoing redistribution of property, etc.

Management of accounts receivable at an enterprise is currently a priority, since it is associated with the management of significant cash flows, which determine the enterprise's provision of its own funds, market volume and, accordingly, sales volume.

In the next section we will look at the receivables collection policy from customers.

1.3 Accounts receivable collection methods

The methods followed by a company to collect receivables are called collection policy.

Cash collection– the process of receiving money for sold products.

Collection of accounts receivable includes the following elements:

The age of the debt itself;

Total amount of debts;

Total amount of overdue payments;

Account opening date;

Timeliness of previous payments;

Payments made after the last payment date;

The amount of the client’s loan that is accepted for approval;

Client status that may require special treatment;

Terms and forms of preliminary and subsequent reminders to customers about the payment date;

Conditions for initiating bankruptcy proceedings against insolvent debtors.

The effectiveness of the collection procedure is determined not so much by a reduction in the size of accounts receivable, but by an increase in profits due to an increase in sales volume and the organization of reliable relationships with clients.

The analysis of the state of receivables begins with a general assessment of the dynamics of its volume as a whole and continues in the context of individual groups; determine the share of accounts receivable in current assets, analyze its structure; determine the share of accounts receivable, payments for which are expected within a year; evaluate the dynamics of this indicator and conduct a subsequent analysis of the qualitative state of receivables in order to assess the dynamics of unjustified (doubtful) debts.

A methodological method of analysis that makes it possible to forecast accounts receivable is the calculation of collection ratios (repayment of accounts receivable), which is the ratio of accounts receivable arising in a specific period to the amount of shipment (sales volume) of the same period. The essence of the approach is to decompose the amount of receivables on a specific date into components that characterize the period of its formation, for example, up to one month, from one to two months, from two to three months, etc.

Accounts receivable turnover is assessed using the following indicators.

Accounts receivable turnover ratio Kdz (turnover):

where is Vyr. – sales revenue, thousand rubles;

DZ – average amount of accounts receivable, thousand rubles. (according to lines 230 and 240 of the balance sheet)

The accounts receivable turnover ratio shows the expansion or reduction of commercial credit provided by the enterprise.

Average collection period, days

The receivables turnover ratio in days reflects the duration of one receivables turnover in days. Moreover, the longer the repayment period, the higher the risk of non-repayment.

Since the financial position of an enterprise depends on the extent to which funds invested in assets are converted into money, it is necessary to study the share of receivables in them.

Share of short-term receivables in the total amount of current assets, % =

The higher this indicator, the less mobile the property structure of the enterprise.

Ratio between accounts receivable and accounts payable

Comparison of receivables and payables is one of the stages in the analysis of receivables and allows us to identify the reasons for the formation of the latter. At the same time, many analysts believe that if accounts payable exceed accounts receivable, then the organization uses funds rationally, i.e. temporarily attracts more funds into circulation than it withdraws from circulation. Accountants have a negative attitude towards this, since the organization is obliged to repay accounts payable regardless of the status of accounts receivable.

The most popular ways of influencing debtors to pay off debts are sending letters, telephone calls, and personal visits. For example, a letter may be sent to the account holder stating that he is ten days overdue for payment; a more stern letter followed by a telephone call may be sent if money is not received after 30 days, and after 90 days the account may be referred to a collection agent. These measures are legal, but they may lead to loss of favor with the clientele.

Therefore, the best option is to use urgent payment discounts designed to encourage faster payments. Discount decisions are analyzed by balancing the costs and benefits associated with different discount terms.

Offering discounts is justified in three main situations:

1) if a reduction in price leads to an increase in sales, and the cost structure is such that the sale of this product is reflected in an increase in total profit, the product is highly elastic and has a fairly high share of fixed costs;

2) If the discount system intensifies the influx of cash in conditions of shortage at the enterprise, a short-term critical reduction in prices is possible, up to a negative financial result for specific transactions;

3) The system of discounts for accelerating payment is more effective than the system of penalties for late payment.

In all cases, we can talk about spontaneous financing, which, with inflation, leads to a decrease in the current cost of products sold, so the possibility of providing a discount on early payment should be accurately assessed.

In industrialized countries, the most common scheme is “2/10 full 30”, meaning the following:

· The buyer receives a 2% discount on the price of the product if it is paid within 10 days from the beginning of the credit period (for example, from the moment of receipt of the product);

· the buyer pays the full cost of the goods if payment is made between the 11th and 30th days of the contract period;

In case of non-payment within a month, the buyer, in addition to the cost of the goods, pays a fine, the amount of which depends on the moment of payment.

The “money collection” policy is carried out subject to the presence of a special account receivable manager on staff of the enterprise. In the absence of such an employee, factoring companies help solve the problem in industrialized countries.

The task of the factoring departments of banks or companies is to carry out, on a paid and contractual basis, a number of credit and settlement operations for enterprises related to the fastest completion of their payments for goods and services with clients (buyers).

Currently, the bank's factoring department can provide its clients with the following types of services:

a) acquire from supplier enterprises the right to receive payment for commodity transactions from a specific buyer or group, the composition of which is agreed in advance with the bank (purchase of urgent debt for goods shipped);

b) purchase from enterprises-suppliers of receivables for goods shipped that were not paid on time by buyers (purchase of overdue receivables);

c) purchase bills of exchange from their clients (bills accounting operations).

When the factoring department of a bank (company) purchases overdue receivables for commodity transactions from its clients, it pays it to the supplier not in all cases, but under certain conditions: if the delay in payment is no more than three months and only upon receipt of a notification from the payer’s bank that the buyer is not completely withdrawn from lending and is not declared insolvent.

Operations involving the assignment by a client of overdue receivables to the bank's factoring department have an increased degree of risk. This leads to a higher commission, the level of which is 1.5-2.0 times higher than when the bank purchases debt for goods shipped, the payment period for which has not yet arrived.

The collection process can be expensive, both in terms of variable costs and in terms of loss of customer goodwill, but nevertheless, a certain firmness is still necessary to avoid unnecessarily prolonging the repayment period of purchase debt and to minimize direct losses. A balance needs to be struck between the costs and overall overall benefit of different collection policy options.

2. Organizational and economic characteristics of the organization

The founders of Lesopromyshlenny Kompleks LLC are individuals, according to the constituent agreement, who do not have a prohibition or restriction for participation in the creation of limited liability companies.

LLC "Lesopromyshlenny complex" is a legal entity:

Registered by the Decree of the head of self-government of the city of Sharya, Kostroma region. dated June 16, 1999 N 374;

Registered with the tax authority on June 17, 1999 (Certificate series 44 N 0005575 issued on June 17, 1999 by the Tax and Duty Inspectorate for the city of Sharya, code 4407); a new certificate was issued, series 44 No. 000454136 dated March 1, 2004.

Included in the Unified State Register of Legal Entities under the main state registration number 1024402037990 (certificate series 44 000453038 dated December 17, 2002).

Actual address of LLC "Lesopromyshlenny complex": Kostroma region, Sharya, village. Vetluzhsky, st. Pervomaiskaya, house 22a.

LLC "Lesopromyshlenny complex" is the founder of:

Sharyales LLC Location: Kostroma region, village. Vetluzhsky, st. Pervomaiskaya, 22a

LLC "Lesopromyshlenny Kompleks" has structural divisions: Vokhomsky Timber Industry Enterprise and Pavinsky Timber Industry Enterprise.

LLC "Lesopromyshlenny Kompleks" in its economic activities is guided by the legislation of the Russian Federation, the charter and other regulatory documents governing the relations of commercial enterprises.

To achieve its goals, Lesopromyshlenny Kompleks LLC has the right to carry out any types of activities not prohibited by law, the main of which are:

Logging;

Trade activities in construction timber;

Retail trade in timber;

Production of lumber, profiled along the edge or face;

Production of wood wool, wood flour;

Production of technological chips and shavings;

Wood raft;

Unloading and loading from water.

LLC "Lesopromyshlenny Kompleks" occupies a leading position in the logging, processing and sale of timber in the north-east of the Kostroma region. The resource base for Lesopromyshlenny Kompleks LLC is the forestry enterprises: Pavinsky, Vokhomsky, Oktyabrsky.

In its activities, Timber Industry Complex LLC uses both its own and borrowed funds.

The main reason for using credit funds is the seasonal nature of logging work; the main logging period is the autumn-winter period; it is this period that requires additional investments in production, one of the sources of which are credit funds. Timber Industry Complex LLC provides lending at the Sharya branch of Sberbank of the Russian Federation No. 4366 and the branch of OJSC VTB Bank in Kostroma, and has a positive credit history. Loan amounts and interest are paid on time and in full.

LLC "Lesopromyshlenny Kompleks" owns separate property, which is accounted for on its independent balance sheet, and can, in its own name, acquire and exercise property and personal non-property rights, bear responsibilities, and be a plaintiff and defendant in court and arbitration.

Timber Industry Complex LLC includes the following workshops and divisions:

Main workshops and areas of woodworking production:

Cutting and sorting unit

Truck transport service for wood removal

Lumber shop (sawing raw materials)

Lumber processing workshop (lumber drying)

Woodworking shop (production of planed timber, joinery and laminated veneer lumber)

Wood flour production workshop

Finished products warehouse (finished products shipment)

Raw material control and accounting service

Technical control service

Auxiliary workshops:

Crane repair area

Mechanical repair shop

Motor transport service for woodworking production

Combined heat and power plant (heat and electricity production)

Repair and construction group

Track repair area

accounts receivable credit payment

Electrical equipment repair area (maintenance of cable and overhead high-voltage lines, maintenance of substations, high-tech programmable production equipment)

In the main workshops, operations for the manufacture of products intended for sale are carried out. In the workshops (divisions) of the main production, objects of labor are transformed into finished products.

Auxiliary workshops (divisions) provide conditions for the functioning of the main production (tools, energy, equipment repair), provide services for the needs of the main workshops: carry out repair work on equipment and buildings, supply electricity, etc.

LLC "Lesopromyshlenny Kompleks" works both with neighboring countries and beyond.

The effectiveness of the work of Timber Industry Complex LLC depends on the correct use of functions, knowledge of management techniques, accounting standards and regulations governing the activities of the enterprise, and the ability to assess specific financial situations.

For this purpose, the enterprise has created an independent division - a financial service.

CEO

Financial Director

Chief Accountant Head of Labor and Salary Department

Accounting Economist

Fig 1. Financial service of LPK LLC

To organize financial work, an economic entity creates a special financial service. The activities of the financial service are subordinated to the main goal - ensuring financial stability, creating stable preconditions for economic growth and profit.

Enterprise financial service- this is a special structural unit that performs its specific functions in the system of organizing the activities of the enterprise. Its main purpose is to develop and implement the optimal financial policy of the enterprise.

The financial service is responsible for maximizing the income received by the enterprise, timely and complete financial support for the reproductive needs of the enterprise and the implementation of its settlements with the financial system of the state and counterparties. It is part of a unified mechanism for managing the enterprise's economy and is closely connected with its other services.

Target creation of a financial service of the enterprise, ensuring the most effective formation and use of the financial resources of the enterprise, organization and control of these processes.

Main tasks financial services are:

1) identifying ways to increase profits and improve profitability;

2) providing the financial resources necessary to fulfill production plans;

3) fulfillment of financial obligations to the budget, banks, suppliers, payment of wages, etc.;

4) promoting the most efficient use of fixed assets and working capital, investments;

5) control over the correct use of financial resources; ensuring the safety and acceleration of turnover of working capital.

TO functions The financial services of the enterprise include:

Providing financing for the economic activities of the enterprise;

Development of investment or credit policy;

Establishing budgets for cash expenditures for divisions of the enterprise;

Financial planning and participation in drawing up a business plan;

Carrying out settlements with suppliers, buyers, banks and the budget;

Participation in the preparation of financial statements

Table 2 - Size of the enterprise LLC "Lesopromyshlenny complex"

Index	Year			On average for 2007-2009.	Deviation 2009 from 2007 (%)
	2007	2008	2009
Gross output, thousand rubles.	460837	711289	672730	614952	146
Revenue from the sale of products, works, services, thousand rubles.	418943	646626	611573	559047	146
Profit (+), loss (-) from sales of products, works, services, thousand rubles.	29890	50241	37074	39068	124
Average annual cost of production fixed assets, thousand rubles.	104173	230068	232262	188834	223
Average annual cost of working capital, thousand rubles.	350711	370828	563856	428465	161
Average annual number of employees, people.	839	1541	1555	1312	185

Analyzing the main performance indicators of LPK LLC, we see that during the analyzed period (2007 - 2009) there is an increase in them, which indicates an increase in the scale of the enterprise’s activities. Gross output and revenue from sales of products increase during the analyzed period 2007 - 2009, the company makes a profit throughout the entire period, and it increases by 24% over the period. On average over three years it amounted to 39,068 thousand rubles. The average annual cost of production fixed assets has more than doubled. The average annual cost of working capital increased by 61%. The number of employees has almost doubled. A stable increase in the dynamics of all indicators indicates the expansion of the activities of LPK LLC.

Table 3 – Composition and structure of fixed assets of LPK LLC

Index	2007		2008		2009
	Thousand rub.	%	Thousand rub.	%	Thousand rub.	%
Building	16033	15,4	42791	18,6	65493	20,62
Facilities and transmission devices	16119	15,5	31312	13,6	31578	9,94
cars and equipment	58176	55,8	126734	55,1	175983	55,42
Vehicles	13253	12,7	28314	12,3	43500	13,70
Industrial and household equipment	570	0,5	895	0,4	970	0,31
Other fixed assets	22	0,02	22	0,01	22	0,01
Total	104173	100	230068	100	317546	100

In general, for the analyzed period from 2007 to 2009. There is an increase in fixed assets at the enterprise. The largest share in the structure of fixed assets falls on the column “machinery and equipment”; during the period under review, their share decreased by 0.4%, and the cost of fixed assets in the same column increases 3 times, this is explained by the acquisition of new machinery and equipment for manufacturing higher quality products. The cost of fixed assets in the column “vehicles” also increases, in 2009 compared to 2007 by more than 3 times, this is explained by the renewal of the machine and transport fleet. A small share is made up of industrial and household equipment and other fixed assets (less than 1%).

A very important indicator characterizing an enterprise is the availability and provision of its labor resources. (Table 4)

Table 4 - Composition and structure of labor resources of LPK LLC

Category of workers	2007	2008	2009	On average for 2007-2009.
				Person	To the total in %
Total at the enterprise, people, of which:	839	1541	1555	1312	100
logging	123	380	383	295	23
cutting and sorting unit	102	130	131	121	9
woodworking shop	218	407	405	343	26
sawmill	90	92	93	92	7
lumber processing workshop	25	26	28	26	2
wood flour production workshop	56	70	71	66	5
mechanical repair shop	45	45	45	45	3
CHP	30	31	33	31	2
motor transport service	70	210	215	165	13
engineering and technical workers	80	150	151	127	10

The number of employees of the enterprise increases over the period from 2007 to 2009. by 716 people, this is due to the expansion of the enterprise’s activities. The largest share in number is occupied by workers in the woodworking shop - 26% and workers involved in logging - 23%. The smallest share is occupied by workers of the lumber processing shop - 2%, workers of the thermal power plant - 2%, and workers of the mechanical repair shop - 3%. Engineering and technical workers occupy 10% of the share, this is explained by the fact that the enterprise is large in size and there is a need for qualified specialists and managers. The road transport service takes up 13%, which indicates that transport transportation is of no small importance at the enterprise.

LPK LLC receives the greatest profit from the sale of wood flour for export and the domestic market and planed GP. Also highly profitable throughout the entire period are the provision of rental and transport services; in 2008, their profitability level was 97.5 and 93.4%, respectively. The least profitable are the sales of round timber, and the sale of lumber for export is generally unprofitable for the enterprise, and in 2007 the sale of round timber for export was also unprofitable.

Table 5 - Indicators of financial stability in LLC "Lesopromyshlenny complex", thousand rubles.

Indicators	2007	2008	2009
Equity	171337	377126	361445
Fixed assets	131576	223183	253406
Availability of own sources of reserve formation (own working capital)	39761	153943	108039
long term duties	-	-	125369
Availability of own and long-term borrowed sources of reserve formation	39761	153943	233408
Short-term loans and borrowings	263132	175105	400672
Availability of the total amount of sources of reserve formation	302893	329048	634080
Inventory cost	171656	144035	246143
Excess (+) or deficiency (-) of own sources of reserve formation	-13189	9908	-138104
Excess (+) or deficiency (-) of own and long-term borrowed sources of reserve formation	-131895	9908	-12735
Excess (+) or deficiency (-) of the total amount of sources of reserve formation	131237	185013	387937
Type of financial situation	0;0;1	1;1;1	0;0;1

An analysis of absolute indicators of financial stability showed that Lesopromyshlenny Kompleks LLC had an unstable financial condition in 2007 and 2009; during this period the enterprise was insolvent, in which, however, it remains possible to restore solvency by replenishing it by increasing its own sources and attracting additional borrowed sources. In 2007, the enterprise is absolutely stable, while it is absolutely solvent, profitable, has an expanded reproduction process and is characterized by a low level of financial risk.

Table 6 - Analysis of the liquidity of the balance sheet of LLC "Lesopromyshlenny complex"

ASSETS	2007	2008	2008	PASSIVE	2007	2008	2009	Payment surplus or deficiency (+,-)
								2007	2008	2009
Most liquid assets	8904	140238	5772	Most urgent obligations	15556	94159	70425	-6652	46079	-64653
Quickly implemented	137889	137889	452590	Short-term liabilities	263132	175105	400672	-125243	-37216	51918
Slow to implement	171656	144035	246143	Long-term liabilities	0	0	125369	171656	144035	120774
Difficult to implement	131576	223183	253406	Permanent liabilities	171337	377126	361445	-39761	-153943	-108039

To determine the liquidity of the balance sheet, you should compare the results of the asset and liability groups:

2006 2007 2008

A1<П1 А1>P1 A1<П1

A2<П2 А2<П2 А2>P2

A3>P3 A3>P3 A3>P3

A4<П4 А4<П4 А4<П4

Conclusion: Analysis of balance sheet liquidity shows that the most liquid assets are not enough to cover the most urgent liabilities in 2007 and 2009, and by 2009 there is a significant increase in losses due to an increase in accounts payable. The number of quickly realizable assets covers short-term liabilities only by the third year, therefore, the balance sheet has no current liquidity. The third inequality of systems corresponds to the optimal value of the absolute liquidity of the balance sheet, that is, slowly realized assets for all years cover the value of long-term liabilities and do not have a deficiency, this indicates the presence of a balance sheet perspective, which represents a forecast of future receipts and payments. The fourth inequality of the system also corresponds to the optimal value of the absolute liquidity of the balance sheet and is balanced in nature and at the same time is the minimum condition for the financial stability of the enterprise, because shows that the enterprise has its own working capital.

Solvency is the ability of an enterprise to repay its short-term financial obligations in a timely manner and in full.

Table 7 - Analysis of solvency of LLC "Lesopromyshlenny complex"

An analysis of solvency showed that in 2007 the enterprise was not solvent, because the calculated indicators generally do not correspond to the optimal values. For example, the current liquidity (coverage) ratio is approximately 2 times lower than the optimal value; this ratio shows the payment capabilities of the enterprise. Failure to comply with the established standard creates a threat to the financial instability of the organization due to varying degrees of liquidity of assets and the impossibility of their urgent sale. The deviation of the absolute liquidity ratio from the optimal value indicates that the enterprise in 2007 can cover only 3% of short-term debt with available funds, instead of 20%, in 2009 - only 1%. In 2008, the enterprise is solvent, because all calculated coefficients correspond to optimal values.

3. Accounts receivable valuation and management

3.1 Accounts receivable analysis

Funds in accounts receivable indicate a temporary diversion of funds from the enterprise’s turnover, which causes an additional need for resources and can lead to a tense financial situation. Let's consider the composition and structure of the enterprise's working capital (Table 8).

Table 8 - Composition and structure of working capital in LLC "Lesopromyshlenny complex"

Types of current assets	2007		2008		2009
	Thousand roubles.	%	Thousand roubles.	%	Thousand roubles.	%
Reserves	166383	52,25	139323	32,92	242989	34,49
Including:
Raw materials	107995	33,91	64577	15,26	63115	8,96
	32567	10,23	54724	12,93	166583	23,65
Finished products	23901	7,51	18613	4,40	11085	1,57
Future expenses	1920	0,60	1406	0,33	2206	0,31
VAT	5273	1,66	4712	1,11	3154	0,45
	137889	43,30	138934	32,83	452590	64,24
Including:
Buyers and clients	67502	21,20	51201	12,10	112835	16,02
Short-term financial Attachments	180	0,06	126684	29,93	61	0,01
Cash	8724	2,74	13554	3,20	5711	0,81
Total	318449	100	423207	100,0	704505	100,00

During the analyzed period from 2007 to 2009, there is an increase in working capital. The largest share in the composition of working capital is accounts receivable, on average for 2007 - 2009 more than 50%, and in 2009 64.24%. This is due to untimely payments from customers for products and services provided, which does not have a favorable impact on the financial condition of the enterprise.

A significant share in the structure of working capital is made up of inventories of raw materials and supplies, but there is a tendency towards their reduction; in 2007, the value of inventories was 52.25%, and in 2009 it was already 34.49%, the reduction in the amount of inventories of raw materials and materials was expressed as a result of a decrease in production volumes products (works, services).

We will consider the features of the circulation of working capital based on the data on the structure of the organization's working capital as of the 1st day of each quarter of 2009.

Table 9 - Composition and structure of working capital for the first quarters of the reporting year (2009)

Types of current assets	I quarter		II quarter		III quarter		IV quarter
	Thousand roubles.	%	Thousand roubles.	%	Thousand roubles.	%	Thousand roubles.	%
Reserves	218951	47,28	201792	44,93	232389	76,97	242989	34,49
Including:
Raw materials	59884	12,93	61894	13,78	68679	22,75	63115	8,96
Costs in work in progress	105603	22,81	94872	21,13	119110	39,45	166583	23,65
Finished products	26144	5,65	22241	4,95	22038	7,30	11085	1,57
Future expenses	27320	5,90	22785	5,07	22562	7,47	2206	0,31
VAT	3452	0,75	3245	0,72	1568	0,52	3154	0,45
Accounts receivable (within 12 months)	126846	27,39	143995	32,06	56776	18,81	452590	64,24
Including:
Buyers and clients	41227	8,90	51624	11,50	30051	9,95	112835	16,02
Other debtors
Short-term financial attachments	95525	20,63	95229	21,20	241	0,08	61	0,01
Cash	18294	3,95	4828	1,08	10942	3,62	5711	0,81
Total	463068	100,0	449089	100,0	301916	100,0	704505	100,00

Considering the circulation of working capital in 2009. It should be noted that an increase in inventories is observed from the 1st to the 3rd quarter by 29.7% and in the 3rd quarter they occupy the largest share in all working capital - 76.97%. It should also be noted that the majority of inventories in this quarter are costs in work in progress (39.45% of the total working capital). In the 4th quarter, the largest share was accounted for by accounts receivable – 64.24%.

Accounts receivable in the 2nd and 4th quarters had the largest share in all current assets, 32.06% and 64.24%, respectively. In the 1st quarter there is a decrease of 4.67%, and in the 4th it decreases by 2 times, relative to the 2nd quarter.

Cash in all quarters is used relatively equally and therefore its share in working capital is low and for the entire period it is less used.

Let's consider the composition and structure of accounts receivable at LLC "Lesopromyshlenny Kompleks" for the analyzed period. (Table 10)

Table 10 - Composition and structure of accounts receivable at LPK LLC

Accounts receivable from LPK LLC are represented by the following categories: settlements with buyers and customers - 31.7% (on average for 3 years); advances issued (prepayment for products) – 64.2%; settlements with other debtors – 4.1%. During the analyzed period, the company's accounts receivable increased by 314,701 thousand rubles. or 3.3 times. This happened due to an increase in the share of advances issued by 273,524 thousand rubles. or 5.5 times. This increase is explained by the fact that the company uses advance payment for materials to suppliers without shipping them, which leads to the formation of hidden receivables. The increase in accounts receivable items is due to the too high rate of increase in sales volume in the company.

3.2 Credit policy and its role in accounts receivable management

Let's consider the lending policy implemented by LPK LLC.

The selection of buyers is carried out by analyzing their adherence to reliable discipline in the past, their current solvency, the level of their financial stability and other financial indicators characterizing the financial condition of the buyer.

The main goal of Timber Industry Complex LLC is to obtain additional profit by increasing logging, expanding the range of products, improving the quality of products, and providing jobs.

LLC "LPK" supplies its products both to the domestic market and for export (external).

The main buyers of forest products of LPK LLC on the domestic market according to 2009 data are:

· fan raw materials - Lestransservice LLC, Moscow; JSC "Fanplit" Kostroma;

· coniferous pulpwood - Volga OJSC, Balakhna; Kronostar LLC, Sharya;

· hardwood pulpwood - Kronostar LLC, Sharya;

· technological firewood - Kronostar LLC, Sharya;

· wood flour - JSC "Srednevolzhsky plant of polymer products" Samara region, LLC "Technoplast" Nizhny Novgorod, JSC "Karbolit" Moscow region, LLC "Bridge" St. Petersburg, etc.

· profile parts and parts for carpentry for garden houses - Partner-M LLC

The main buyers of LPK LLC products on the foreign market are:

· forest products for export - Odek Holland S.A., Canada,

· export lumber - “Romane Legnami” (Italy) and “Lincoln WOOD” (Switzerland),

· wood flour – Crimean Titan CJSC, Vant LTD LLC

Settlements between enterprises are based on contractual relations. LPK LLC enters into a purchase and sale agreement with buyers who wish to purchase the company's products for the shipment of products, work performed or services provided by the company. The conclusion of contracts takes place during a direct meeting of the heads of enterprises from both sides.

Contracts in form concluded by an enterprise with buyers are bilateral (buyer-seller). They primarily indicate:

· names of enterprises acting as the “Buyer” - on the one hand, and the “Supplier” - on the other;

· subject of the contract (“goods”);

· order and terms of delivery;

· price and total amount of the contract;

· payment procedure;

· responsibility of the parties;

· Force Majeure;

· other conditions, incl. the moment the contract comes into effect, possible reasons for its termination.

· Addresses and bank details of the parties.

Then the agreement is signed and sealed.

Prices for products depend on the sales market and the cost of production. The sales market depends on supply and demand, and where the product is in demand, the price is higher.

LPK LLC enters into contracts with foreign companies. Prices for products sold for export are higher, since they include delivery costs and other costs, but in fact, products are sold both for export and for the domestic market at the same prices.

When mutual obligations arise, settlements are carried out using offsets.

For non-cash payments, the company uses money orders, which represent an order from a business entity to transfer a certain amount from its account to the account of another business entity, having an electronic form.

After shipment of the products, Lesopromyshlenny Kompleks LLC issues an invoice indicating the quantity, price and total cost of the products. In accordance with the concluded agreement and on the basis of the invoice, the buyer is issued an invoice to confirm the buyer's payment, the amount of payment and the marketability of this transaction. A consignment note is issued, and an invoice is issued no later than 5 days.

LPK LLC classifies its product buyers into the following categories:

· buyers to whom a loan can be provided to the maximum extent, this group includes Vetluzhskaya Trading Company LLC, Kronostar LLC;

· buyers to whom a loan can be provided in a limited amount, determined by the level of acceptable risk of not repaying the debt, this group includes OJSC Parfinsky Fan Kombinat;

We will calculate the profitability of price discounts and deferred payment

Table 11 - Comparative calculation of the profitability of discounts and deferred payment

Let’s say that if LPK LLC begins to provide discounts to its customers if they reduce the payment period to 30 days, then the loss for every 1000 rubles. revenue for the enterprise will be 10 rubles.

In order to determine the specific reasons for the formation of receivables, we will conduct an internal analysis of the amount of receivables based on data from the accounting and financial statements.

3.3 Accounts receivable turnover and ways to accelerate it

Let's consider the analysis of turnover of current assets in LLC "Lesopromyshlenny complex"

Table 12 - Analysis of turnover of current assets in LLC "Lesopromyshlenny complex"

Analyzing this table, we see that the turnover of current assets in 2009 compared to 2007 decreased by 0.11. The turnover ratio shows the number of turnovers made by defense capital over a certain period and characterizes the volume of products sold per 1 ruble invested in working capital (1 ruble 8 kopecks in 2009). Duration of turnover in days, i.e. the time during which defense assets made 1 full turnover at LPK LLC is reduced by 31 days in 2009 compared to 2007, and on average for the analyzed period (2007-2009) the turnover is 285 days. In 2007, the largest amount of funds released from turnover was observed - 299,711 thousand rubles, as a result of the acceleration of the turnover of working capital; in 2008, funds were attracted into circulation in the amount of 226,213 thousand rubles, and in 2009, funds were again released in the amount of 40,464 thousand rubles.

Accounts receivable management involves, first of all, control over the turnover of funds in settlements. To analyze and evaluate receivables, it is advisable to use absolute and relative indicators in dynamics over a number of years, the most important of which are: the turnover of debtors’ debt obligations, the period of their repayment, the ratio of the total amount of debtors’ debts to the total amount of assets, etc. We systematize these indicators in a table.

Table 13 - Analysis of accounts receivable turnover at Lesopromyshlenny Kompleks LLC

From the above calculations it is clear that the share of short-term receivables in the total value of current assets during the analyzed period increased by 20.9%. This indicates a diversion of funds from circulation. Analyzing the obtained turnover ratios, it can be noted that during the analyzed period the turnover of accounts receivable in 2007 and 2009 was 2 turns, and in 2008 5 turns. This led to an increase in its circulation time, or average collection period (ACP), from 73 days in 2008 to 183 days in 2009, which increased the risk of non-repayment. That is, the average period of time required for an enterprise to receive money after selling its products is 183 days in the reporting period. An important stage in the analysis of receivables is the comparison of receivables and payables. During the analyzed period, this ratio decreased by 2.43 points. This indicates that LPK LLC diverts more funds from its turnover than it attracts into it, which indicates that the enterprise is irrationally using its resources. In addition, this poses a threat to its financial stability.

4. Ways to improve accounts receivable management policies

Accounts receivable management is a specific function of financial management, the main goal of which is to increase company profits through the effective use of accounts receivable as an economic tool. And first of all, accounts receivable is a very variable and dynamic element of working capital, significantly depending on the policy adopted by the organization regarding product buyers. Since accounts receivable represent the immobilization of own working capital, i.e. In principle, it is not beneficial to the organization, then the conclusion clearly suggests itself about its maximum possible reduction. Accounts receivable can be reduced to a minimum, however, this does not happen for many reasons, including competition. The selection of potential buyers and the determination of the terms of payment for goods provided for in contracts are of great importance. The selection is carried out using informal criteria: compliance with payment discipline in the past, the buyer’s forecast financial capabilities to pay for the volume of goods requested by him, the level of current solvency, the level of financial stability, the economic and financial conditions of the selling enterprise (overstocking, degree of need for cash, etc.). P.).

It is important to prevent a further increase in the share of accounts receivable in the total volume of current assets of the enterprise - this may entail a decrease in all financial indicators, a slowdown in the turnover of resources, downtime due not to internal problems, but to external ones, and a decrease in the ability to pay one’s obligations to creditors.

Accounts receivable management includes several main tasks:

1. preliminary verification of the debtor at the initial stage of cooperation

2. planning acceptable limits of receivables

3. accounts receivable financing

4. accounting, control, assessment of the effectiveness of receivables

5. collection of overdue receivables

6. handling claims with undisciplined debtors

Thus, in order to effectively improve the accounts receivable management policy, it is necessary to evaluate the effectiveness of each of these tasks.

Conclusion

Accounts receivable are the requirements of an enterprise in relation to other enterprises, organizations and clients to receive money, supply goods or provide services, or perform work.

LLC "Lesopromyshlenny Kompleks" is a commercial organization established for the purpose of organizing economic and commercial activities in the domestic and foreign markets, to meet public needs and make a profit.

Accounts receivable from LPK LLC are represented by the following categories: settlements with buyers and customers - 31.7% (on average for 3 years); advances issued (prepayment for products) – 64.2%; settlements with other debtors – 4.1%. The increase in accounts receivable items is due to the too high rate of increase in sales volume in the enterprise.

A special feature of LPK LLC is that the company does not have long-term receivables, but only short-term (normal) ones, that is, payments for which are expected within 12 months after the reporting date. This indicates that customers pay for shipped products on time.

The amount of receivables is the highest among the main debtors-buyers, since they have constant, stable connections with LPK LLC and therefore inspire trust. This allows them to be credited by selling products on credit without much risk for the enterprise.

The company has unjustified or overdue short-term receivables for a period of more than 3 months, its share is 1.9%, this is explained by the fact that the company paid money to the supplier for the products, but these products did not arrive within 3 months, That. overdue accounts receivable have arisen.

The objectives of accounts receivable management at LPK LLC are:

Formation of the principles of settlements of the enterprise with counterparties for the coming period;

Determination of the possible amount of current assets diverted into accounts receivable for advances issued;

Formation of conditions for ensuring debt collection;

Formation of a system of penalties for late fulfillment of obligations by counterparties.

In order to control the timing of repayment of receivables, LPK LLC ranks them according to the timing of their occurrence, using the following grouping in days: up to 30 days, from 30-60 days, from 60-90 days and more than 90 days.

Since the company has existed on the market for a long time, and it has developed a certain status, therefore, buyers, cooperating with it, try to pay off their debt on time or as early as possible.

Analyzing the obtained turnover ratios, it can be noted that during the analyzed period the turnover of accounts receivable in 2007 and 2009 was 2 turns, and in 2008 5 turns. This led to an increase in its circulation time, or average collection period (ACP), from 73 days in 2008 to 183 days in 2009, which increased the risk of non-repayment. That is, the average period of time required for an enterprise to receive money after selling its products is 183 days in the reporting period. An important stage in the analysis of receivables is the comparison of receivables and payables. During the analyzed period, this ratio decreased by 2.43 points. This indicates that LPK LLC diverts more funds from its turnover than it attracts into it, which indicates that the enterprise is irrationally using its resources. In addition, this poses a threat to its financial stability.

In order to speed up settlements, it is necessary to increase the turnover of accounts receivable, i.e. reduce the period of its circulation into money. To do this, it is necessary to reduce the share of accounts receivable in the total amount of current assets. An enterprise can achieve this by using advance payment in settlements with customers. Let's consider how the company's use of advance payment in the amount of 40% in 2009 for all settlements with customers will affect accounts receivable turnover. In this case, accounts receivable at the end of 2009 will decrease by 181,036 thousand rubles. (40%*452590), and its share in current assets will decrease by 25.7%. At the same time, the turnover of receivables increased by 2 turns and amounted to 4 turns, the repayment period decreased by 91 days (183 days - 92 days) and the risk of non-payment of debt decreased. In this case, the company will need 91 days for the receivables to be converted into cash. That. enterprises, in order to improve settlements and speed up their payments, use advance payment in settlements with buyers and customers.

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To determine the state of obligations at the enterprise under study, Favorit LLC, it is necessary to consider the composition and structure of accounts payable and calculate the ratio of accounts receivable and accounts payable. Accounts payable can be considered as attracting borrowed funds to one's own working capital, and if penalties do not increase on it, then, in principle, it is beneficial for the company to have accounts payable. In Table 8 we consider the composition and structure of short-term liabilities of the enterprise under study.

Table 8 - Composition and structure of short-term liabilities of Favorit LLC for 2008-2009.

Types of liabilities			Deviation (+,-)
amount, thousand rubles		amount, thousand rubles		amount, thousand rubles
1. Loans and credits
2. Accounts payable, incl.
Suppliers and contractors
Debt to staff
Debt to extra-budgetary funds
Debt on taxes and fees
Other creditors

As can be seen from the data given in Table 8, the total amount of short-term liabilities for 2009 increased significantly and amounted to 47,210 thousand rubles, the increase amounted to 21,546 thousand rubles. This increase was influenced primarily by the item of accounts payable: suppliers and contractors, which is the main item of accounts payable, its share in the structure of short-term liabilities is 22.97% for 2008 and 41.6% for 2009. To reduce this debt to suppliers and contractors, it is possible to propose such measures as restructuring accounts payable, in particular for suppliers and contractors, since they occupy a large share of the total debt, as well as carrying out mutual offsets.

The item loans and credits tend to decrease, which indicates that the company is repaying this item.

In 2009, the most significant item was personnel debt, which in absolute terms increased by 1,891 rubles, and its share increased by 1.6% and amounted to 4.8% in 2009.

Accounts payable items tend to increase, which indicates an increase in the dependence of Favorit LLC on borrowed sources.

To determine the efficiency of using accounts payable, we will make the following calculations:

where Krn and Krk are the amount of accounts payable at the beginning and end of the year. The calculation of accounts payable turnover indicators is given in Table 9.

Table 9 - Accounts payable turnover indicators

Accounts payable at the analyzed enterprise for 2009 are fully paid in 71 days, and as can be seen from the calculation, this indicator tends to decrease. The reason for this was the growth of profits, which made it possible to double the amount of profit tax paid to the budget: from 8,305 thousand rubles to 16,820 thousand rubles.

A decrease in accounts payable turnover may mean:

• - problems with paying bills to suppliers and contractors;
• - organizing relationships with suppliers, providing a more profitable, deferred payment schedule and using accounts payable as a source of obtaining financial resources.

Although there is a trend towards improvement, based on Table 9, we can conclude that the organization has certain financial difficulties associated with a shortage of funds. From the above, the following conclusions can be drawn to improve the financial position of the enterprise:

• 1) it is necessary to monitor the ratio of receivables and payables. A significant excess of accounts payable poses a threat to the financial stability of the enterprise and makes it necessary to attract additional sources of financing;
• 2) if possible, focus on increasing the number of customers in order to reduce the risk of non-payment by a monopoly customer;
• 3) monitor the status of settlements on overdue debts;
• 4) promptly identify unacceptable types of accounts payable: accounts payable for claims, debt under the heading “other creditors”;

To p.kr. 1 = V 1 / RMS 0 = 156969 / 22519 = 6.97

To p.kr. (B) = K p.kr. 1 - To p.kr. 0 = 6.97 - 4.4 = 2.57

K p.kr (Skz) = K p.kr 1 - K p.kr 1 = 4.3- 6.97 = -2.67

The main factor that influenced the reduction in the turnover ratio by 0.1 p. is the increase in the average value of accounts payable and the increase in sales revenue, which led to a decrease in the turnover ratio by 2.67 p.

In the analysis, the indicator of the ratio of receivables and payables, that is, money capital abstracted from circulation and attracted capital as a source of financing current payments, is of great importance. Most often, there is a direct relationship between them. Non-payments to suppliers are often associated with the diversion of cash capital from circulation. If the ratio is 1, then this is considered a normal state of calculations.

The current debt ratio is calculated using the following formula:

Let's calculate the current debt ratio based on data from Favorit LLC:

To current h. (2006)=59319 / 22519 = 2.63

To current h. (2007)= 61941 / 36437 = 1.7

The calculated ratios indicate an almost equal ratio of accounts receivable and accounts payable and indicate the balance of available funds at the enterprise.

The current debt ratio for the analyzed period tends to decrease, which indicates an excess of accounts receivable over accounts payable. Thus, we can conclude that those admitted to Favorit LLC measures to collect receivables are not effective enough.

The need and importance of conducting financial analysis of accounts receivable

A complete assessment of the financial condition of the subject under study is impossible without analyzing the dynamics and structure of receivables. Balance sheet data gives the most general picture of the amount of funds allocated to payments to customers, and also to study the dynamics of this indicator. A more detailed analysis is possible only by using information on analytical accounts intended to reflect data on settlements with debtors.

Note 1

The growth of accounts receivable and its sharp decrease have a negative impact on the activities of the analyzed entities. This is due to the fact that an increase in accounts receivable reduces the volume of working capital of legal entities, and therefore the need for additional resources increases in order to timely repay their obligations. A sharp decrease in accounts receivable may indicate a very possible decrease in sales volumes of manufactured products or services provided as a result of a reduction in buyers using them on credit.

Effective management of accounts receivable is aimed at increasing sales volumes by increasing the sale of products or services on credit to reliable partners and ensures timely collection of debt, is of great relevance and is the most important task for any business entity. Problems with low liquidity of accounts receivable are key problems that can be divided into several other problems:

• optimal volumes and structures;
• rate of turnover;
• quality of accounts receivable.

The issue of improving the analysis of accounts receivable is constantly faced by every business entity (see figure below).

Figure 1. The relevance of improving accounting and analysis of accounts receivable. Author24 - online exchange of student works

Important, comprehensively reflecting the quality of receivables, objects of analysis include:

• long-term accounts receivable (payment terms will occur in more than one year);
• short-term accounts receivable (payment terms will occur in less than one year);
• accounts receivable not paid on time;
• accounts receivable for bills received;
• accounts receivable for budget payments;
• accounts receivable for settlements with subsidiaries and dependent entities;
• advances issued (paid).

This is clearly reflected in the figure:

Figure 2. Types of accounts receivable. Author24 - online exchange of student works

The main directions of financial analysis of receivables and their brief characteristics

Accounts receivable is an important component of working capital.

Characterization and assessment of receivables involves solving the following analytical problems:

• assessment of its fair (liquid) value at each specific date;
• its ranking according to payment terms;
• assessment of its turnover (collection) both in general and for each concluded agreement;
• taking into account temporary factors to differentiate price levels for goods and services sold with deferred payment terms provided to customers;
• diagnostics of the condition and reasons for the negative situation with its liquidity;
• development of a real partner lending policy and implementation of the latest methods of managing it;
• monitoring its current state;
• formation of an optimal reserve policy taking into account the assessment of possible losses on arising doubtful debts.

The most important areas of assessment and analysis of accounts receivable include:

1. average turnover period (repayment);
2. analysis and assessment of the movement of accounts receivable;
3. breakdown of accounts receivable by its counterparties.

The main directions of accounts receivable analysis are shown in the figure:

Figure 3. Main directions of assessment and analysis of the subject's receivables. Author24 - online exchange of student works

When assessing and analyzing accounts receivable, the following indicators should be calculated:

The receivables turnover ratio (ART), expressed by the number of revolutions

The size of accounts receivable is directly dependent on sales volumes, this is reflected by the ratio of sales volumes (B) and the average amounts of accounts receivable (AR), calculated by the formula:

$ODZ (revolutions) = V / DZ$ (1)

Accounts receivable turnover (ART) in days

The most convenient expression for turnover is the duration of turnover in days:

$DZD = DZ \cdot D / V (days);$

$ODZD = D / ODZ (revolutions) $ (2)

Note 2

When conducting an analysis and assessment of receivables, it is necessary to calculate both the share of receivables in the total volume of all current assets (3) and the share of doubtful receivables (4). The last indicator assesses the quality of receivables. Tendencies towards its increase indicate a reduction in liquidity.

Share of receivables in total current assets:

$U_(dz)$ = ($Dz$ / Current assets) $\cdot 100$ % (3)

Share of doubtful debts in accounts receivable:

$U_(sdz)$ = (Doubtful size of dz/Total dz) $\cdot 100$ % (4)

Accounts receivable turnover should be analyzed in comparison with past reporting periods. There are other indicators that are used in practice (Figure 4).

Figure 4. Key indicators of accounts receivable turnover. Author24 - online exchange of student works

Using assessment and financial analysis of accounts receivable for the purpose of its management

The procedure for managing receivables is included in the complex of intra-organizational financial analysis, and is also included in management control.

An effective management system is dedicated to:

• control over the fulfillment of contract terms and a clear procedure for filing claims;
• quality selection of buyers;
• determining the maximum permissible lending conditions;
• constant monitoring of debtors, volumes of debts, repayment terms;
• targeting a significant number of buyers in order to reduce the risk of non-payment of debt;
• compliance with the procedures for payment of documents and crediting payments;
• control over the ratio of accounts payable and receivable, because a significant difference between them in favor of accounts receivable can create a threat to the financial stability of the entity, which helps to attract additional sources of financing.

In modern conditions, many business entities have difficulties in managing accounts receivable. Therefore, the goal of reducing the risk of losses associated with non-payment of debts forces entities to create reserves for doubtful debts. At the same time, there is a whole range of methods for managing accounts receivable.

The accounts receivable management process is presented in Figure 5.

Figure 5. Accounts receivable management. Author24 - online exchange of student works

Note 3

The most important goals of financial analysis of receivables are the development, formation and approval of a modern credit policy of business entities in relation to partners or the proposal of measures to improve the existing one with the aim of increasing the entity’s profit, reducing the risks of non-payment and reducing the timing of settlements.

A modern accounts receivable management policy provides for optimal calculations of the entire volume of debt, timely provision of its collection and expansion of sales of products or provision of services. The effectiveness of developing a receivables management policy largely depends on the knowledge and ability to use financial analysis techniques for managing the obligations of business entities.

The main methods of financial analysis for managing accounts receivable are presented in Figure 6.

Figure 6. Accounts receivable management methods. Author24 - online exchange of student works