Secrets of effective work with accounts receivable

What makes a company provide trade loans to its counterparty partners? Competition is forcing many companies to increasingly offer deferred payment sales to their customers. And if the purpose of deferring payment for the supplied goods or services is to increase sales volumes, then the other side of this “coin” is an increase in the volume of doubtful debts. Therefore, it is necessary to realistically assess all the advantages and losses, take into account the positions of competitors and develop the most flexible policy in this matter.

What is the debtor's repayment period?

The receivables maturity period shows (in some sources and textbooks on financial analysis and accounting it is defined as the average period for receiving payment) the rate at which the organization's receivables are paid by its clients . That is, in other words, we can say that this is the period after which the company will receive money for the sale of manufactured goods or services from its customers.

Why is its calculation needed?

What is the need to calculate this indicator? First of all, in order to control the amounts of receivables, it is necessary to develop a system for analyzing and managing this economic indicator.

It is also a direct indicator of the effectiveness of relations with counterparties (buyer enterprises). Based on the results obtained (after calculating all coefficients), it is possible to give a complete assessment of the client’s solvency.

The obtained values ​​can be compared with competitors in order to analyze the activities of the enterprise and identify its weaknesses, which need to be paid special attention to.

The duration of repayment of accounts receivable for the year has its own standard values ​​depending on the industry in which the selling company operates:

It is first necessary to compare standard values ​​with previous values ​​of a given enterprise coefficient. And, based on the analysis obtained, develop and implement a financial policy, or amend the current financial strategy.

Regularly calculating the average time to receive payment is one way to increase profitability. This is due to the fact that this indicator reflects the dynamics of remote sensing. And the most important task in the management policy of remote control is to increase turnover and reduce the length of time it takes to receive funds from debtors for products.

Reference. If the actual deadline for receiving payment exceeds the standard value, this may negatively affect the liquidity and profitability of the enterprise.

Working with accounts receivable

Working with accounts receivable

Work with overdue receivables begins from the moment of first contact with the client, and even a little earlier...

Deprive the client of the opportunity to treat you not seriously, to underestimate you.

The only people who don't get paid are those who allow it to be done!

Just by giving away the product, you have not yet received a client. You will receive it only when he pays for this very product!

Under what circumstances does a client always pay you on time?:

1. You are on good, friendly terms with him.
2. You were recommended to him by his authoritative partner.
3. You are a very valuable supplier to him.
4. You give what others don't.
5. You master the mechanisms to influence the sales process.
6. From the very beginning you introduced the rules of the game: “money in the morning, chairs in the evening.”
7. You know how to ask in such a way that it is difficult for you to refuse.

Reasons that lead to an increase in accounts receivable:

• Sales representatives are heavily focused on getting the product into the market. In their negotiations with the client, the topic of payment is crumpled, or deliberately unfavorable delivery conditions are offered in order to retain the client.
• Sales representatives do not control settlements with clients. Here there is a problem in the organization of the sales department.
• Accounts receivable reports are missing. In other words, there are no weekly accounts receivable collection targets.
• Sales representatives don't remind customers about money.
• Clients were taught not to pay. Probably the most difficult option. This happens if the sales manager is too soft and does not want to enter into conflict with clients.
• Lack of logic for concluding contracts and chaotic search for clients. If there are too many customers with “special conditions” for delivery and payment, then there may often be a shortage of working capital.
• Sales reps don't know how to negotiate money.

The most important thing in working with a customer is to develop the reflex in the customer: “Don’t joke with me, give me the money on time!” I come on a certain day and at a certain time, the money is there and waiting for me! First the money, then the order!” Develop a reaction of uncertainty, fear, anxiety in the customer when he hears the name of the sales representative or the organization for which you work. ATTENTION! These feelings should only arise when he is behind on payments!

In order to accustom the customer to return money on time, take care of some factors:

1. Show that the product is on sale - sales from the shelf
2. Don't overload the customer - place the right order
3. Be clear about your working conditions
4. Be clear about your refund deadlines
5. Specify the actions and responsibilities of each party
6. Draw a money back scheme
7. Find out why it suits the customer
8. Find out in what cases there will be no money
9. Find out what to do if you haven’t prepared the money
10. When these conditions are met, insistently demand money. Be a strong person and be persistent.

Scheme for shipment of goods to a retail outlet to avoid overdue accounts receivable:

Overcome the fear of losing a client! NEVER deliver a new order until the client has paid you for the old delivery! Block new deliveries!

Remember that customers pay first to those who persistently demand money!

If you are not repaid within 1-2 months, it means you are being manipulated. If your debt is not repaid for more than 0.5 years, then you are constantly being manipulated!

When returning a long-distance debt, you must:

1. Insist on a full refund of the entire amount
2. Do not agree to settlement if the customer does not give 100% agreement to return the entire amount in full on the agreed day
3. Cut off the customer’s manipulation “I won’t work with you”
4. Cut off the customer’s manipulations “Yesterday the tax office came and took all the money,” persistently negotiate for a full refund of the entire amount on a specific day and at a specific time
5. Show integrity in creating an agreement directly in ongoing negotiations
6. Make it clear to the customer that you are determined to collect the debt. After a clear agreement, ask a control question: “What should I do if I don’t receive the money?”
7. Tell the customer that you are not threatening, you just want to take your money

How do you know if you have built a cash back system in your area?

Overdue (more than 14-21 days and more than 7-14 days for perishable products) accounts receivable account for less than 10% of the total debt in your area.

“Old” debts (more than 40-60 days) make up no more than 1% of the total amount of receivables in your area.

It has been proven and tested in practice that building a sales system begins with teaching your customers to return money on time.

Psychology of working with debtors:

• It is important to understand that the very scheme of working with accounts receivable is quite simple. But its effectiveness depends on some psychological techniques that need to be practiced during training. Here are some of them:
• It is better to call in the first half of the day (before 12 o'clock).
• All calls should be grouped into short, 45-minute sessions.
• It is better to call “difficult clients” while standing or moving.
• You need to perfectly understand the client’s psychotype and choose the right intonation.
• You can and should use jokes, but understand with whom and what to say.
• You cannot use persuasion techniques that have not been developed during training.
• It makes sense to learn how to quickly change the negotiation scenario. Use multiple negotiation scenarios.
• Be prepared for refusals and reluctance to accept calls.

CONCLUSIONS: If you are a soft person, if you cannot put pressure on sellers and solve financial issues and problems, then go to work where they simply pay your salary, and you won’t have to deal with other people’s money. Or learn to be more decisive, tough and persistent!

Scheme for working with accounts receivable by phone:

1. We call and offer to pay

We say hello and state the purpose of the call. Purpose of the call: payment for the goods received by the client. We speak calmly, confidently, clearly and do not mince key words. We pause and wait for the client’s response. You definitely need to wait for a response. This is an indicator that the client understands the purpose of the call and is ready to talk.

We remind you of the amount of debt, the fact of delivery, time, volume of the last shipment and clearly state the amount that the client must pay.

For example: “On March 22, 2009, you were delivered goods (volume, quantity, name) in the amount of 19,000 UAH. The amount of your debt as of May 22, 2009 is 12,000 UAH. Your total debt to us is 12,000 UAH. no late fees or interest."

Attention!

We immediately offer to pay 100% of the debt, indicating by what date. You can't make excuses or ask. We listen to the client’s explanations and promises and write them down.

2. Argumentation of the proposal

We agree with the promises, thank the interlocutor for understanding the situation. If the promise suits us, we thank you and move on to the next stage; if it doesn’t suit us, we offer our own payment scheme. At this stage, it is necessary to present arguments that are clear to both parties for making payments.

For example: “You and I have been working in trade for several years now. Who, if not you, knows how important it is to adhere to payment schedules with your key suppliers.”

3. “Pressing up” the solution

Please indicate the date and amount of the first payment according to your proposed scheme. If the client refuses to pay, explain to him the consequences that threaten if he refuses his obligations.

For example: “From the beginning of 06.2009, in accordance with the agreement, a penalty in the amount of 0.5% of the debt amount will be charged on the amount of late payment for each day of late payment. This will cost you 300 UAH. per week overpayment on debt. I would really not like to take extreme measures in our cooperation, but this will force us to turn to the clause in the agreement on resolving disputes through the courts.”

4. Solutions options

On the subject: MTS periodic services monthly fee what is it

After the “power forecasts”, you need to provide your client with solution options.

For example, continue the conversation like this: “A proposal that, in my opinion, can satisfy both parties ...” - then your proposal. This could be payment of 50% tomorrow, and 50% in equal shares over the next week.

Important! Record the dates and amounts of payments and responsible persons. Take the accountant's phone number and call him today to find out whether there was an order for payment.

5. End the conversation on a positive note.

We say goodbye. Thank you for the substantive conversation. Remind them that you plan to visit your client next week with new product samples, training for salespeople, updating promotional materials... or something else? what you have planned. Soften the tone of your voice and thank him for understanding the situation.

This scheme is effective in 98% of cases.

Correct handling of overdue accounts receivable:

Incorrect behavior at the point of sale when returning overdue accounts receivable:

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Source: https://xn--80ablv6bya.com/index.php/rabota-s-debitorskoj-zadolzhennostyu

How is the duration of repayment of accounts receivable for the year determined?

This concept can be characterized as follows: the period for the company to receive funds from its clients for one calendar year.

To accurately calculate this indicator, several formulas were derived.

The basic formula for the receivables collection period is as follows:

Deadline for receipt of the contract = (360*average annual sum of the contract) / revenue.

The duration of repayment of receivables for the year is also calculated using the formula, but in this case you will also have to calculate the turnover ratio:

Deadline for receipt of assignments = 360 / turnover ratio of assignments.

What does the average loan repayment period show?

The average receivables collection period shows a certain time period during which an organization expects payment for goods or services provided to another company.

How to calculate this coefficient? The average repayment period for receivables is calculated as:

Average period of receivables = (duration of one period * receivables) / net (total sales revenue).

According to this formula, the average repayment period of receivables is calculated in days.

You can interpret the results obtained after calculating the average period for payment of debt in the following way:

• first of all, it is an indicator of the time for payment of debts by debtors;
• if the values ​​obtained are too high, this may indicate that the company's clients cannot maintain a rational credit policy.

Attention! Analysis based on this coefficient is possible only if in the financial statements the sale of goods or services produced on credit and for cash is delimited by time periods.

In addition, overdue debt is written off at the end of the calendar year. This problem can be solved using this indicator.

Working with accounts receivable. Megafon errors

The business process of working with accounts receivable is extremely important for any company. But while some perform it effectively, with a focus on further client return, others make serious mistakes and lose clients.

Debt can arise for various reasons. Accordingly, actions to repay the debt should vary and depend on these reasons.

Attention!

I propose to consider part of the process of working with Megafon’s accounts receivable, sort out the errors and optimize it.

Why did I choose this particular process, this particular company? The reason is simple - recently I had to take part in it, in the role of a subscriber - a debtor. I have to admit, it was an extremely negative experience.

Background

The SIM card was purchased in 2011 for a tablet. Unlimited Internet was provided on a prepaid basis. There was no subscription fee. After some time, I changed the operator and switched to a more favorable tariff. Knowing that there was no monthly fee, I simply stopped using the SIM card.

Story

Recently, representatives of the collection agency Rus Kollektor contacted me and explained that I was a malicious non-payer and owed Megafon an astronomical amount of 411 rubles. I didn’t bother to find out the circumstances, but simply paid off the debt and notified the Russ collector about it.

The story did not end there; I and my relatives regularly received calls demanding payment, as well as threats to put me on the “Not Traveling” blacklist. Each time, I explained that the payment had been made.

However, the interaction scheme between Rus Collector and Megafon is very vague and they clearly explained to me that calls will continue to come until Megafon “updates the database.”

In general, the story is not pleasant. But it's not that.

I have already said that business processes should be customer-oriented. He talked about how to conduct an express analysis of business processes to focus on customers. Now, using the described case, I will show how to carry out such an analysis and optimize the process.

Based on the analysis of the situation, we can say that this part of the process looks like this.

Process of working with accounts receivable. Megaphone

Explanations for the diagram:

• A circle means an event. An event can be detailed and expanded into a subprocess, but this is not necessary in a specific diagram. Please note that the process begins with an event, i.e. something happened and the process starts. In my case, such an event was that the balance became zero.
• Diamond means branching, i.e.
  options for the development of events. If the subscriber has connected services with a subscription fee, then the process develops further; if not, then it actually ends.
• The rectangle represents the operation.
• In the events “Debt limit reached” and “Specified time” the exact values ​​are unknown. But now this is not necessary.
• The operation “Contact a subscriber using a disconnected number” is taken from my experience.
  Those. Operators are trying to contact subscribers, but why this is done using a disconnected number and not an additional number is not clear. When connecting a subscriber, you must ask him for an additional contact telephone number. I indicated mine. In fact, it was through this that the collectors contacted him.
• The end of the process is also an event.
  This is not particularly interesting in this analysis, so the event simply refers to the next process.

Average receivables maturity: definition, purpose and formula

The receivables maturity period (RMD) is the average length of time the seller waits for payment from the buyer after the sale of products.

SPdz can be calculated using the formula:

DP—duration of the analyzed period in days;

DZ - accounts receivable in rubles;

B - revenue (net) from all types of sales.

This indicator is of great importance when assessing the financial position of the company, namely:

• the longer this time period, the higher the risk of non-payment of debt;
• Exceeding the actual repayment period of the debt over the period established in the contract may affect the degree of liquidity of the company.

How the special terms of the contract affect the liquidity of receivables, see the material “Liquidity of receivables (nuances)”.

Using this indicator when analyzing financial statements helps assess the financial stability of the company in the short term.

How are the debt repayment period and the procedure for selecting a counterparty related?

There is no point in applying formulas and calculating the repayment period of receivables if the counterparty is a one-day business or a financially unreliable partner.

In order to protect a company from overdue debts, the choice of a counterparty must be approached with due diligence - for this, tax authorities suggest that companies and individual entrepreneurs apply publicly available criteria approved by order of the Federal Tax Service of Russia dated May 20, 2007 No. MM-3-06 / [email protected] (registration of the counterparty by “mass” address, lack of state registration data in the Unified State Register of Legal Entities, etc.).

How to reduce the risks of payment delays

If a company regularly works with individual counterparties, additional analysis helps reduce the risk of failure to repay debts, as a result of which a decision is made on the advisability of continuing partnerships with this counterparty or the need to adjust the existing terms of contracts in terms of the terms and conditions of repayment of receivables is considered.

To carry out such an analysis, the following groups of indicators will be required for the entire period of work with this buyer:

• calendar (total time of work with a specific counterparty);
• statistical (volume of business transactions with a given client);
• financial (performance indicators of the counterparty according to reporting data);
• calculated (turnover ratios of its debt);
• detailing (timing and volumes of overdue debts);
• forecast (product market conditions);
• others (informal assessment of the client by managers working with him, etc.).

Indicators are assessed on a 100-point scale, and each of them is assigned a weight of significance. As a result of scoring, a consolidated rating of the counterparty is determined. Then one or another decision is made regarding a specific buyer (see table below):

Possible solutions

The contract is concluded only on the terms of 100% prepayment

For what criteria and formulas to apply when analyzing a company’s profitability, see the material “How to conduct a profitability analysis?”

What is the procedure for handling accounts receivable?

Working with accounts receivable allows a company to solve a whole range of problems, from getting rid of unnecessary costs to maintaining financial stability. From our material you will learn about the methods and features of such work.

Debts of debtors: where they are reflected in the balance sheet and why work with them

Debt for goods and services supplied: main stages of working with receivables

How to sell accounts receivable

Offsetting receivables and payables

The nuances of working with accountable receivables

What results from poor handling of counterparties' debts

Results

Debts of debtors: where they are reflected in the balance sheet and why work with them

Debts of debtors are reflected in the balance sheet of creditors in the same section with cash and other current assets. However, the mobility of receivables is significantly lower than money, and it requires additional effort (working with receivables). The result of such work is the timely repayment of debts and the reflection of receivables in the balance sheet in a reliable estimate.

Working with accounts receivable can be represented as a set of procedures that allow you to receive the money due in a timely manner or collect with the least loss. The methods of dealing with debtors' debt depend on the composition and structure of the debt itself.

Typically accounts receivable include:

• debts of counterparties for goods, works, services;
• advances not worked out by contractors and suppliers;
• overpaid taxes and insurance premiums;
• accountable amounts, loans and borrowings not returned by the company's employees;
• other debt (sanctions for violating the terms of business contracts, compensation for losses caused to the company, etc.).

Find out how to influence a negligent debtor from the following materials:

We will explain below how to work with certain types of receivables.

Debt for goods and services supplied: main stages of working with receivables

Work with receivables arising from contractual obligations can be divided into several stages:

• preparatory - checking potential counterparties (their financial position, solvency, reliability, etc.);
• documentary - the stage of preparing a draft agreement and determining its main conditions (the procedure and terms of repayment, sanctions for non-fulfillment, installment plans, discounts, etc.);
• control - monitoring the counterparty’s fulfillment of the deadlines and volumes of debt repayment under the contract;
• operational - a set of procedures that help reduce the risk of the debtor’s debts becoming doubtful and hopeless;
• exacting - the stage of working with the debtor in the courts or using special methods of debt collection (for example, by assigning the right of claim);
• final - timely write-off of bad debts, transfer of debt to doubtful with all the ensuing accounting consequences.

At each stage of working with receivables, special methods and techniques are used. For example, verification of counterparties is carried out using selection criteria, analysis and calculations of financial indicators, taking into account the established practice of working with a specific partner.

How to assess the reliability of a partner, see the material “Checking a counterparty on the tax website (nuances)” .

The company develops these methods independently and describes them in a separate local act (instructions, regulations, methods).

Find out about one of the methods of working with accounts receivable in the next section.

How to sell accounts receivable

A firm may need to sell a counterparty's debt if, for example:

• there is an acute shortage of funds to ensure a normal business cycle in the absence of the possibility of claiming the debt before the expiration of the dates specified in the contract;
• doubt arises about the counterparty’s ability to repay the debt (transition to the stage of bankruptcy, a decrease in its financial solvency due to the industry crisis, etc.).

To sell a debtor's debt, you must:

• notify the debtor about the conclusion of the assignment agreement;
• prepare the necessary documents (primary document, assignment agreement, etc.);
• record the income and expenses of the transaction in accounting;
• take into account the nuances of taxation of the assignment of the right to claim a debt.

For details on how to sell receivables to a simplifier, read the article “Assignment agreement under the simplified tax system: income minus expenses (nuances).”

Offsetting receivables and payables

Offsetting can be considered as one of the methods of working with debtors' debts - it can speed up settlements and simplify settlement procedures with its help in the case where there are mutual debts between the debtor and the creditor.

To carry out mutual offset it is necessary that:

• the claims of the debtor and creditor were homogeneous (comparable);
• the deadline for fulfilling obligations has arrived.

Additional conditions must be taken into account:

• the agreement should not contain a ban on mutual offsets and should not contradict the law;
• The statute of limitations for debts has not expired.

Before registering a settlement, debts are reconciled and their amount is agreed upon.

When issuing a reconciliation report is undesirable, see the message “What are the dangers of reconciliation with a “hopeless” counterparty?”

The law does not regulate the form of the netting document, so counterparties can draw it up, for example, in the form:

• agreement or act of offset;
• agreement on the offset of mutual claims.

How to arrange a netting for a simplifier, see the article “The procedure for netting under the simplified tax system “income””.

The nuances of working with accountable receivables

Accounts receivable may arise if, for example:

• the company does not have a well-functioning system for issuing funds on account (procedures for issuing money to employees have not been defined, deadlines for return and reporting on them have not been established, etc.);
• the employee quit and did not return the accountable amounts, and it was not possible to withhold them during the final settlement;
• the employee is on a long-term business trip and does not have the opportunity to report on time for the money received under the report.

The following measures help to establish timely return of accountable funds and the process of regular reporting of accountable persons:

• approval of the company's regulations on the procedure for issuing money on account;
• issuing an order with a list of persons to whom it is permissible to issue money for business needs;
• assigning a separate accounting employee to monitor the timeliness and completeness of reporting on funds received by employees.

What to include in the responsibilities of an accountant for working with accountable persons, see the material “Responsibilities of an accountant for settlements with accountable persons” .

What results from poor handling of counterparties' debts

The absence of a well-functioning debt management system in a company can negatively affect its:

• financial stability and solvency - the lack of money received from counterparties in a timely manner does not allow the company to pay staff, the budget, purchase materials, that is, carry out its usual activities;
• reputation - the lack of necessary and sufficient cash does not allow the company to timely fulfill its obligations to suppliers and the budget;
• competitive advantages - frozen money that has fallen out of circulation due to overdue debts of counterparties could be used by the company for a variety of purposes (its development, obtaining alternative income, etc.);
• internal potential - the company’s resources diverted to debt collection could be used on new projects and its development;

In addition, insufficient work with debtors, leading to judicial collection of debt, requires additional diversion of money and labor costs (which could be avoided with a well-functioning system of working with debtors).

Results

The company develops its own procedures for handling accounts receivable. Among the main stages of such work are: preliminary verification of potential debtors, well-verified contract terms, a systematic approach to the process of reminding counterparties about debts and their timely collection.

On topic: How to get a loan for a phone

Source: https://nalog-nalog.ru/buhgalterskij_uchet/vedenie_buhgalterskogo_ucheta/kakov_poryadok_raboty_s_debitorskoj_zadolzhennostyu/

How to regulate the repayment terms of debtors

The instability of the counterparty's payment discipline forces firms and individual entrepreneurs to work with their counterparties on prepayment terms. However, by adhering to such payment requirements, you can lose an entire segment of potential buyers.

This circumstance forces sellers to enter into agreements on the terms of trade credit, and control over compliance with repayment deadlines for receivables in this case becomes even more labor-intensive.

Here the problem of managing receivables comes to the fore, the solution of which requires a special set of analytical and calculation procedures:

• first you need to analyze existing receivables using special indicators and ratios (more about them in the next section);
• then it is necessary to organize regular control over the payment discipline of counterparties;
• if necessary, other measures can be applied (for example, analyzing the impact of changes in the company’s policy in commodity lending on its profit, etc.).

The following will help you effectively manage accounts receivable and receive payment within the terms agreed upon in the contract:

• automation of accounting and control of repayment of receivables;
• motivating sales managers by linking the amount of bonuses to the timely (or earlier than expected) receipt of payments from customers;
• introducing the practice of issuing invoices in advance and regularly reminding clients about the approaching payment deadline;
• fixing the start date for work with late payment immediately the next day after the contractual payment deadline (if the money from the buyer is not received on time);
• other measures (coordinating the work of managers on the most significant payments, etc.).

Find out what measures help reduce the risk of non-fulfillment of obligations from the material “Security or guarantee payment under a lease agreement.”

Goals and objectives of accounts receivable management

The main objectives of accounts receivable management are:

• limiting the acceptable level of receivables;
• selection of sales conditions that ensure guaranteed receipt of funds;
• determination of discounts or allowances for various groups of buyers in terms of their compliance with payment discipline;
• acceleration of debt collection;
• reduction of budget debts;
• assessment of possible costs associated with receivables, that is, lost profits from non-use of funds frozen in receivables.

The ability of an asset such as accounts receivable to be converted into cash becomes a key objective of any sales department of each company. The tasks, in turn, are divided into several subtasks:

• determining and maintaining the optimal volume of receivables,
• debt turnover;
• monitoring the quality of accounts receivable.

Naturally, these subtasks fall on the shoulders of salespeople and require qualified accounts receivable management. My experience in managing sales departments shows that efforts to recover accounts receivable are confidently higher in terms of problems among other tasks of the sales department and are one of the most effective measures to optimize enterprise costs and increase sales efficiency. Repayment of debt within the terms planned by accounting policy is a real opportunity to replenish much-needed working capital for any company.

Accounts receivable management consists of the same management functions that are not specific to any other type:

• planning,
• organization,
• motivation;
• control and analysis.

Accounts receivable planning is a process of preliminary financial calculations, assessments and management decisions. In order for receivables planning to be realistic, and therefore effective, it is necessary to formulate the organization’s strategy, determine a sales policy, and select rational parameters for receivables. Planning the amount of accounts receivable was, is and will be one of the most important.

Organization of accounts receivable management , ongoing work with accounts receivable, should become a mandatory aspect of the sales department and will require the close attention of executives and managers. Determining approaches to managing accounts receivable, stages and methods is a problem that does not have a clear solution and depends on the specifics of the enterprise’s activities and the personal qualities of management. Since accounts receivable management is a component of the enterprise management system, the process of managing it can be carried out in stages. In addition, accounts receivable management occurs over time, and it is natural that it must be presented in the form of some stage system.

Receivables management requires transparency. comprehensive, timely and up-to-date information about debtors, payments and debts: data on invoices issued to debtors that have not been paid at the moment; time of overdue payment for each invoice; the amount of bad and doubtful accounts receivable, assessed on the basis of standards established by the company; credit history of the counterparty (average period of overdue, average loan amount). Typically, such information can be obtained by examining the accounting system.

Motivation means a set of administrative and psychological aspects that determine the behavior of the debtor and the manager of your company as a whole.

Activities to control accounts receivable - preparing action standards, comparing actual results with standard ones. In the process of monitoring receivables, information is collected on the financial position of debtors, on which the status of receivables depends. The main difficulty at this stage lies in determining the minimum volume and range of data that allows the managing subject to have a clear idea of ​​the state of the control object. This circumstance is connected with two points. The first point is due to the fact that collecting and processing accounting information requires funds, which are always limited. The second point is due to the fact that information may be duplicated and late, and this does not contribute to making an informed decision. Analysis of receivables is the study and identification of factors whose influence led to deviations in the actual parameters of the state of receivables from planned indicators.

The debt repayment period has been violated: consequences in the seller’s accounting

A debtor's debt that is not paid on time and is not secured by anything is recognized, according to accounting standards, as a doubtful debt and requires the mandatory creation of a special reserve for doubtful debts in accounting (clause 70 of the Regulations on Accounting and Reporting).

All companies that have such debts, including small companies, are required to create a reserve in accounting.

The material “Provisions for doubtful debts in accounting” will tell you how to reserve overdue receivables in accounting.

In tax accounting, the creation of such a reserve is voluntary. It is necessary to take into account that from 2020, according to the norms of paragraph 1 of Art. 266 of the Tax Code of the Russian Federation, only that part of the debtor’s debt that exceeds accounts payable is considered doubtful. In previous periods, firms could legally include in the reserve the entire amount of doubtful receivables, even in the presence of counter-debts payable (letter of the Federal Tax Service of Russia dated December 24, 2013 No. SA-4-7/23263).

Learn about the tax features of creating a reserve for doubtful debts from the material “Provision for doubtful debts in tax accounting (nuances).”