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Journal articles on the topic 'Payables Management'
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1
Liudmyla, Jaremenko. "FORMATION OF ACCOUNTING INFORMATION OF ACCOUNTS RECEIVABLE AND ACCOUNTS PAYABLE." University Economic Bulletin 36/1 (April 17, 2018): 147–54. https://doi.org/10.5281/zenodo.1219770.
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The subject of the study is theoretical, methodological and practical aspects of accounting for accounts receivable and payables. The purpose of the study is to determine the peculiarities of management of accounts receivable and payables at Ukrainian enterprises. Methodology of work. The work is performed on the results of research of modern domestic and foreign views on the peculiarities of management of accounts receivable and payables. Results of work In the article the essence of receivables and accounts payable is considered. The features of the management of accounts receivable and payables at domestic enterprises are described. The accounting of accounts receivable and accounts payable is described. The basic methods of management of accounts receivable and accounts payable are determined. The field of application of results. Organization and conducting of scientific researches on peculiarities of management of accounts receivable and payables at domestic enterprises taking into account international standards. Conclusions. Proper accounting of accounts receivable and payables at the enterprise of any form of ownership is essential, thus contributing to the ordering of information, transparency, accuracy and reliability of data on settlement operations for debt obligations (with debtors and creditors). The stability of the financial position of the company is the key to its further economic and financial growth.
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Aliev, Gadzhimurad R. "MODERN DEMAND OF MANAGEMENT OF RECEIVABLES AND PAYABLES AT THE ENTERPRISE." EKONOMIKA I UPRAVLENIE: PROBLEMY, RESHENIYA 2/3, no. 122 (2022): 26–32. http://dx.doi.org/10.36871/ek.up.p.r.2022.02.03.004.
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Accounts receivable and accounts payable management is an effective tool for increasing the competitiveness of enterprises in today’s market conditions. Since the deferred payment, a commercial loan allows you to increase the number of customers, revenues and profits, while accounts payable attract additional resources to the company. Sometimes there is a situation of formation of overdue receivables and payables, and sometimes their share of the total amount of sales of goods and services is quite high. Therefore, with inefficient management of receivables and payables, poor-quality accounting and analysis, there is a risk of loss of solvency, profit, and sometimes bankruptcy of the enterprise. Currently, the problem of optimizing receivables and payables and ensuring balance is becoming a key issue for almost every enterprise.
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Sablina, N., and O. Lytovchenko. "MODELING THE PROCESS OF DEBT MANAGEMENT IN THE SYSTEM OF ADMINISTRATION OF FINANCIAL ACTIVITIES OF THE ENTERPRISE." Series: Economic science 2, no. 169 (2022): 49–56. http://dx.doi.org/10.33042/2522-1809-2022-2-169-49-56.
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The article considers topical aspects of managing receivables and payables of the enterprise as a prerequisite for improving payment discipline. The essence of debt management in the system of administration of financial activity of the enterprise, the economic nature of receivables and payables, the advantages and disadvantages of the formation of receivables and payables of the enterprise are studied. Part of the receivables and payables in the financial and economic activities of the enterprise is inevitable and must be within acceptable limits, respectively, not to cause financial risks that may cause bankruptcy. The article emphasizes the need for rational and sound management of receivables and payables, as it has a direct impact on the effective functioning and development of the enterprise, the level of its financial results and image among partner companies. The reasons for the formation and impact on the activities of enterprises receivables and payables are outlined. Factors influencing the amount of accounts payable are considered. The main tasks of receivables and payables management of the enterprise are researched and formulated. The system of measures for management of receivables and payables of the enterprise is investigated and generalized. the company needs to form a certain model of business process management. In order to increase the efficiency of receivables and payables management at enterprises, a structural and functional model of the company's receivables and payables management process has been developed. The conceptual directions of improving the management of receivables and payables are given and the need to strengthen the practical component of the proposed recommendations is emphasized.
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Rybalko, Olena M., and Anastasiia V. Bondarenko. "The Accounting for Payables and Its Analysis." PROBLEMS OF ECONOMY 3, no. 53 (2022): 137–42. http://dx.doi.org/10.32983/2222-0712-2022-3-137-142.
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Today, payables are one of the fundamental elements necessary to assess the efficiency and profitability of any enterprise. The proposed study is concerned with the issues of accounting and analysis of accounts payable at domestic enterprises. The article substantiates the theoretical foundations and analyzes the practical experience of accounting for payables in Ukraine in accordance with the main goal. The differences and similarities in the interpretation of the concept of «accounts payable» by a large number of scholars and researchers are outlined. The conditions of shortcomings of increasing the level of accounts payable to a level higher than a normed one are analyzed. The procedure for analyzing accounts payable is examined. The model of payables management in the enterprise is distinguished. The methodological legal principles of management of this type of obligations in Ukraine are described. The article also demonstrates the positive prospects for conducting an efficient analysis of accounts payable. Statistical changes in the dynamics of current accounts payable at enterprises of various forms of ownership and size, including large, medium, small and micro businesses of Ukraine during 2013-2020, were computed. Based on the trend of increasing the level of payables and the available official information on this issue, assumptions have been made about the dynamics of current accounts payable during 2021-2022. A list of proposals for improving the organization of analytical accounting of settlements with borrowers is also outlined. The direction of further research work is the search for new ways to constantly improve the process of payables management at domestic enterprises, which will contribute to the development of the economy in general.
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BONDARENKO, Olha, and Iryna MASIUK. "Ways to improve minimization of receivables and payments and management by them." Economics. Finances. Law, no. 4 (April 17, 2020): 26–29. http://dx.doi.org/10.37634/efp.2020.4.5.
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Introduction. To date, every entity has faced accounts receivable and payable. There are times when debt becomes overdue. An entity cannot repay its debt because debtors do not repay their debt. In fact, receivables and payables are closely linked, which in turn has a negative effect on the balance sheet and financial performance of any counterparty. This article discusses cases of arrears and ways of overcoming (reducing) accounts receivable and payables. The purpose of the paper is to study the factors that influence the increase in accounts receivable and payable within the internal and external activities of the enterprise. Results. In today's economic environment, a large number of Ukrainian enterprises went bankrupt and liquidated because they were unable to pay their debt to creditors. Also this situation arose due to a certain amount of cash, which was in circulation and in time did not enter the current account of the enterprise for payment of accounts payable. On the balance sheet receivables and payables account for a large percentage of both their and others' debt. We'll look at how and under what conditions debt can be reduced. Conclusion. It is advisable to balance receivables and payables in order to control the debt at the enterprise. The constant cash flow should not stop. The debt of the debtors goes to pay off the debt to the creditors. The optimal ratio is when the accounts payable exceeds accounts receivable by 10-20%.
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Shashkova, Tatyana N., та Larisa Zh Khabibullina. "ДЕБИТОРСКАЯ И КРЕДИТОРСКАЯ ЗАДОЛЖЕННОСТЬ: СОВРЕМЕННОЕ СОСТОЯНИЕ, ПРОБЛЕМЫ И МЕТОДЫ УПРАВЛЕНИЯ". Vestnik BIST (Bashkir Institute of Social Technologies), № 2(59) (29 червня 2023): 111–17. http://dx.doi.org/10.47598/2078-9025-2023-2-59-111-117.
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The subject of the study is accounts receivable and accounts payable. The purpose of the study is to consider the state of receivables and payables in modern economic conditions, problems and methods of its management. The objectives of the study are to study the dynamics of the debt of economic entities, methods and methods of managing it, identifying problems of non-repayment in a timely manner and in full. The novelty of the study: the theoretical foundations of the management of receivables and payables, the problems of its occurrence are disclosed, and the dynamics and structure of debt are reflected on the basis of statistical information. Conclusions: the excess of accounts payable over accounts receivable, formed by enterprises operating in the country, was revealed; the problems of debt management and the need to improve methods of monitoring the fulfillment of obligations by counterparties are disclosed.
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AFANASIEVA, Inna, Nina OVSIUK, Kateryna KALUZHYNSKA, and Oleksandr DUBROV. "Payables management: accounting aspect." Economics. Finances. Law 12/2024, no. - (2024): 6–9. https://doi.org/10.37634/efp.2024.12.1.
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The features of accounts payable as the main source of economic resources formation to support the solvency of a business entity are studied; the importance of correct assessment and control to ensure the effectiveness of the debt management system. The factors influencing the formation of debt are considered, with a breakdown into external (tax system and tax policy of the state, state of the economy, nature of inflationary processes, state of credit policy relations, monetary policy of the NBU, balance of goods and money supply) and internal (state of payment discipline of the business entity, qualification of employees of the accounting and financial service, nature of settlements, procedure for execution of contracts, volume of debt, volume of activity) factors. The factors influencing the effectiveness of accounts payable management, which should be controlled by the heads of certain departments, are detailed, namely: the availability of complete and reliable information on the terms of debt repayment, assessment of the need for commercial lending, distribution of functional responsibilities, responsibility and control over the presence of overdue debt, regulation of the procedure for working with accounts payable, efficiency of procedures for raising funds by the enterprise. It is proven that the growth of accounts payable of a business entity may be associated with the imperfection of the debt management system, the key elements of information support are the accounting system and proper operational control over the status and dynamics of debt. The provisions of the accounting policy for accounts payable should take into account not only the norms of current legislative and regulatory documents, but also become an effective tool for information support for accounts payable management. It has been proven that the elements of the accounting policy should include the conditions for recognition, assessment at the date of occurrence, repayment and reflection in financial reporting; methods of control over the formation and repayment of individual types of accounts payable; the composition of financial costs associated with attracting and servicing debt; the organization of optimal document flow; a working chart of accounts with detailed information by type of debt, composition and terms of accounts payable; the organization of a center for controlling accounts payable.
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MULYK, Tetiana, Olena TOMCHUK, and Lidiia FEDORYSHYNA. "ANALYTICAL PROVISION OF THE ENTERPRISE'S DEBT IN THE CONTEXT OF CRISIS MANAGEMENT." "EСONOMY. FINANСES. MANAGEMENT: Topical issues of science and practical activity", no. 1 (41) (January 2019): 146–60. http://dx.doi.org/10.37128/2411-4413-2019-1-12.
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The system of analytical support of the enterprise in conditions of crisis management is investigated. The approaches to understanding the essence of crisis management, its purpose, role and the basic requirements to the formation of the system of crisis management are specified. It is established that the crisis management of the enterprise is a complex system that is different in its strategic nature and aims at eliminating of possible and existing problems in its activities by developing and implementing a special program using the full potential of modern management. It is established that the crisis management system should provide an appropriate approach to the enterprise's debt in order to effectively manage it, to ensure optimum balance between receivables and accounts payable, to prevent the occurrence of overdue debts, to systematically monitor the calculations, and so on. The analysis of receivables and accounts payables by branches of Ukraine is carried out and the significant excess of receivables is noted. It is indicated that the management of the enterprise will be interested in information on: the amount, dynamics, composition and structure of its indebtedness; quality of debt; the reasons that caused the occurrence and existence of debt; the frequency of occurrence and repayment of debts; influence of debt on the financial condition of the enterprise; the expediency of investing in an enterprise's debt, etc. It is established that the purpose of analysis of receivables and accounts payable is to identify the amount of justified and unreasonable debt; changes for the analyzed period, the reality of receivable and amounts payables, reasons and the prescription of accounts receivable. In this regard, the analysis of receivables and accounts payables is an important part of the financial analysis at the enterprise and allows you to identify not only the indicators of current and prospective solvency of the enterprise, but also factors influencing their dynamics, as well as assess quantitative and qualitative tendencies in the financial state of enterprises in the future. It is determined that in the process of organization of debt analysis it is necessary to separately evaluate and study the availability, composition and structure of the company's debt, its frequency, quality and causes, including overdue. To study the composition and structure of the debt, its dynamics it is appropriate to make special analytical tables, graphs, drawings. In the course of the analysis it is also appropriate to compare the amounts of receivable and payables. According to the results of this comparison, the following factors can be identified: increase or decrease of receivables; increase or decrease in payables. It is stated that the management of receivable and accounts payables at the enterprise is the process of development and implementation of managerial decisions regarding the consistency of their size and speed of the movement in time, providing the necessary profit and optimal amount of available funds. The main components of the enterprise debt management system are presented in the article.
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Adetona-Ibrahim, Toluwalashe, Najighjigh Igba, Mujtaba Liman Abdullahi, David Yakubu, and Faiza Haruna Maitala. "Working Capital Management and Profitability of Consumer Goods Companies in Nigeria." European Journal of Business and Innovation Research 13, no. 1 (2025): 71–86. https://doi.org/10.37745/ejbir.2013/vol13n17186.
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This study investigates the impact of working capital management (WCM) on the profitability of consumer goods companies in Nigeria. Using a quantitative research design, panel data from five selected companies over a five-year period (2019–2023) were analyzed. Key working capital metrics, including Accounts Receivable Period (ARP), Accounts Payable Period (APP), and Inventory Turnover, were examined alongside profitability measured by Return on Assets (ROA). A Fixed Effects regression model was employed to evaluate the relationship between WCM components and profitability, while diagnostic tests ensured the robustness of the results. Findings reveal that ARP and APP have statistically insignificant impacts on ROA, suggesting that receivables and payables management practices may not significantly influence profitability. Similarly, Inventory Turnover showed no robust relationship with profitability, highlighting the complexity of WCM in driving financial performance. Control variables such as firm size and leverage were marginally significant, suggesting their potential role in profitability. The study concludes that while effective WCM practices are essential for operational efficiency, their impact on profitability may depend on firm-specific and industry-specific factors. Recommendations include optimizing inventory management, streamlining receivables and payables cycles, and tailoring WCM strategies to the unique challenges of Nigeria’s consumer goods sector.
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Mukhwana, William Wanyonyi, and Julius Miroga Dr. "Factors of Cash Flow Management on Financial Performance of Selected Commercial Banks in Bungoma County, Kenya." International Journal of Recent Research in Commerce Economics and Management (IJRRCEM) 10, no. 3 (2023): 187–201. https://doi.org/10.5281/zenodo.8366056.
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<strong>Abstract:</strong> Cash flows are narrowly interconnected with the concepts of value, interest rate and liquidity (Auerbach, A. J., & Devereux, M. P. (2013). Proper cash flow management systems in business help the managers to: Control spending with respect to the specified budget, minimize borrowing and maximise the opportunity cost of its company’s resources (Bari et al., 2019). Cash flow management as defined by Ward (2020) is the “process of monitoring, analyzing, and optimizing the net amount of cash receipts minus cash expenses. Net cash flow is an important measure of financial health for any business”. The purpose of the study was to analyze the selected factors of cash flow management on Financial Performance of commercial banks in Bungoma County, Kenya. Specific objectives of the study was to assess the effect of payables management on Financial Performance of commercial banks in Bungoma County, Kenya. The study was based on Portfolio theory of Cash Management, Cash Management theory, Transaction Cost theory, Free Cash Flow theory and pecking order theory. The study used descriptive research design. The target population of the study was 68 employees in management and supervisory cadres in commercial banks in Bungoma County, Kenya. Census was adopted since the target population was small. Data collection instruments was questionnaires. Data collection methods was both primary and secondary. The data was analyzed using Statistical Program for Social Sciences (SPSS) windows version 23. Multiple linear regression analysis was carried out to analyze the selected factors of cash flow management on Financial Performance of commercial banks in Bungoma County, Kenya. Pilot test was carried out for validity and reliability of research instruments. Regression analysis was carried out to test the significant levels of one variable to the other in the study. ANOVA was carried out to test the hypotheses of the study. Based on the findings, payables management was found to a significant influence financial performance of commercial banks in Bungoma County. The study recommends that management of commercial banks should universally considered that cash is most liquid asset because it can most quickly and easily be converted into other assets and that commercial banks profitability is influenced by current ratios, quick ratios and cash ratios. The management should take into considerations that dynamic financial management process and its effectiveness is directly correlated with a firm’s ability to realize its mission, goals and objectives. The commercial banks should ensure that accounts payables arise from purchasing goods or services for use in a company’s operations or purchasing merchandise for sale on credit and. that creditor’s turnover, payables deferral period and cash conversion cycle determines payables determines payables management. They should also be informed that accounts payable is the largest single category of short term debt, representing about forty percent of the average corporation’s current liabilities and payables management enhances financial performance of commercial banks. The study was significant to the researchers, banking sector and the government of Kenya in formulation of different financial decisions and in policy making. <strong>Keywords:</strong> Payables management, financial performance. <strong>Title:</strong> Factors of Cash Flow Management on Financial Performance of Selected Commercial Banks in Bungoma County, Kenya <strong>Author:</strong> Mukhwana William Wanyonyi, Dr Julius Miroga <strong>International Journal of Recent Research in Commerce Economics and Management (IJRRCEM)</strong> <strong>ISSN 2349-7807</strong> <strong>Vol. 10, Issue 3, July 2023 - September 2023</strong> <strong>Page No: 187-201</strong> <strong>Paper Publications </strong> <strong>Website: www.paperpublications.org</strong> <strong>Published Date: 21-September-2023</strong> <strong>DOI: https://doi.org/10.5281/zenodo.8366056</strong> <strong>Paper Download Link (Source)</strong> <strong>https://www.paperpublications.org/upload/book/Factors%20of%20Cash%20Flow%20Management-21092023-2.pdf</strong>
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BONDARENKO, Olha, and Iryna MASIUK. "Audit methodology. Formation and write-off of receivables and payables." Economics. Finances. Law, no. 7 (July 30, 2020): 10–13. http://dx.doi.org/10.37634/efp.2020.7.2.
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Introduction. The share of receivables and payables in the structure of the balance sheet has a high percentage, which certainly affects the production process as a whole. Every receivable is someone's accounts payable and vice versa. Each company faced non-payment of debts in any direction. In this article, we will consider the control over settlements with counterparties and the procedure for writing off and forming bad receivables and payables. The purpose of the paper is to study the audit process at the enterprise in the section of receivables and payables. Identify the processes of writing off bad debts. Results. The audit of accounts payable and receivable is relevant in connection with the introduction of the International Accounting Standards in the management of the enterprise, the constant change in the legal framework of Ukraine. Settlements with debtors and creditors for goods and services have a significant impact on the functional activities of the enterprise, so when the audit firm checks all the nuances of accounting in this area, the main factor of fair conclusions is the provision of reliable information. The main source of information is financial statements, where receivables have a significant share in the assets of the balance sheet, and accounts payable in the liabilities of the balance sheet. Conclusion. Debt write-off is an important component in settlements with counterparties. More often than not, we are faced with bad debts. For the correctness of the display of information and write-off of receivables, the company creates a reserve of doubtful debts, which is reflected in account 38 "Reserve of doubtful debts". To write off accounts payable, the company must have important evidence, documents that are approved in accordance with the law.
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Mwangi, Paul Mburu, and Fredrick Warui Dr. "EFFECT OF ACCOUNTS PAYABLES MANAGEMENT ON FINANCIAL PERFORMANCE OF MICRO FINANCE INSTITUTIONS IN KENYA." EFFECT OF ACCOUNTS PAYABLES MANAGEMENT ON FINANCIAL PERFORMANCE OF MICRO FINANCE INSTITUTIONS IN KENYA 11, no. 4 (2023): 341–47. https://doi.org/10.5281/zenodo.10123863.
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<strong>Abstract:</strong><i> </i>Since the first institution was granted a license by the Central Bank of Kenya in 2009, the majority of microfinance institutions in Kenya have experienced losses. For example, the total loss before tax for the microfinance institutions indicated a general drop in performance. Reduction in financial income was a major factor in the profitability sector's collapse. The industry recorded a lower return on equity ratio and return on assets due to a fall in performance. Therefore, this study sought to investigate the effect of accounts payables on financial performance of Micro Finance Institutions in Kenya. A descriptive research design was adopted in the study. The 13 microfinance institutions in Kenya as of December 31, 2019, as listed on the Central Bank of Kenya website, comprised the study's population. We conducted a census with thirteen MFIs. Using secondary data collection sheets, the study examined data from published financial statements and annual reports covering the previous five years, from 2018 to 2022. The financial performance of Micro Institution was assessed using Return on Assets (ROA). A descriptive statistical analysis, utilizing the mean and standard deviation, was performed on the quantitative data received from the study. In order to determine how much each variable influences the others, the study also used inferential statistics, specifically correlation and multiple regression analysis. Tables were used to display the data. The study discovered a relationship between Kenyan Microfinance Institutions' financial success and their management of accounts payable. According to the study's findings, MFIs prioritized highlighting the benefits that a product or service can offer the consumer, which resulted in a more consultative sales approach. According to the study, MFIs should process map their accounts payable to enable prompt identification of any inefficiencies or bottlenecks. <strong>Keywords:</strong> Accounts Payables Management, Financial Performance.<strong>Title:</strong> EFFECT OF ACCOUNTS PAYABLES MANAGEMENT ON FINANCIAL PERFORMANCE OF MICRO FINANCE INSTITUTIONS IN KENYA<strong>Author:</strong> Mwangi Paul Mburu, Dr. Fredrick Warui<strong>International Journal of Social Science and Humanities Research </strong><strong>ISSN 2348-3156 (Print), ISSN 2348-3164 (online)</strong><strong>Vol. 11, Issue 4, October 2023 - December 2023</strong><strong>Page No: 341-347</strong><strong>Research Publish Journals</strong><strong>Website: www.researchpublish.com</strong><strong>Published Date: 14-November-2023</strong><strong>DOI: </strong><strong>https://doi.org/10.5281/zenodo.10123863</strong><strong>Paper Download Link (Source)</strong><strong>https://www.researchpublish.com/papers/effect-of-accounts-payables-management-on-financial-performance-of-micro-finance-institutions-in-kenya</strong>
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Mihaila, Svetlana, Violeta Codrean, and Nicolai Jieri. "Use of Trade Receivables and Payables Analysis in the Decision-Making Process." Economica, no. 4(126) (December 2023): 32–43. http://dx.doi.org/10.53486/econ.2023.126.032.
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Under the current conditions of the global market economy, effective analysis and management of trade receivables and debts requires strategies aimed at improving results. Monitoring of trade receivables and payables therefore requires increased attention in order to avoid excessive growth in receivables and payables, which would increase the risk of bankruptcy. Thus, the entity’s management must have reliable and relevant information on the economic and financial situation in order to keep the entity’s receivables and payables at an optimal level. This research emphasises the importance of analysing trade receivables and payables and the need for their proper management to improve the entity’s financial position and performance. The methodological approach of the paper involves the use of methodological and statistical-mathematical tools characteristic of the social sciences.
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IGHOROJE, JAMES ESE, and CHINWEOBO E. UMEORA. "WORKING CAPITAL MANAGEMENT OPTIMALITY AND FIRM VALUE: EVIDENT FROM THE NIGERIAN CONSUMER GOODS SECTOR." International Journal of Social Sciences and Management Review 05, no. 04 (2022): 114–24. http://dx.doi.org/10.37602/ijssmr.2022.5410.
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The paper studied working capital management Optimality (account receivable managementARM, account payable management-APM, inventory management-INVM, cash conversion cycle-CCC, and cash conversion efficiency-CCE)and value (Tobins’ Q) of 9 selected quoted consumer goods firms in Nigeria from 2013 to 2020. The data were gotten from the Annual Financial Statements of the 9 selected quoted consumer goods firms in Nigeria from 2013 to 2020 with each having 72 data points for each of the variables. The panel data methodology was based on the random and fixed effects models ascertained using the Hausman Specification test. Evidently, the study supported the Random Effect Model. Furthermore, The study laid claim that showed that Optimality (account receivable management-ARM, account payable management-APM, inventory management-INVM, cash conversion cycleCCC, and cash conversion efficiency-CCE) exhibited mixed effects on the value (Tobins’ Q) of the 9 selected quoted consumer goods firms in Nigeria from 2013 to 2020. Hence, the paper concludes that though account receivables, account payables, inventory, and cash conversion cycle are major drivers of working capital management but such effects are mixed. As such, managers of the consumer goods firms must ensure that it increases their unproductive bill payables while ensuring that all their unnecessary current liabilities are curtailed. More so, they should employ stock optimization techniques that can determine the right quantities of stock to hold. Lastly, they should try to improve the actual cash which was generated from sales within a given time period since cash conversion efficiency contributed minimally to firm value.
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P., Praveen Kumar, and Monisha R. "Employee's Perception about Materials Procurement and Payables Management." RESEARCH REVIEW International Journal of Multidisciplinary 03, no. 11 (2018): 30–33. https://doi.org/10.5281/zenodo.1479087.
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The endeavour of the manufacturing business is to uphold stability between liquidity and profitability. It contracts with sustaining appropriate management of receivables and payables. The credit worthiness of the customer is determined by the time taken for paying back the cash. The capital cost is employed to meet the requirements for accomplishing the receivables and payables for forfeiting suppliers, employees, etc. The administration cost is deserved for inspecting the credit value of customers. The default cost arises for the reason that customers are incapable of paying the debt resulting in bad debts. This will ensure harmless future in terms of money for the business. This study investigates employee’s perception about materials procurement and payables management. Questionnaire is distributed to 60 employees for data collection. Analysis such as mean, factor and variance are used in analysis section.
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Ptashchenko, Liana, and Daria Korniienko. "Tools for assessing of business receivables and payables." Економіка і регіон/ Economics and region, no. 2(77) (July 31, 2020): 37–42. https://doi.org/10.26906/eir.2020.2(77).1946.
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The method of assessing the appropriateness of paying deferred payments to buyers in terms of comparisons of costs and revenues, proposed by scientists of Kyiv National University of Trade and Economics Mazaraki A.A. and Lihonenko L.A., is investigated and its toolkit for estimating the value of receivables and payables is used as an example of the enterprise Poltava Oil-Extraction Plant – Kernel Group, PJSC in 2019. The level of expenditure and income of the enterprise is determined taking into account various factors, and the absolute amount of the effect of the receivables and payables is calculated. The valuation of creditor debt as an element of capital is based on the general concept of the value of capital. The capital prices refer to the relative annual cost of servicing debt to suppliers, investors. The value of the commodity payables is determined on the basis of an estimate of the losses from underpayment of the price discounts that would have been available to businesses in making advance payments. The effectiveness of debts is determined and «balance of value» is analyzed. This made it possible to establish that at Poltava Oil-Extraction Plant – Kernel Group, PJSC in 2019 the effect of lending to consumers in receivables exceeds the results obtained from the use of the accounts payable. However, in order to minimize the «cash gap» the enterprise is advised to use factoring and bill payments, which are reasonably effective tools in the management of payables and receivables, giving discounts to buyers.
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Ogutu, Duncan Odhiambo. "Working Capital Management Practices and Financial Performance in Kenya." African Journal of Commercial Studies 1, no. 2 (2023): 8–14. http://dx.doi.org/10.59413/ajocs/v1.i2.2.
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Gross working capital and net working capital are the two components that can be used to establish the working capital concept. Between current liabilities and current assets, there is a difference called net working capital. Accounts receivable, cash, and inventory are examples of current assets because they are easily convertible into cash; on the other hand, current liabilities are those that are owed to the company right away, such as accounts payable, bills payable, and other financial instruments. Thispaper appraises the interactions between working capital management in terms of cash, inventories, receivables, and payables management in relation to financial performance. The study also highlights two theories relating to working capital management: the liquidity preference theory and the cash conversion cycle. The study concludes that different working capital components have varying effects on the financial performance of manufacturing enterprises. Some studies reveal a favorable association between the components of working capital, whereas others reveal a detrimental relationship.
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Ogutu, Duncan Odhiambo. "Working Capital Management Practices and Financial Performance in Kenya." African Journal of Commercial Studies 1, no. 2 (2022): 8–14. https://doi.org/10.5281/zenodo.7315951.
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<em>Gross working capital and net working capital are the two components that can be used to establish the working capital concept. Between current liabilities and current assets, there is a difference called net working capital. Accounts receivable, cash, and inventory are examples of current assets because they are easily convertible into cash; on the other hand, current liabilities are those that are owed to the company right away, such as accounts payable, bills payable, and other financial instruments. This paper appraises the interactions between working capital management in terms of cash, inventories, receivables, and payables management in relation to financial performance. The study also highlights two theories relating to working capital management: the liquidity preference theory and the cash conversion cycle. The study concludes that different working capital components have varying effects on the financial performance of manufacturing enterprises. Some studies reveal a favorable association between the components of working capital, whereas others reveal a detrimental relationship.</em>
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HLUSHKO, Alina, and Yana PYRIH. "OPTIMIZATION OF THE DEBT OF A CRITICAL INFRASTRUCTURE ENTERPRISE IN TERMS OF STRENGTHENING FINANCIAL AND ECONOMIC SECURITY." Herald of Khmelnytskyi National University. Economic sciences 314, no. 1 (2023): 47–54. http://dx.doi.org/10.31891/2307-5740-2023-314-1-6.
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The article is devoted to the issues of strengthening the financial and economic security of critical infrastructure enterprises of Ukraine under martial law. It is proved that the optimality of the volumes of receivables and payables, their balance, and timeliness of repayment are the basis for ensuring liquidity, solvency, financial independence, and safe functioning of the business entity as a whole. The article analyzes the dynamics, structure, ratio and indicators of turnover of accounts receivable and accounts payable of the critical infrastructure object of JSC “POLTAVAOBLENERGO”. The influence of accounts receivable on the liquidity of the enterprise, its profitability and financial stability is determined. The influence of accounts payable on the financial independence of an enterprise and its solvency is substantiated. The indirect impact of accounts payable on the profitability of an enterprise is proved. It is established that the uncertainty and variability of the business environment, especially under martial law, complicates the process of making management decisions. The level of their validity and effectiveness depends on the ability of management to foresee possible scenarios. Therefore, forecasting is rightly recognized as an integral part of determining the directions of debt optimization. On the basis of forecasting, the risk of debt growth of the researched enterprise is identified and directions for optimizing the amount of receivables and payables are proposed, which will not only improve financial stability but also strengthen the financial and economic security of the enterprise as a whole. The priority measures to optimize the accounts payable of JSC “POLTAVAOBLENERGO” are as follows: introduction of a system of control over accounts receivable and accounts payable at the enterprise; introduction of control over the quality of services provided to consumers; monitoring of settlements with creditors for deferred or overdue debts and identifying reasons for non-compliance with the terms of the contract; obtaining state support under martial law.
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Mwaura, Simon Maina, and Dr Tabitha Nasieku. "Effect of Working Capital Management On The Profitability of Women Owned Small And Medium Enterprises In Nyeri Town, Kenya." International Journal of Social Science and Humanities Research (IJSSHR) ISSN 2959-7056 (o); 2959-7048 (p) 1, no. 1 (2023): 370–77. http://dx.doi.org/10.61108/ijsshr.v1i1.35.
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Working Capital management is one crucial element used to analyze the performance of organizations in their daily operations by ensuring that the there is a balance between profitability and liquidity. This research evaluates the effects of working capital management on the profitabilityof Small and Medium Enterprises. Specifically the study looks at the effect of cash, accounts receivables, accounts payables management on the performance of women owned Small and Medium Enterprises in Nyeri Town, Kenya .The target population was 10 Women owned Small and Medium Enterprises registered by the County Government of Nyeri Kenya and had been in business for more than 5 years. Secondary data for a period of 5years between 2018 and 2022 was collected and analyzed using a panel regression analysis model. The study results indicated that all the three variables under observation, that is cash accounts receivable and payables management had a negative and significant effect on profitability of Women Owned Small and Medium Enterprises in Nyeri County, Kenya. The study recommends that the Enterprises should reduce their average collection period in order to improve their profitability. Data collected showed that the average accounts receivables collection period in the period of 2018 to 2022 was 182.4715 days. Thus to boost profitability the study recommends the Women Owned Small and Medium Enterprises should reduce the account receivables collection period by using incentives to encourage the debtors to pay on time.The average accounts payables payment period was 79.9924 days which was quite high.A firm with a long account payment period frustrates the supplier from supplying any more goods or services to the firms.Thus, the accounts payable period needs to be maintained as low as possible and the firms need to pay any debts promptly if possible.
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Тменова, Е. С., та И. В. Калюгина. "Актуальные вопросы организации бухгалтерского учѐта дебиторской и кредиторской задолженности на примере предприятия ООО "Павловскинвест" Павловского района Воронежской области". ТЕНДЕНЦИИ РАЗВИТИЯ НАУКИ И ОБРАЗОВАНИЯ 70, № 3 (2021): 86–91. http://dx.doi.org/10.18411/lj-02-2021-96.
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This article is devoted to the problems associated with the organization of accounting for payables and receivables. Undoubtedly, the stability of the financial condition of an organization in a modern market economy largely depends on the effectiveness of the management of accounts payable and receivable. The relevance of this topic is determined by the theoretical and practical significance of the problem. In order to increase the financial stability and solvency of the enterprise, the authors offer a list of recommendations for conducting settlements with counterparties.
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Кулинич, Мирослава, Катерина Мельник, Ірина Садовська та Дарина Мельник. "НОРМАТИВНО-ПРАВОВЕ ЗАБЕЗПЕЧЕННЯ ОБЛІКУ ТА КОНТРОЛЮ РОЗРАХУНКІВ З ПОСТАЧАЛЬНИКАМИ ТА ПІДРЯДНИКАМИ". Economic journal of Lesya Ukrainka Volyn National University 3, № 39 (2024): 42–50. http://dx.doi.org/10.29038/2786-4618-2024-03-42-50.
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Annotation. The organization of accounting for accounts payable at any enterprise is quite important, because it contributes to the reliability, correctness and transparency of the display of data from settlement transactions with suppliers and contractors. The article discusses the peculiarities of accounting for payments with suppliers and contractors. The purpose of the article is to clarify the economic meaning of the terms "supplier", "contractor", "creditor debt" and to reveal their role in the country's economy. It was determined that accounts payable is the organization's debt to other legal entities and individuals, which appears as a result of a time gap between the provision of goods and materials, the receipt of goods and services, the provision of services, the receipt of a preliminary cash advance and the date of their actual payment and fulfillment of obligations to third parties. The current legal acts regulating the accounting of settlements with suppliers and contractors were analyzed; the theoretical aspects of their accounting and analytical support are systematized, as well as the documentation of transactions with these counterparties is displayed. Ways and directions for further improvement of accounts payable management are proposed. It was revealed that with the help of keeping analytical documentation, accounts payable will be improved, namely, control of the timeliness of payments with each supplier or contractor for the delivered values will be improved, and as a result, this will have a positive impact on the company's financial condition. It was identified that the main methods of managing payables are: control over the ratio of payables; assessment of accounts payable; analysis of settlements with creditors, their registration.
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Sungatullina, L. B., and L. I. Khanova. "Improving the receivables and payables internal control management." International Accounting 22, no. 12 (2019): 1378–91. http://dx.doi.org/10.24891/ia.22.12.1378.
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YARMAK, Olha, and Kyrylo PROKUDIN. "Management of receivables and liabilities of the enterprise." Economics. Finances. Law, no. 11/2 (November 27, 2020): 28–31. http://dx.doi.org/10.37634/efp.2020.11(2).8.
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Introduction. For economic security and stability of the enterprise is an important topic of research and identification of ways to manage receivables and payables. A significant contribution to solving the problems of theoretical and practical aspects of receivables management of enterprises was made by such domestic scientists as O. Lishchenko, I. Sereda, О. Pustiak, Y. Demchenko, O. Rybalko, M Sychova, N. Sirenko, O. Smirnova et.al. However, the multifaceted nature of the problem requires further research on the theoretical and methodological foundations of ensuring the formation and functioning of an effective management system of receivables of the enterprise. The purpose of the work is in the researching and studying the management system of receivables and payables at the enterprise. Results. However, opinions on the direct organization of debt management of the enterprise are quite different. The model of receivables management, according to O. Lishchenko, I. Sereda, includes five elements. While O. Pustiak and Y. Demchenko believes that the algorithm for managing the company's calculations for goods, works and services includes as many as eight stages. Thus, according to O. Rybalko and M. Sychova, the receivables management algorithm should include seven stages. In turn, the model of accounts payable management according to N. Sirenko and O. Smirnova includes only three elements. However, as we can see from the above information, most authors forget that in the debt management system one of the important stages is their relationship with the basic goals and key performance indicators of enterprises, as well as with the conditions of business. In this case, if the consideration of the basic objectives in one way or another can still be found in the proposed algorithms for debt management of the enterprise, then taking into account the conditions of development of macro- and mesoenvironment of the enterprise is not carried out. Conclusion. Thus, the development of management decisions to optimize the level of receivables and payables should be preceded not only by an analysis of the conditions of existence of the enterprise, but also an assessment of the level of manageability of the debt itself. At the same time, at high and medium levels of management, the company's management should use incentives to reduce the level of debt of the company, while at low and insufficient – mostly “heavy”.
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Bereprebofa, D., M.T. Sinebe, and J.E. Akpotu. "WORKING CAPITAL MANAGEMENT AND FIRMS' FINANCIAL PERFORMANCE: EVIDENCE FROM LISTED NIGERIAN FIRMS." GPH-International Journal of Business Management 06, no. 11 (2023): 01–11. https://doi.org/10.5281/zenodo.10071335.
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<strong>This study investigated the influence of Working Capital Management (WCM) on the financial performance of publicly listed companies in Nigeria. The analysis of secondary data from the period of 2012 to 2021 employed the utilization of cash conversion cycle, Account Receivable Management, and Account Payable Management metrics. The findings of the study indicate that there is statistically significant relationship between the cash conversion cycle and financial performance. The management of cash conversion cycle, accounts receivable and accounts payable showed a statistically significant impact on the financial performance of publicly traded companies in Nigeria. The study therefore suggests that firms should maintain an optimal level of working capital in order to maximize their overall value. Additionally, the effective management of cash flow is deemed to be of utmost importance for organizations while maintaining a balanced working capital management, with particular focus on managing account receivables, payables, and inventory. This is because efficient working capital management is anticipated to have a beneficial influence on the market value of firm.</strong>
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ЛІХОНОСОВА, Ганна, and Єлизавета СТАВЦЕВА. "DIRECTIONS FOR IMPROVING THE ASSESSMENT OF THE USE OF PAYABLES AND RECEIVABLES." Herald of Khmelnytskyi National University. Economic sciences 330, no. 3 (2024): 305–10. http://dx.doi.org/10.31891/2307-5740-2024-330-46.
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The article discusses modern approaches to the assessment of payables and receivables of enterprises in order to increase the efficiency of financial resources management. The main attention is paid to the analysis of problems and shortcomings of existing assessment methods, as well as to the development of new approaches and recommendations for their improvement. The essence and role of payables and receivables in the financial activity of the enterprise is revealed. The main types of debts and their impact on the liquidity and financial stability of the enterprise are described. Traditional methods of assessing payables and receivables, including coefficient and comparative methods, are analyzed. Disadvantages and limitations of the existing approaches were identified, in particular, insufficient flexibility and limited ability to adapt to the specific conditions of the enterprise. New approaches to assessment are proposed, including the use of modern information technologies and automated management systems. The need to integrate risk analysis and cash flow forecasting into the debt assessment process is substantiated. Recommendations for the implementation of new methods of assessing payables and receivables have been developed. The advantages of using integrated approaches and their impact on increasing the financial stability of the enterprise are described. The main results of the research are summarized and the directions of further scientific developments in the field of financial management are determined. The article provides a comprehensive analysis of existing approaches to the assessment of payables and receivables, identifies their main shortcomings, and suggests ways to eliminate them. The developed recommendations will contribute to improving the management of financial resources of enterprises, increasing their liquidity and financial stability. Further research should be aimed at the practical implementation of the proposed approaches and their adaptation to various branches of the economy.
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Степаненко, О.І. "Економічна природа дебіторської та кредиторської заборгованостей, їх місце в бізнес-процесах підприємства". Сталий розвиток економіки, № 1(52) (7 червня 2025): 224–32. https://doi.org/10.32782/2308-1988/2025-52-31.
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The components of the enterprise's economic assets and the sources of their formation are, respectively, receivables and payables. They play a significant role in the accounting and management system, especially in the business processes of sales and acquisitions. Receivables lead to a temporary withdrawal of working capital and a decrease in the level of its turnover, and payables - temporary attraction of capital. Such an impact is noticeable in conditions of economic crisis, during which the financial discipline of enterprises deteriorates, significant delays in debt repayment arise. The article analyzes dissertations in which the categories "receivables", "payables" were studied. In order to highlight the features that reveal the economic nature of receivables and payables, their interpretation and approaches to understanding their essence are studied. It is substantiated that it is advisable to consider their economic nature in three directions: economic, accounting, legal. The views of scientists on the construction of a classification of debts, their grouping for accounting and management needs are analyzed. Accounting events that arise in counterparties when fulfilling contractual obligations during the purchase and sale of assets are highlighted: for the seller - in the process of sale; for the buyer - in the process of acquisition. The place of receivables in the business process of selling finished products (goods, works, services) is substantiated, the aspects in which its role is manifested are highlighted: 1) financing of working capital; 2) impact on cash flows; 3) formation of credit policy; 4) control over the quality of debt; 5) risks of non-repayment; 6) improvement of relations with customers. It is proved that in the business process of acquisition, a key role is assigned to payables, which allows the enterprise to reduce the attraction of external financing and manage cash flows more flexibly. The stages of the strategy for managing receivables and payables are highlighted. It is substantiated that balanced management will make it possible to optimize the amount of debts, reduce the risks of non-repayment of debts, and improve the quality of control procedures for the status of settlements.
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Ровенский, Yu Rovenskiy, Наточеева, N. Natocheeva, Белянчикова, and T. Belyanchikova. "Managing Economic Calculations of a Company." Economics of the Firm 4, no. 4 (2015): 23–27. http://dx.doi.org/10.12737/18385.
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The paper considers the issues of how to manage the accounts receivable and
 accounts payable based on the findings of analysis of thereof. The authors
 propose to sort out definite stages in debt management and suggest ways to
 calculate the working capital amount to be allocated to accounts receivable; to
 assess the company financial performance, subject to the provision of onemonth
 and three-month discounts to debtors, and to evaluate the effect of the
 increase in accounts receivable in the upcoming period. All the above help to
 enhance efficiency of the company’s credit policy and of the accounts payables
 management and also allow to reduce financial losses related to attracting
 additional sources of capital.
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Pugach, A. A., and T. V. Bubnovskaya. "Management of receivables and payables as an element of ensuring the economic security of an enterprise: practical aspects." Vestnik Universiteta 1, no. 12 (2023): 162–70. http://dx.doi.org/10.26425/1816-4277-2022-12-162-170.
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The article is devoted to the problem of the effectiveness of accounts receivable and accounts payable management in an enterprise. The object of the study is the LLC XXX leasing company that specialises in financial leasing of cars, road freight vehicles, specialised equipment and other items. Works on relevant subjects of Russian and foreign authors served as a theoretical basis of the study. The goal of the study is to prepare recommendations aimed at improving settlements with creditors and debtors, avoiding and minimising the number of overdue receivables and payables as well as improving the overall economic security of the enterprise. Based on the analysis and synthesis of the results obtained by the authors in previous studies, a set of recommendations was proposed. Their potential impact on the components of the enterprise’s economic security was assessed, and the results that can be achieved in case accounts receivable and accounts payable are properly managed were presented. The method of combining ABC analysis with accounts receivable aging reports, which gives a full picture of creditors and debtors, was described.
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Ombui, Justin, Damaris Monari, Charles Kamau, Cromwell Kibiti, and Grieveesvon Muhoro. "Working Capital Management and its Effect on Financial Performance of Public Universities in Coastal Region Kenya." International Journal of Religion 5, no. 9 (2024): 977–94. http://dx.doi.org/10.61707/8dpc1806.
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Kenya's public universities face challenges such as budget cuts and declining enrollments. This puts pressure on institutions and highlights the need for strong financial management systems. The main goal of this research was to assess the influence of working capital management (WCM) on financial performance (FP) of coastal public universities in Kenya. The effects of cash, accounts receivable, accounts payable, inventories and the size of the university on financial performance were examined. The study utilized primary and secondary data analysis involving financial controllers and managers for primary data collection. Secondary data from 2013 to 2019 was also collected from financial reports of selected universities. The findings of this study demonstrated the beneficial effect of working capital management on financial performance. The study highlights the importance of implementing tailored financial management strategies for each institution based on their specific needs and size. Recommendations include focusing on cash management, improving receivables and payables management, optimizing inventory strategies, and considering university size when designing working capital approaches.
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Ionin, Yevhen, and Anastasia Kalarash. "Analysis of the impact of accounts payable on ensuring business continuity." Economic Analysis, no. 32(3) (2022): 273–81. http://dx.doi.org/10.35774/econa2022.03.273.
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Introduction. In the conditions of full-scale russian aggression, the threat of a financial crisis in Ukraine is growing, the risk of the functioning of business entities is increasing, therefore it is extremely important to strengthen the economic potential of our state. Due to the martial law and the introduction of a curfew, the logistics between counterparties has significantly worsened, which reduces the turnover of sales and purchases and negatively affects all indicators of the enterprise. The uncontrolled growth of accounts payable for goods, works, and services in the conditions of the existing problem of non-payments may become even larger. Therefore, one of the important tasks in the conditions of their occurrence is the systematic analysis of the company's payables, as a factor of ensuring business continuity, a basic assumption in the concept of accounting. Purpose. The purpose of the work is to study the influence of accounts payable on ensuring the continuity of business activities on the basis of a system of analytical indicators, cluster analysis, which is extremely important in the conditions of martial law. Method (methodology). To achieve the goal, general scientific, economic and mathematical methods and approaches, analytical procedures and tools were used, in particular, horizontal and vertical analysis, cluster analysis, formalization and generalization of the influence of accounts payable on ensuring continuous activity in the conditions of martial law. The results. The impact of commercial payables on ensuring business continuity under martial law conditions has been studied. The introduction into the theory and practice of accounting analysis as a component of economic analysis of economic activity (business) based on the additional involvement of accounting information, which is not directly reflected in financial statements, is argued. It is proposed to use a system of indicators, procedures for analytical justification of management decisions, focused on the implementation of business continuity.
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Souhoka, Bagas Adiansyah, Rama Afan Fadillah, Reza Meldiansah, Muhammad Fathan, Faithly Jabez Jefune Runtuwene, and Fauziyah Fauziyah. "Analisis Sistem Akuntansi Utang Piutang Studi Kasus Pada PT. Rapitama Intertech Buana." JAIS - Journal of Accounting Information System 4, no. 1 (2024): 16–22. https://doi.org/10.31294/jais.v5i1.3161.
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Rapitama Intertech Buana is a company operating in the interior and exterior contractor sector located in Cibubur, Indonesia. The company's primary focus is creating unique and functional interior design solutions in collaboration with clients. An effective and efficient accounting system for managing finances is very important for companies. This research aims to provide an overview of how companies manage their debts and liabilities, and whether the system implemented helps achieve long-term financial goals. The research found that companies still use manual transaction recording systems on payables and accounts payable. Therefore, the research team developed an application prototype for recording transactions and debt management, as well as increasing efficiency and data organization.
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Маккаева, Р. С. А., and М. М. Килабов. "Analysis and the president on the state and the answer." Экономика и предпринимательство, no. 3(116) (May 15, 2020): 830–36. http://dx.doi.org/10.34925/eip.2020.116.3.172.
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Данная статья посвящена анализу внутрихозяйственному контролю над состоянием дебиторской и кредиторской задолженностью. Значительное место в оборотных средствах фирмы занимает оборотный капитал, на время отвлеченный из оборота и вложенный в текущие активы, представленный в виде дебиторской и кредиторской задолженности. За счет оборотных средств функционирует весь производственный процесс, ведь их характерной особенностью является скорость оборота. Именно поэтому так важно уделять внимание управлению и контролю над состоянием и использованием оборотных активов, в числе которых дебиторская и кредиторская задолженность предприятия. Ведь финансовая стабильность фирмы напрямую зависит от наличия и состояния оборотных средств. Также наличие достоверной информации о состоянии величины дебиторской и кредиторской задолженности необходимо руководству для принятия скорых решений по управлению оборотными средствами фирмы. This article is devoted to the analysis of internal economic control over the state of receivables and payables. A significant place in the working capital of the firm takes working capital, for a time diverted from circulation and invested in current assets, represented in the form of receivables and payables. Due to working capital functions the entire production process, because their characteristic feature is the speed of turnover. That is why it is so important to pay attention to the management and control of the wealth and use of working assets, including the receivables and payables of the company. After all, the financial stability of the company directly depends on the availability and state of working capital. Also, the availability of reliable information on the state of receivables and payables is necessary for management to make quick decisions on the management of working capital of the firm.
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Береговых, Т. В., and С. О. Леонтьев. "Improvement of the system of management of accounts receivable and payable of enterprises in the energy industry." Экономика и предпринимательство, no. 5(130) (June 25, 2021): 1053–56. http://dx.doi.org/10.34925/eip.2021.130.5.206.
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В статье обоснована необходимость ответственного подхода к управлению её дебиторской и кредиторской задолженностью, выявлены причины возникновения дебиторской задолженности у организаций энергетической отрасли. По результатам проведенного анализа предложена система мероприятий, позволяющих оптимизировать размер дебиторской и кредиторской задолженности с целью повышения финансовой устойчивости на примере конкретной организации. The article substantiates the need for a responsible approach to the management of its receivables and payables, and identifies the causes of the occurrence of receivables in the energy industry organizations. Based on the results of the analysis, a system of measures is proposed to optimize the amount of receivables and payables in order to increase financial stability on the example of a specific organization.
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Ratushna, Olha, Olena Matros, and Mykola Cherniak. "APPLICATION OF ECONOMETRIC MODELS IN THE ECONOMIC AND STATISTICAL ANALYSIS OF SETTLEMENTS WITH COUNTERPARTIES." Economic scope, no. 197 (February 11, 2025): 217–25. https://doi.org/10.30838/ep.197.217-225.
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An entity's settlement relationships are an important component of its operations. Therefore, the management of receivables and payables requires constant monitoring and attention from management. An important basis for making management decisions is an objective assessment of the state of settlements, which can be implemented through economic and statistical analysis. According to the results of the study, it was found that the most common method is the coefficient analysis, while factor analysis and analysis of the relationship and impact of settlements with counterparties on the financial condition and business performance of the enterprise are less common. The purpose of the study is to investigate the impact of analytical indicators of the status of accounts receivable and accounts payable on the current liquidity of enterprise on the basis of building an econometric model of the relationship. To assess the status of settlements with counterparties, the article calculates and analyses the turnover ratios of receivables and payables debts, and the liquidity of the researched business entity is determined. To objectively determine the impact and interrelation of the state of the enterprise's payment discipline, a multiple regression model of dependence of the current liquidity of the enterprise and the following factors was built: the ratio of accounts receivable and accounts payable and the share of other operating income in the total income of the enterprise. Further calculations have shown the existence of a close relationship between the selected indicators, and the Student's F-test has shown the adequacy of the built model. The use of two areas of analysis of the state of settlements with counterparties: financial analysis of ratios and correlation and regression analysis allowed to form an objective assessment of it. It has been found that the use of only coefficient analysis does not allow a detailed assessment of the situation at the enterprise and its characterisation, identification of weaknesses in management, and prevention of negative consequences. Therefore, the addition of correlation and regression analysis allowed to assess the effectiveness of management of the status of settlements over a long period of time, determine the nature of the relationships and predict the future value of the studied indicators.
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Štangová, Nora, and Agneša Víghová. "Company liquidity as a reflection of receivables and payables management." Entrepreneurship and Sustainability Issues 9, no. 2 (2021): 238–54. http://dx.doi.org/10.9770/jesi.2021.9.2(16).
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Supatmi Supatmi, Sutrisno Sutrisno, Erwin Saraswati, and Bambang Purnomosidhi. "Abnormal Related Party Transactions, Political Connection, and Firm Value: Evidence from Indonesian Firms." International Journal of Business and Society 22, no. 1 (2021): 461–78. http://dx.doi.org/10.33736/ijbs.3189.2021.
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This study aims to examine the effect of abnormal related party transactions (RPTs) on firm value and to investigate political connections as a moderator of the causal relationship. Our sample is 450 Indonesian firms listed at the Indonesia Stock Exchange during the period of 2014–2017 with a total of 1,724 firm-year observations. Based on the panel data regression test, our results demonstrate that abnormal RPTs, especially account receivables-related RPTs and account payables-related RPTs, decrease firm value. Further, the results empirically show that political connections negatively affect firm value. Political connections strengthen the effects of abnormal non-account receivable RPT assets and abnormal non-account payable RPT liabilities on firm value. Our findings imply that agency theory explains the impacts of political connections of Indonesian firms better than resource dependence theory.
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Yegon, Charles Kiprotich, Willy Muturi, and Oluoch Oluoch. "Effect of Working Capital Management Decisions on Financial Performance." International Journal of Finance & Banking Studies (2147-4486) 10, no. 4 (2021): 127–40. http://dx.doi.org/10.20525/ijfbs.v10i4.1432.
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Collapse of companies in Kenya has been on the rise in the recent past. Far reaching endeavors to resuscitate these liquidating and ailing firms have generally been attributed on their corporate financial management decisions. Multinationals and KTDA managed tea firms in Kenya have been performing poorly in the recent past where audited financial statements and reports revealed a warning signal on its financial performance. Specific objectives of the study were to determine the effect of the accounts receivables period, accounts payables period, inventory conversion period, cash conversion cycle, financing policy, investing policy and moderating effect of ownership structure on financial performance. The study illustrated that accounts receivables collection period is negatively related to return on assets (? = -0.1299, p=0.0160), accounts payables payment period is negatively related to return on assets (? = -0.0843, p = 0.0070), inventory conversion period is negatively related to return on assets (?= -0.0623, p=0.0180), cash conversion cycle is negatively related to return on assets (? = -0.1107, p = 0.0030), financing policy is positively related to return on assets (? = 0.1589, p = 0.0000), investing policy is positively related to return on assets (? = 0.0291, p = 0.0000).
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Mittal, Sangeeta, and Monika. "Accounts Receivable: Payable Impact on Each Other with Special Reference to Financial Performance—A Study of Small Cap Companies." SEDME (Small Enterprises Development, Management & Extension Journal): A worldwide window on MSME Studies 47, no. 4 (2020): 362–73. http://dx.doi.org/10.1177/09708464211055532.
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Trade credit is important as a funding source for companies having a liquidity shortage. Trade credit comprises of both accounts receivable and payable. The financial literature has discussed the impact of accounts receivable or payable on a company’s financial performance. However, there is a lack of studies on the effects of accounts receivable and payable on each other and further its effect on the financial performance of small-cap companies. Financial performance is determined using the profitability and value of the company. The researchers examined the financial performance implications of offering and receiving trade credit for a sample of 193 BSE small-cap manufacturing companies in India during the period 2011–2019. Granger causality test, Levin, Lin and Chu Unit root test, correlation and regression have been used for data analysis. The finding suggested that accounts receivable influenced the use of accounts payable. The aftermath of accounts payables is that it negatively and significantly affected the profitability and had an insignificant relationship with the value of the company. The result implies that effective management of accounts receivable can influence the application of accounts payable that improves a company’s profits and value. The current study is useful for SMEs’ managers in determining the financial performance and capital structure.
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Panda, Ajaya Kumar, Swagatika Nanda, and Pradiptarathi Panda. "Working Capital Management, Macroeconomic Impacts, and Firm Profitability: Evidence from Indian SMEs." Business Perspectives and Research 9, no. 1 (2020): 144–58. http://dx.doi.org/10.1177/2278533720923513.
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The present study investigates the relationship between working capital management and SME profitability. It also analyzes the impact of macroeconomic impulses on firm profitability through efficient management of working capital in the case of Indian small and medium scale enterprises over the time period spanning from 2010 to 2017 using Feasible Generalized Least Square (FGLS) regression models. The study concludes the negative relationship of account receivables together with a positive relationship of inventories and account payables with SME profitability. It implies the firm managers can maximize SME’s profitability by converting the credit sales to cash as early as possible, by increasing the days of accounts payable and following a conservative inventory management strategy. Changes in economic growth and commercial bank advances to small scale industries are the key macroeconomic determinants that are impacting SME profitability. The results from this paper may guide the firm managers to shape their working capital management strategies to maximize profitability. Policymakers may find the study interesting to identify the macroeconomic parameters that significantly influence Indian SMEs.
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Otrubiannikova, Polina, D'yankai Van, Anna Vladimirovna Ilina, and Natalya Gennadevna Viktorova. "Accounts receivable from the chemical enterprises: factor analysis." Финансы и управление, no. 3 (March 2021): 35–46. http://dx.doi.org/10.25136/2409-7802.2021.3.34967.
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This research analyzes the impact of certain factors upon the accounts receivable from chemical enterprises. The subject of this article is the accounts receivable, while the object is the Russian chemical enterprises. The goal lies in building a regression model of the dependence of accounts receivable from chemical enterprises on the explanatory factors selected in the course of analysis. The internal factors include sales revenue, net profit, accounts payable, management expenses, return on total assets, etc. The external factors include gross domestic product, monetary supply, and Networked Readiness Index. The author creates an econometric model based on the financial report data for 44 enterprises, and statistical information for the period from 2015 to 2019. The result of modeling reveals a considerable impact of such indicators as monetary resources, accounts payable, and management expenses upon the size of accounts receivable. The conclusion is made on the expansion of digital components of management expenses in the context of the goal of research. The novelty of this article is substantiated from the perspective of application of the acquired results for forecasting the level of accounts receivable and more effective management of the payables policy of the enterprise. It is noted that the internal financial and economic indicators have most impact upon the size of accounts receivable from chemical enterprises.
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Omolara Patricia Olaiya, Olayinka Rasheed Aliu, Temitayo Oluwadamilola Adesoga, Olajumoke Oluwagbemisola Ajayi, Fehintola Moyosore Sotomi, and Oluwabusola Dorcas Olagunju. "Evaluating the influence of working capital management on corporate performance." World Journal of Advanced Research and Reviews 22, no. 3 (2024): 2030–37. http://dx.doi.org/10.30574/wjarr.2024.22.3.1974.
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Effective working capital management involves strategically managing short-term assets and liabilities to maintain financial stability. This includes managing cash, inventory, accounts receivable, and accounts payable. Optimizing cash conversion, timely payment collection, avoiding excess stock, and managing accounts payable ensure liquidity, minimize financing costs, and improve profitability. Studying the impact of working capital management on the financial performance of consumer goods firms is crucial, as it provides insights into how these practices can enhance profitability and support sustainable growth in a competitive sector. Understanding these dynamics helps firms refine their strategies to achieve better financial health and operational efficiency. This study investigates the impact of working capital management on the financial performance of listed consumer goods firms in Nigeria, highlighting the significance of optimizing cash flow and balancing current assets and liabilities. By focusing on the cash conversion cycle, accounts receivable turnover, and inventory turnover, the research evaluates their effects on return on assets (ROA) using ordinary least square regression (OLS) analysis. The findings aim to provide insights into how strategic management of working capital components can enhance profitability and contribute to sustainable business growth. By analyzing financial data from listed companies, the study offers empirical evidence that effective working capital management through maintaining optimal levels of receivables, inventory, and payables supports smoother operations, reduces financing costs, and increases ROA. This research underscores the strategic importance of working capital management in achieving financial stability and operational efficiency, with implications for both practitioners and academics in the Nigerian context.
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Omolara, Patricia Olaiya, Rasheed Aliu Olayinka, Oluwadamilola Adesoga Temitayo, Oluwagbemisola Ajayi Olajumoke, Moyosore Sotomi Fehintola, and Dorcas Olagunju Oluwabusola. "Evaluating the influence of working capital management on corporate performance." World Journal of Advanced Research and Reviews 22, no. 3 (2024): 2030–37. https://doi.org/10.5281/zenodo.14769116.
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Effective working capital management involves strategically managing short-term assets and liabilities to maintain financial stability. This includes managing cash, inventory, accounts receivable, and accounts payable. Optimizing cash conversion, timely payment collection, avoiding excess stock, and managing accounts payable ensure liquidity, minimize financing costs, and improve profitability. Studying the impact of working capital management on the financial performance of consumer goods firms is crucial, as it provides insights into how these practices can enhance profitability and support sustainable growth in a competitive sector. Understanding these dynamics helps firms refine their strategies to achieve better financial health and operational efficiency. This study investigates the impact of working capital management on the financial performance of listed consumer goods firms in Nigeria, highlighting the significance of optimizing cash flow and balancing current assets and liabilities. By focusing on the cash conversion cycle, accounts receivable turnover, and inventory turnover, the research evaluates their effects on return on assets (ROA) using ordinary least square regression (OLS) analysis. The findings aim to provide insights into how strategic management of working capital components can enhance profitability and contribute to sustainable business growth. By analyzing financial data from listed companies, the study offers empirical evidence that effective working capital management through maintaining optimal levels of receivables, inventory, and payables supports smoother operations, reduces financing costs, and increases ROA. This research underscores the strategic importance of working capital management in achieving financial stability and operational efficiency, with implications for both practitioners and academics in the Nigerian context.
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Tomchuk, Olena. "ANALYTICAL PROVISION OF COMPUTATIONAL OPERATIONS AND DIRECTIONS FOR THEIR IMPROVEMENT." Green, Blue and Digital Economy Journal 4, no. 1 (2023): 82–98. http://dx.doi.org/10.30525/2661-5169/2023-1-8.
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The purpose of the article is the method of analysis of settlements with debtors and creditors and determination of directions for their improvement. Methodology. In the process of solving the tasks of scientific research, general and special methods of research were applied: descriptive-analytical method, systematic approach, method of analysis and synthesis, method of systematization, method of comparison, method of scientific generalization. Results. It has been proved that the anti-crisis management system should provide a proper approach to the enterprise's debts, for their effective management, ensure the optimal ratio of receivables and payables, prevent their overdue occurrence, systematically monitor payments. The current state of enterprise settlements is characterized by an unsatisfactory level of payment discipline of subjects of economic activity and requires strengthening of their control both by state authorities in the sphere of economic policy implementation and by enterprises themselves. It was determined that the main source of information is regulatory acts, accounting data and the main stages of analysis of accounting transactions. The analysis of the company's receivables allows to estimate the possible amount of income that can be received in the form of fines, penalties and fines from the debtors who are in arrears. Characteristics of qualitative changes of liabilities in the structure of the company's liabilities can be obtained using horizontal and vertical analysis of the balance sheet. Horizontal analysis allows to compare indicators of liabilities for different periods. The necessity of analyzing the dynamics of the accounting operations of a business entity is covered. The existence of overdue receivables, especially bad debts, which are classified as doubtful debts, as well as an unjustified increase in receivables in general, adversely affects the financial position of the Company and leads to a shortage of financial resources. Bad debts are eliminated by writing them off against the company's losses as receivables for which the statute of limitations has expired. Special attention should be paid to the date of incurrence of the payable debt, the term of its repayment, the time of delay in the return of the debt, the reasons for its incurrence. Practical implications. It is possible to accelerate the repayment of receivables by getting acquainted with the financial condition of buyers and gaining confidence in their further solvency, timely execution of settlement documents, granting discounts to buyers for shortening the terms of payment of invoices, introducing penalties for late payments, releasing goods to buyers on prepayment terms, etc. In order to effectively manage the liabilities of Trans-Market, LLC, it is necessary to monitor the ratio of receivables and payables, to monitor the status of payments for overdue receivables, to timely identify unacceptable types of liabilities, which primarily include overdue debts to suppliers, payments to the budget, etc. Value/originality. A comprehensive analysis of receivables and payables in the enterprise management system is optimal. It makes it possible to assess the real state of the company's receivables and payables, to identify "bottlenecks" in the management of this type of debt, and to develop measures aimed at reducing or recovering overdue or doubtful receivables.
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Nwachukwu, B. C., and O. Inyiama. "WORKING CAPITAL MANAGEMENT AND FINANCIAL PERFORMANCE OF MANUFACTURING FIRM IN SOUTHEAST NIGERIA." International Journal of Advanced Finance and Accounting 4, no. 2 (2023): 49–62. https://doi.org/10.5281/zenodo.8072972.
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<em>The study examined the effect of working capital management and financial performance of manufacturing Firm in Southeast Nigeria. The study adopts short term investments and account payables as the independent variable while turnover serve as dependent variable. The study used an ex-post facto research approach as its methodology. Secondary source of data was adopted for the study. The data was obtained from audited annual financial account and reporting of the manufacturing firm listed in the Nigeria Stock Exchange LTD. The data were analysed using Pearson's correlation coefficient. Short-term investment has a weak (28%) positive relationship with financial performance (proxied by turnover). While Account Payables have a moderately strong (58%) positive relationship with financial performance (proxied by turnover) of quoted industrial goods firms in Nigeria. We concluded that working capital management has significant positive effect on the financial performance of manufacturing firm in Southeast Nigeria. We recommended that, the manufacturing firm in sought east Nigeria should endeavour to effectively manage their working capital very well since it has significant positive effect on the financial performance of the firm.</em>
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Olubukola Otekunrin, Adegbola, Tony Ikechukwu Nwanji, Gabriel Damilola Fagboro, Johnson Kolawole Olowookere, and Oladipo Adenike. "Does working capital management impact an enterprise’s profitability? Evidence from selected Nigerian firms." Problems and Perspectives in Management 19, no. 1 (2021): 477–86. http://dx.doi.org/10.21511/ppm.19(1).2021.40.
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This study examined the impact of working capital management on the profitability of selected quoted agricultural and agro-allied companies (from 2012 to 2016) in Nigeria. Secondary data were extracted from eighteen quoted agricultural and agro-allied companies in Nigeria, four of which are agricultural companies out of the twenty-three in Nigeria. Descriptive research design and regression analysis were used. Working capital management was measured using the trade receivables collection period, trade payables, payment period, inventory turnover period, and cash conversion cycle, while profit before interest and tax measured profitability. This study found that working capital management and profitability are related to the agriculture and agro-allied sector in Nigeria. The result shows the trade receivables collection period and profitability are negatively related. The result also shows the trade payables payment period and profitability are positively related. The result shows that the inventory turnover period and profitability are related, the cash conversion cycle and profitability are positively related. The conclusion is that working capital management and profitability are related. If the management of firms takes efficient and effective decisions in managing the company’s working capital, all things being equal, the maximization of the firm’s profitability, value, and shareholders’ wealth can be guaranteed. Consequently, agency costs asserted by agency theory would be eliminated automatically. AcknowledgmentAll researchers and non-researchers that contributed to this paper are highly appreciated.
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Tweresh, Abdullah. "Components of Working Capital Management and Its Impact on Profitability: An Applied Study on Basic Materials Companies Listed in the Saudi Stock Market." Business Series 3, no. 3 (2024): 337–63. http://dx.doi.org/10.59759/business.v3i3.682.
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The study aimed at investigating the impact of working capital management components (Period Collection Average, Period Conversion Inventory, Period Payables Average and Cycle Conversion Cash) on the profitability of basic materials companies listed on the Saudi Exchange market measured by return on assets for the period (2013-2022). Using a sample of (24) companies by using the cross-sectional data model (panel data), specifically the fixed effects model, the study reached the following results: there is an inverse effect for the variable of period collection average, period conversion inventory, period payables average and cycle conversion cash on the profitability of basic materials companies. The study represents an addition to the literature in terms of knowledge of the role of working capital management in achieving corporate profitability. The study recommends that the management of basic materials companies should pay attention to working capital management by reducing the period of keeping it in inventory, reducing the period of collection of accounts receivable and increasing ayables period for the positive impact it has on the profitability of companies.
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., Supriyadi. "Kinerja Supply Chain Management." STAR 11, no. 2 (2022): 44. http://dx.doi.org/10.55916/jsar.v11i2.54.
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Kebutuhan untuk mengukur kinerja manajemen rantai pasokan dengan ukuran yang lebih luas dan berdimensi jangka panjang senakin dirasakan urgen. Saat ini, ukuran kinerja manajemen rantai pasokan banyak dikaitkan dengan aspek teknikal saja. Akibatnya, pengukuran kinerja rantai pasokan bersifat jangka pendek dan hanya berguna untuk penilaian operasional perusahaan. Artikel ini mencoba untuk membedah ukuran-ukuran kinerja manajemen supply chain berdasarkan perspektif keuangan. Basis kinerja supply chain menurut perspektif keuangan adalah pada upaya peningkatan Cash to cash cycle. Untuk mendapatkan cash to cash cycle yang optimal, beberapa hal dapat dilakukan seperti menambah modal kerja, mengurangi days sales outstanding, mengurangi days of inventory, dan menambah days payables outstanding
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Brown, J. Owen, Bradley E. Lail, Jason E. MacGregor, and Tim Thomasson. "Controls, Payables, and Materiality: A Case of Unknown Collusion." Current Issues in Auditing 14, no. 1 (2019): A10—A30. http://dx.doi.org/10.2308/ciia-52639.
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SUMMARY This case is inspired by actual experiences within the accounting and accounts payable departments of a large energy company, formerly part of the S&P 500. The primary objective of the case is to provide a real-world scenario depicting the challenges that companies face in designing and implementing controls over financial reporting, as well as the challenges that external auditors face when evaluating audit findings. In completing the case, you will assume the role of a staff auditor on the audit engagement team for Herringbone Affiliates. The case includes discussion questions that have you consider the perspective of both company management and the audit team.
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Ruslan, Zuhri, and Anggoro Budi Nugroho. "Collectibility Improvement In PT. Kaltim Prima Coal Receivables Management: A Framework Roadmap Proposal." Jurnal Sosial Sains 2, no. 1 (2022): 149–58. http://dx.doi.org/10.36418/sosains.v2i1.320.
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Background : The Importance of efficient working capital management is indisputable given that a firm’s viability relies on the financial manager’s ability to effectively manage receivables, inventory, and payables. One of widely used measurement to calculate the effectiveness of working capital management is Cash Conversion Cycle. Purpose : Traditional Cash Conversion Cycle is calculated using items from Financial Statement. However, it is proofed to be overstated compare to the actual calculation. Based on a comparison with Cash Conversion Cycle of another company listed on Indonesian Stock Exchange, Cash Conversion Cycle of PT Kaltim Prima Coal seems to be superior with lower days it needs to convert inventory into cash and longer time to pay its payables. Method: This research uses a quantitative approach method. Results : The research found that based on the regression method, days of late payment and sales amounts of late payment have significant relationship with Profit. Days of late payment and sales amounts of late payment have significant relationship with ROA. And, Days of late payment and sales amounts of late payment also have significant relationship with NPM. Conclusion : Variables of tourist attraction and price simultaneously influence the decision to visit the Blue Kersik beach, Marangkayu.