Nikolaev I.A. - Management Accounting and finance. - 2009. - No. 3.

The article is devoted to a topical problem today - accounts receivable management in conditions of the financial crisis. The author considers the measures that a company should take to minimize financial losses from non-repayment of debt, the methodology for choosing the optimal method of debt restructuring, and gives an example of modeling the structure of the balance sheet and cash flows for adjustment purposes credit policy.

Accounts receivable as a risk factor

The global financial crisis, which provoked a drop in production in many industries, numerous disruptions in production chains, and bankruptcies of enterprises, turned accounts receivable management into the most relevant area of ​​the organization’s activities. In these conditions, the financial policy of an enterprise must take into account all possible consequences crisis and be conservative in a good way. It is necessary to think through the company's actions in the market as carefully as possible from the point of view of ensuring its safety and financial stability.

In order to minimize losses associated with the occurrence of bad accounts receivable, the following rules should be followed.

• It is necessary to take a more critical look at the principles that guide the company when supplying products and providing services. If under normal conditions the risk of non-repayment of debt was small and was fully covered by the benefits of selling on credit, now, when many companies have begun to experience financial difficulties, this risk needs to be reassessed. For this purpose, you can use both external sources of information (publicly available market information, specialized press, information from third parties) and actual data on the payment discipline of the counterparty over the past three to six months.
• If the structure of the company’s balance sheet has undergone significant changes (the share of bank loans and accounts payable in the balance sheet liabilities has decreased, turnover has fallen, etc.), perhaps the amount and structure of receivables should also change to correspond to the new state of the enterprise’s economy. In most cases, this leads to a tightening of credit policy and a reduction in the share of sales on credit.
• If overdue debt occurs, you should closely monitor the economic condition of the counterparty and take timely measures, because the risk of losses in the current environment has increased significantly. The sequence of actions in this case should be as follows.

1. If there is a delay lasting more than a week (if the grace period was one month) or two weeks (if a grace period was granted from one to three months), you must contact the accounting services (or procurement department) of the counterparty and make sure that the delay is not related to the lack of or loss of primary documents.
2. If the counterparty has received the documents, but the money has not been received, it is necessary to send a letter to him with a payment reminder. The letter can be in any form; the nature of the wording, as a rule, depends on how great the delay is and how much the company values ​​the relationship with the client.
3. In parallel with sending letters, it is useful to contact representatives of the counterparty by telephone. If the amount of debt is small, this can be done by a credit controller (at the executor level), but if the amount of debt is significant and its term has exceeded acceptable limits, the issue should be resolved at the level of top management (financial director, commercial director, general director) .
4. If the client has received the primary documents, but no funds are received from him, the shipment of products to this client should be immediately stopped on deferred payment terms.
5. If the problem debtor is also a creditor of the company, you should suspend payment of his bills until the issue of closing the receivables is clarified.
6. The judicial solution to the problem is a last resort and, as practice shows, is not always effective. It is often much more profitable to agree on restructuring or partial write-off of debt than to go to court or “bankrupt” the counterparty.

Choosing between several alternative ways debt recovery (court, restructuring, debt write-off), it is necessary to compare the discounted value of the funds that the company will be able to receive upon the sale of each, and choose the one at which this value will be maximum. Of course, the probability of a particular outcome should be assessed.

For example, company X owes company Y 100 thousand rubles. The following options exist to solve the problem:

1. sue company X; in case of success, the probability of which is 60%, after eight months company Y will be returned funds in the amount of 80 thousand rubles;
2. write off 50% of the debt and close the remaining 50% within three months in equal installments; The probability of a refund with this option is 80%.

Let's say the discount rate is 24% per annum (2% per month). Then the discounted cost of funds in the first case will be:

The discounted cost of funds in the second case will be:

Thus, the option of a court decision looks more attractive. However, the following circumstances are not taken into account:

• legal costs (not only monetary, but also labor, organizational, and reputational) can be very significant;
• in case of developments in the first option, the company will receive money, but will lose the client; the second option assumes that the client’s business will be saved (including thanks to the help of creditors who restructured his debts and gave him the opportunity to develop further), the client will remain loyal to the company and continue cooperation - this factor should also be taken into account when making a decision.

How to determine the prospects for continued cooperation with a client when making a decision on debt restructuring?

Let’s say the client’s debt is 1 million rubles. In case of a judicial solution to the problem, the funds will be returned in full, but only after a year and the client will refuse to continue cooperation. If the debt is written off, the client will agree to continue working with the company; over the next year, the value of his orders will presumably amount to 500 thousand rubles. per month. The trade margin on the company's products is 30%. Is it worth it to write off debt?

Let's say the discount rate is still 24% per annum. Current value (Present Value, PV) The “judicial” scenario is:

The current value of the write-off option is determined by the sum of the discounted values ​​of the marginal income from working with the client during the forecast period:

Thus, continuing to work with a client is significantly more profitable than ending the relationship. Naturally, there is a risk that the client will not pay for new orders, so it is necessary to negotiate in advance such conditions for the resumption of cooperation that minimize financial risks (work on prepayment, bank guarantees, etc.).

In addition to receiving marginal income, working with a client is preferable to breaking up a relationship for a number of reasons:

• in times of crisis, having a stable and extensive client base becomes especially important, since in this case the share of each client in the company’s turnover decreases and the loss of one or two clients is not so critical for the company;
• the greater the company’s sales volume, the larger the client it becomes for its suppliers, which allows one to negotiate more favorable terms of cooperation (lower prices, increased deferred payment, etc.);
• maintaining sales volume at a level comparable to the pre-crisis level allows us to avoid staff reductions, curtailment of promising projects, etc., i.e. the company does not lose its potential, but, on the contrary, gets a chance to increase its market share after the end of the crisis at the expense of its less successful competitors.

Thus, companies often decide to continue cooperation with a client even in cases where such a scenario is less profitable from the point of view of marginal analysis: many not so obvious factors can outweigh the immediate desire to get their money back. In addition, companies that adhere to an aggressive financial policy do not let go of their clients so that they do not go to competitors, and even lure away other people's clients if their financial situation allows it. In a crisis, such measures are more risky, but, on the other hand, the effect of their use can be very significant.

Quite often, a program of action is chosen, as they say, “by eye” or through an expert assessment carried out by the company’s management. In addition, it is not always possible to say with confidence that when restructuring debts, the client will still pay the bills. However, in some situations such a calculation can be very useful. For example, companies have known each other for a long time, are extremely interested in cooperation, and making a decision to change the terms of the partnership is very difficult, primarily psychologically. In this case, the proposed calculation can be a powerful argument in negotiations. When it comes to debt restructuring, counterparties often ask the question: why are the restructuring parameters exactly as they are - the deferment is quite small, and not much is written off. The calculation can prove that it is the proposed restructuring scheme that is beneficial to both the creditor and the debtor, this will help persuade the debtor to make the decision you need. Thus, in cases where there are several acceptable options for action, calculation helps to find the most optimal one. Sometimes the final decision to change the terms of cooperation with a particular counterparty is made by the commercial service or even the general director, but the financial director is obliged to give his expert opinion on this transaction. Using such a calculation, he can justify his proposals, and the general director himself will decide whether to rely on the proposed approach or not. Perhaps, guided by his own considerations, including those of a strategic nature, he will not agree with the arguments of the financial director and will make another, more correct, in his opinion, decision.

The good thing about the proposed approach is that it is universal and does not depend on either the industry or the size of the business. In addition, an important psychological nuance should be mentioned: people, as a rule, trust numbers more than words.

Adjustment of credit policy

If the structure of the company’s balance sheet has undergone significant changes as a result of the crisis (the share of bank loans and accounts payable in the balance sheet liabilities has decreased, turnover has fallen, etc.), then its credit policy towards customers must also change to correspond to the new state of the enterprise. To do this, it is necessary to model a new balance sheet structure and cash flow structure.

Let's look at a simple digital example of how this can be done.

Let's say that before the crisis the company's balance sheet had the structure presented in table. 1.

Table 1. Structure of the company's balance sheet before the crisis

In a crisis, it is necessary to model changes in the main balance sheet items. Let's say the following changes are planned:

1. suppliers will tighten their credit policy, which, together with a decrease in purchase volumes, will lead to a reduction in accounts payable to 100 thousand rubles;
2. a decrease in purchase volumes will lead to a reduction in raw materials inventories in the company's warehouses, and a decrease in production volumes will lead to a reduction in inventories finished products; the total cost of inventories will decrease to 200 thousand rubles;
3. after the expiration of one of the loan agreements, it will not be possible to renew the credit line, the amount of debt on loans and borrowings will be reduced to 100 thousand rubles.

By reflecting all these changes in the balance, it is possible to model its state during the crisis (Table 2).

Table 2. Structure of the company's balance sheet during the crisis

The example shows that to maintain balance, the amount of accounts receivable must be reduced to 100 thousand rubles. Knowing the equilibrium level of accounts receivable and the sales volume planned for this period, it is possible to model changes in the enterprise's credit policy.

Another equally important task is maintaining a balanced cash flow. Based on the example given above, let's simulate the company's cash flow before and during the crisis.

Let’s say the structure of the company’s cash flows before the crisis was as follows:

• operating income:
  - from the sale of finished products, 200 thousand rubles;
• payments for operating activities:
  - payment for raw materials and materials, 80 thousand rubles;
  - remuneration of personnel, 30 thousand rubles;
  - calculations for taxes and fees, 50 thousand rubles;
  - administrative and commercial expenses, 20 thousand rubles.
• operating balance- 20 thousand rubles.

For simplicity, we will assume that the company had no cash flows associated with financing and investing activities.

To survive during a crisis, it is necessary that the cash balance is not consistently negative: at a minimum, outflows should not exceed inflows, and ideally, to ensure protection from unfavorable fluctuations in market conditions, the company should have a small surplus of the cash balance, therefore, to form an equilibrium, it is necessary to assess the level of cash outflows in order to reach the minimum level of cash inflows.

So, the company's managers assessed changes in cash flows as follows:

1. due to the reduction in production, the level of purchases will decrease by 50%;
2. payments to staff will be reduced by 30% (due to the reduction of some employees and a reduction in the bonus part of the compensation package);
3. a decrease in turnover and profit will lead to a decrease in VAT and income tax, and a reduction in personnel will lead to a decrease in the unified social tax; the overall tax reduction will be 40%;
4. management expenses as part of cost reduction measures will be reduced by 30%.

The new level of operating expenses will look like this:

• payment for raw materials and materials - 40 thousand rubles;
• staff remuneration - 21 thousand rubles;
• calculations for taxes and fees - 30 thousand rubles;
• administrative and commercial expenses - 14 thousand rubles.

Total: 105 thousand rubles.

Thus, the maximum level of fall cash inflows is:

(200 – 105) / 200 = 47,5%.

The amount of cash receipts calculated in this way should become a direct guide to action for sales department employees. They are simply obliged to ensure this level of revenue and to achieve this goal they can use the entire arsenal of tools available to them (providing discounts for faster payment, more active work with overdue receivables, aggressive marketing policy, etc.).

In fairness, it should be noted that this example, of course, is a strong simplification of the real picture that takes place in existing companies. In practice, the relationship between indicators turns out to be much more complex; the factors influencing the value of assets, liabilities, income, expenses and cash flows are an order of magnitude greater, many of them are formed within the enterprise, many come from outside. To build an objective picture of the future state of the company and select the optimal program of anti-crisis measures, such rough estimates are not enough; it is necessary to build a financial and economic model of the enterprise that takes into account the value of key performance indicators in their interrelation and allows for scenario (what-if) analysis. Such a model can be built manually using Excel or using a specialized software product.

Debt monitoring

Being one of the most risky balance sheet items in terms of the likelihood of financial losses, accounts receivable require regular monitoring in order to promptly localize unfavorable trends and take the necessary measures to eliminate them. The methodology for conducting such monitoring may be as follows.

1. Weekly (or at other intervals most appropriate to the dynamics of the enterprise’s economic activity) it is necessary to create a register of accounts receivable (Table 3).
2. A register of shipping documents is maintained. Data must be entered into the register either from the accounting system (balance sheet for account 62) or from other sources (ERP system, CRM system, etc.).
3. If we create an accounts receivable register in Excel, then it becomes possible to make selections directly in it using the “Autofilter” command and the built-in “Subtotals” function. In addition, on the basis of the register, you can draw up various reports, the most convenient of which are a report on the structure of debt of counterparties (Table 4), a summary report on receivables (in relation to the Central Federal District) (Table 5), a report on the dynamics of receivables (by as at the beginning of each week or other period) (Table 6).

Table 3. Accounts receivable register

Table 4. Structure of counterparties' debt

Table 5. Accounts receivable summary report

Table 6. Report on the dynamics of accounts receivable

For the convenience of working with the register and reports, it is advisable to keep them in one Excel file (on different sheets) and send it weekly to the company management.

The collection of accounts receivable, carried out by the finance department or other department responsible for this issue, also needs to be monitored. For this purpose, you should keep a journal for working with accounts receivable, which will reflect the specific actions of the performers to collect it. The financial department employee dealing with accounts receivable operates according to a clear algorithm.

1. The client has a debt (not yet overdue) - the employee finds out the contact details of the debtor and registers them in the client register.

2. The debt has become overdue - the employee contacts the financial department leading the client and finds out how the debt will be collected: directly through the financial department or through the central financial department (since often an individual agreement is reached with the client at the level of manager or head of the sales department terms of payment).

3. If collection occurs through the Central Federal District, all communication takes place with the manager of the Central Federal District. If directly, the following algorithm is activated:

1. an employee of the financial department contacts the debtor by phone, contacts the debtor’s employee responsible for settlements, finds out whether the documents have been received and whether everything in the calculations is correct;
2. if documents are not received, they are sent again; if necessary, reconciliation of calculations is carried out;
3. after some time, the employee contacts the debtor again and finds out whether the sent documents have been received and agrees on the timing of receipt of funds to pay the debt;
4. if there is no action on the part of the debtor, the employee sends him an official letter demanding to repay the debt; if the amount of debt exceeds a certain amount (say, 1 million rubles), the issue is taken under control by the financial director;
5. if there is no response from the debtor, a decision is made to stop working with him and go to court;
6. at the level of the financial director, options for debt restructuring, granting deferments, etc. are possible.

All these actions are recorded by the employee in the accounts receivable journal using standardized records (Table 7).

Table 7. Accounts receivable journal

Purpose of the journal columns:

• «№» - serial number of the journal entry;
• "Date of"- date of the action described in the journal;
• "Debtor"- name of the debtor organization (selected from the list of debtors);
• "The contact person"- name and contact details of the employee of the debtor organization with whom the interaction was carried out;
• "CFD"- financial responsibility center that manages this client (selected from the list of financial centers);
• "Scheme"- scheme of work with the debtor; two options are possible:
  1) directly when a financial department employee contacts directly with the debtor;
  2) through the Central Federal District when an employee of the financial department contacts the manager of the Central Federal District leading a given client, and the manager, in turn, communicates with the client; in this case, the manager of the central financial district is considered the debtor, and communication with him is recorded in the journal as communication with the debtor;
• "Situation"- description of the initial situation that caused the employee’s subsequent actions (selected from the list, for this you can use the Excel “Data / Check” command):
  1) “No information about the client” - the client is not registered in the register, and the financial department employee intends to obtain this information;
  2) “An overdue debt has arisen” - the client did not pay for the services provided on time;
  3) “Overdue debt repaid” (in whole or in part);
  4) " Feedback" - the debtor himself got in touch (by phone, email or some other way);
  5) “Lack of response” - the debtor should have sent money or otherwise settled the issue of debt repayment, but did not do so;
• "Result"- description of the action taken by the employee in connection with the situation:
  1) “The debtor is registered” - the employee received information about the debtor and entered it into the customer register;
  2) “Data requested” - the employee was unable to obtain the data, and he sent a corresponding request to the revenue center;
  3) “Contact has been established” - the employee contacted the debtor and discussed the current situation with him;
  4) “Contact not established” - the employee for some reason was unable to contact the debtor;
  5) “Money promised” - the debtor promised to pay off the debt;
  6) “Documents have been sent” - it turned out that the debtor does not have primary documents, and they were sent to him again;
  7) “Information promised” - the debtor promised to send documents or information (for example, a restructuring proposal);
  8) “Shipment terminated” - the debtor does not take action to repay the debt, and the company stops working with him;
• "Next Action"- a description of what the employee plans to do in the future:
  1) “Debt is closed” - the debtor has repaid the debt, and control over it ceases (until a new debt arises);
  2) “Call through...” - the debtor needs time to make a decision on actions aimed at repaying the debt;
  3) “Transfer of the debtor” - work with the debtor is transferred to the financial director / central financial department or the legal department to initiate prosecution;
• "Sum"- if the situation “Overdue debt repaid” is selected, this column indicates the amount of funds received from the debtor; in all other cases, the amount of overdue receivables of the counterparty is indicated;
• "Notes"- brief comments from the employee regarding this situation.

Action options for each column can be adjusted and added as needed.

We list the advantages of this method of maintaining a registry:

• selecting values ​​from the list speeds up the journaling process and simplifies the perception of the information contained in it;
• the use of lists allows you to apply filters, making it easy to make various selections from the register (history of relationships with a specific client, the number of contacts for a period, the amount of money collected from debtors, etc.);
• this method makes it easier to assess the quality of work of a financial department employee in collecting receivables; the file must be placed on a corporate server in a folder accessible to both financial department employees and company management, and also, if necessary, to sales department employees.

Balance of profitability and liquidity

As a rule, there is a dependence of the demand for a product on its price: the lower the price, the higher the demand, and vice versa. The “behavior” of demand when credit policy changes is similar: with an increase in deferment (or with the transition from prepayment to shipment on credit), the volume of sales increases. Since pricing and credit policies are, as a rule, interconnected and implemented simultaneously, it becomes possible to increase the company’s liquidity by reducing profitability - reducing the trade margin (or implementing sales promotion measures) allows you to increase cash flow and thereby alleviate the condition of the enterprise.

As can be understood from the example above, when developing an anti-crisis credit policy, much attention should be paid to the structure of the company’s balance sheet and the structure of cash flows, while P&L (profit and loss statement) indicators are practically not used in the analysis. This is due to the fact that when a budget deficit or cash gaps arise, a reduction in the trading margin, which may result in a reduction in profits (or a short-term loss), is a completely acceptable technique. It is only important to apply it in doses so as not to destroy the enterprise until the moment when the crisis subsides and an increase in demand allows profitability to be restored.

Conclusion

A financial crisis is a serious test for a business of any size, industry and form of ownership. The curtailment of bank lending, a decrease in sales volume, a deterioration in the balance sheet structure and many other negative factors, especially when they act simultaneously, can demoralize the company's management and cause uninformed decisions to be made. In these conditions, the main thing to remember is: do not let emotions determine your actions; short-term conditions should not overshadow the company’s strategic goals, reputation and high standards The quality of work with counterparties is what will always be valued and will ultimately become the key to success. In the case of accounts receivable faithful assistants There must be accurate calculation, caution and diligence.

Not only profit, but also the fate of the enterprise depends on a competent policy for managing liquidity, assets and liabilities, since one of the signs of bankruptcy of a company is not the loss of capital, but rather the loss of liquidity.

Fundamentals of accounts receivable and payable management

Control of accounts receivable involves setting credit risk limits, calculating and creating reserves for doubtful debts, working with overdue debts and other control measures. In order to reduce credit risks, enterprises are recommended to approve the following limits:

• maximum deferred payment period;
• the maximum amount of debt in relation to one or a group of related debtors;
• maximum amount of credit risk.

Control of accounts payable also consists of establishing various kinds of limits and standards (maximum amounts of debt in relation to one or a group of related creditors, total accounts payable, etc.). In Information of the Ministry of Finance of Russia No. PZ9/2012, as part of liquidity risk management, it is recommended to analyze financial liabilities by maturity relative to the reporting date in accordance with the conditions of receipt. For example, the following time intervals can be allocated: no more than one month; from one month to three months; from three months to one year; from one year to three years; over three years.

Moreover, if the counterparty has the right to choose the payment term, the obligation is included in the time interval based on the earliest date on which payment can be demanded from the organization. For example, a financial liability that an entity must repay on demand is included in the earliest time interval.

In order to maintain a balance between assets and liabilities, it is necessary to control them according to the following parameters:

• in terms of volume (the excess of accounts payable over accounts receivable allows the enterprise to develop at an accelerated pace);
• by cost (the excess of the placement rate over the attraction rate generates income);
• by timing (the consistency of assets and liabilities ensures the fulfillment of obligations at any time interval).

Features of managing receivables and payables during economic recovery

In a favorable macroeconomic environment, the management of receivables and payables aims to increase the cash flow of the enterprise based on the time value of money, because The time value of money suggests that funds available at the moment are preferable to those received in the future.

This is achieved by attracting resources at lower rates and at long terms and their placement in assets that bring higher interest and divert funds for shorter periods. The task of timely repayment of debts, although it occupies an important place, is not urgent, since the vast majority of counterparties do not experience difficulties in fulfilling their duties. Therefore, in the phase of economic recovery, enterprises give priority to entering new markets, promoting new products, etc. Work on collection of receivables, of course, is also underway, but is not a priority task.

The policy in the field of accounts payable is based on the time value of money, the effect of financial leverage and comes down to finding the most effective sources of financing in terms of terms and lending rates. An increase in accounts payable is not an alarming signal, but, on the contrary, demonstrates that third parties, including lenders, perceive the organization as a reliable debtor. Since accounts payable are a source of financing, organizations strive to use them for as long as possible, even to the point of violating contractual payment terms. However, creditors usually do not perceive such a signal as a deterioration in the financial condition of the debtor.

The main features of working with receivables and payables in stable times are as follows:

Features of managing accounts payable and receivable during deflation

The economy has two states characteristic of times of crisis, fraught with the most catastrophic consequences. The first is deflation. The second is hyperinflation. Let's consider how they manifest themselves and what the tactics for managing receivables and payables should be, depending on the signs of a crisis situation.

With deflation, prices for goods and services decrease, including a fall in the wages of the working population. At first glance, the fact that prices are falling is not so bad. However, deflation is accompanied by an increase in unemployment, and when this process drags on for years or decades, the impossibility of career growth and professional self-realization has a negative impact on population growth, which leads to the aging of the nation and an even greater pull into a deflationary spiral. Companies, in turn, not believing in the revival of the economy, do not invest in new production and projects, which reduces demand from the real sector of the economy.

Currently, one can detect signs of deflation in both the global and national economies. This is manifested in lower energy prices, strengthening of the dollar (the price of money increases), and worsening debt burden. In the Russian economy, signs of deflation are being eroded due to the factor of dependence on import supplies. Among the deflationary signs are a decrease in wages and a drop in real estate prices, that is, deflation is limited to those areas in which the influence of import dependence is minimal.

With the onset of deflation, liquidity management moves to the zone of control of timely repayment of debts, this is especially true in relation to “receivables”. Those organizations that are in a winning position are the ones that, before others, become concerned about the worsening economic climate and tighten their policies towards debtors. Lenders are also becoming more cautious and eager to collect debts. In conditions of liquidity compression, enterprises are recommended to rank their creditors based on importance, and in the event of a cash shortage, also payment documents based on priority of execution.

Debt management depending on the creditor

Features of managing accounts payable and receivable during hyperinflation

Hyperinflation is inflation in which price increases reach a tenfold or greater increase per year. During hyperinflation, savings are burned out at the highest rates; entrepreneurship is aimed at super-short cycles, because the planning horizon is sharply reduced. For governments, hyperinflation is beneficial because it “burns” all kinds of debts, and primarily public debt. Since hyperinflation causes prices for most goods (including raw materials and energy) to rise, cash flow problems in the country disappear.

At the corporate level, we note that since hyperinflation sharply depreciates the value of debt, to protect funds, an organization should work with buyers on an advance payment basis. If in conditions of deflation creditors fear for the financial condition of the debtor, then in hyperinflation they are concerned about the depreciation of the debt.

Basic properties of receivables and payables during hyperinflation

The article describes two alternative ways to resolve the crisis. Historical experience shows that deflation often precedes hyperinflation. As for the assessment of the current situation, in the opinion of the author, given the difficult macroeconomic environment, now is the right time to tighten liquidity policy. Liquidity management takes a two-pronged approach in that cash shortfalls can be met by early withdrawal of assets and/or deferment of liabilities. Mobilization of assets to replenish liquidity is based on accelerating the collection of receivables, reducing inventories, and selling non-core assets. The main methods of generating liabilities involve signing loan agreements with banks in order to open financing limits (unused limits act as liquidity reserves), receiving installment plans from creditors and other similar measures. In general, liquidity management is designed to ensure such a ratio of assets and liabilities in which there is no need to take urgent measures to raise funds.

Kurbatova Daria Aleksandrovna, Student, Lipetsk Branch of RANEPA, Lipetsk [email protected]

Kulikova Natalya Vyacheslavovna, Student, Lipetsk Branch of RANEPA, Lipetsk [email protected]

Accounts receivable management during a crisis

Annotation. The article is devoted to the features of accounts receivable management during a crisis. A description is given of the main problems that relate to accounts receivable. The main groups of reasons that lead to an increase in accounts receivable are indicated, as well as ways and means of influencing the recovery of debt in a crisis. Key words: accounts receivable, crisis, financial risks, factoring.

Accounts receivable is an integral element of the sales activities of any enterprise. A fairly large part of it in the overall structure of assets reduces the liquidity and financial stability of the enterprise and increases the risk of financial losses for the company. Modern conditions for the development of the Russian economy provide for the dynamism of the development of mutual settlements between counterparties. In such conditions, special attention must be paid to accounts receivable. Very often it is defined as a component of working capital, which represents requirements for individuals or legal entities regarding payment for goods, products, services. There is a tendency to identify accounts receivable with a commercial loan. A commercial loan is provided to the buyer taking into account its cost (company resources are provided for use on a paid basis) and urgency (the period of use of the funds provided is limited). Accounts receivable is the amount of debts due to an enterprise, firm, company from other enterprises, firms, as well as citizens, who are their debtors. The total amount of accounts receivable includes payments receivable under lease, accounts receivable from buyers and customers, subsidiaries and affiliates, for claims; advances issued to personnel, suppliers, contractors; advance payments to the budget, state trust funds and insurance; debts of founders on contributions to authorized capital; debts of personnel for other operations, and other debtors, including settlements with intradepartmental enterprises. At the same time, intradepartmental settlements are understood as settlements between enterprises and organizations that have independent balance sheets and are part of one specific ministry, department, corporation, association, concern or association. Debtors can be both legal and individuals who owe the enterprise cash, cash equivalents or other assets. According to accounting data, it is possible to determine the amount of debt on any date, but usually this amount is determined on the balance sheet date. The global financial crisis, which provoked a drop in production in many industries, numerous disruptions in production chains, and bankruptcies of enterprises, turned accounts receivable management into the most relevant area activities of the organization. In these conditions, the financial policy of an enterprise must take into account all possible consequences of the crisis and be conservative. It is necessary to think through the company's actions in the market as carefully as possible from the point of view of ensuring its safety and financial stability.

Today, almost no business entity exists without accounts receivable, because one of the conditions for the competitiveness of almost any enterprise is the provision of commercial credit to its customers. The exception is a small list of suppliers who have such a strong position in the market that they can dictate their payment terms. Receivables arise, as a rule, when goods (works or services) are sold on deferred payment terms. This fact gives additional features for both sides:

for the buyer it is an opportunity to use additional working capital free of charge;

for the supplier, this is a way to attract buyers and an opportunity to expand the market for goods, works, and services. Based on the data Federal service According to state statistics, in 2014, accounts receivable amounted to about 20% of the total assets of large and medium-sized Russian enterprises (as of October 1, 2014, 28.5 trillion rubles out of 139.9 trillion). But this is almost 65% of Russia’s external debt in 2014! It is interesting that if we convert the receivables of Russian enterprises for 2014 into the volume of black beluga caviar, then this caviar can fill the entire Amazon River valley. The volume of receivables from buyers and customers, which at the beginning of December 2014 accounted for 52.6% of the total receivables The debt of these enterprises is growing in our country every year. According to Rosstat, from January 2010 to December 2014, this figure more than doubled, from 7.5 to 15.9 trillion rubles. Over the past five years, the share of overdue debt in the total volume of receivables from buyers and customers varied from 8 to 12%, remaining mostly within the range of 911%. In the last two years, there has been a tendency towards an increase in the share of overdue debt, which can be explained by the intensification of negative phenomena in the Russian economy and the gradual increase in problems with payment discipline. The instability of the economic situation in Russia leads to an increase in risks when performing any type of activity with deferred payment. We propose to consider the main reasons for the growth of receivables in a crisis and the ways in which an enterprise can influence them. The main groups of reasons leading to an increase in receivables are: external factors; internal reasons. Macroeconomic reasons include: increasing rates on loans as short-term , and long-term, which ultimately complicates settlements between companies, since they begin to adhere to the principle: “It is better to pay penalties under the agreement than to take out a loan to pay” (if the penalties are lower than the percentage of the loan); the level of inflation in the country: with high inflation, many companies strive to repay their debts as late as possible, guided by the principle “The later the debt is due, the lower its amount” (again, if the fines under the contract are low). The enterprise itself has little influence on the occurrence and manifestation of external factors, but can change your marketing policy taking them into account. For example, analyze the possibilities of entering new sales markets, use inter-niche spaces, adjacent markets, change the type of products (works, services). The creditor company has maximum influence on the manifestation of internal factors, since their occurrence is associated with the organization of its internal processes. Working with this group of reasons includes a variety of methods, the environment of which includes methods such as: rejection of problem customers; identification of 20% of customers who account for 80% of overdue receivables (according to the Pareto law), carrying out individual work with each; introduction of methods for controlling receivables, introduction the maximum possible amount of debt, assessment according to special criteria of the financial position of each counterparty before concluding an agreement, control of the size of receivables, analysis of the reasons for the occurrence of receivables and their delinquency; refusal to increase the size of receivables until the previous debt is fully paid. Alternatively, you should determine the size of the credit limit for each buyer and automatically include it in the stop list if the credit limit is exceeded, and also refuse shipment until the existing debt is repaid;

timely transition to formal debt collection procedures, immediately after the moment of delay, that is, the beginning of work with the debtor to repay the debt before it becomes overdue; the desire to increase legal guarantees in situations of late payment (penalties, fines for late payment, termination of shipments in case of excess debt limit and the like); development of a system of discounts for early payment of receivables by the client; use of legal know-how, such as an alternative to collateral, “circular transactions” (purchase and subsequent sale of securities. It should be said that often for successful management of receivables, an enterprise does not have enough : – qualified employees for the preparation of standard documents, which can then be used by technical and less professional workers; – familiarity with the peculiarities of the activities of government bodies, – knowledge of methods for implementing and promoting collection activities;

– call center, including premises, equipment, personnel; – software; – service for personal interaction with debtors. last years In Russia, there has been a significant increase in demand for factoring services from clients, and the number of offers for them from the banking sector has also increased. The need for factoring is experienced by almost all companies that regularly or often work on deferred payment terms. Factoring is a type of trade commission operation combined with lending of the client’s working capital, associated with the assignment by the client of the supplier to the factoring company of unpaid payment claims for goods supplied, work and services performed and the rights to receive Thus, factoring includes collection of the client’s receivables (receipt of funds according to payment documents), lending and a guarantee against credit and currency risks. The attractiveness, popularity and relevance of factoring is due to the fact that it combines several functions at once: firstly, financing of working capital; secondly, collection of the client’s debt; thirdly, if provided for in the contract, factoring takes on the risk of non-payment, thus acting as a as an insurer of financial risks. This set of functions makes factoring an indispensable mechanism for small and medium-sized enterprises, whose access to credit is traditionally difficult. Working with accounts receivable is an important point in the activities of any enterprise and requires the close attention of 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. Stop lists (a list of payment card numbers prohibited from accepting) are suitable for wholesale trade in food products, and for one-time deliveries For expensive equipment, a thorough assessment of the counterparty’s financial position before concluding a contract is appropriate.

The secret of effectiveness here lies in an integrated approach. Thus, timely monitoring and analysis will allow timely identification of overdue debt and promptly take measures to collect it. The impact on the debtor can be hard or soft: you can immediately sue, or you can support the counterparty by offering him more accessible methods of repaying obligations, for example, barter or deferred payment. Thus, currently, virtually every tenth ruble of the receivables of buyers and customers large and medium-sized Russian enterprises represent overdue debt. The most effective management of accounts receivable can be when it is distributed in several directions. At the same time, special attention should be paid to internal factors, which the company can manage most effectively thanks to the properly organized activities of the management team, while external factors are often beyond influence. A financial crisis is a serious test for a business of any size, industry and form of ownership. The curtailment of bank lending, a decrease in sales volume, a deterioration in the balance sheet structure and many other negative factors, especially when they act simultaneously, can demoralize the company's management and cause uninformed decisions to be made. In these conditions, the main thing to remember is that short-term conditions should not overshadow the company’s strategic goals, reputation and high standards of quality in working with counterparties - this is what will always be valued and will ultimately become the key to success. In the case of accounts receivable, accurate calculation, caution and diligence should be faithful assistants. The financial risks of an enterprise in a crisis increase, and therefore it is worth paying special attention to managing accounts receivable and working with accounts receivable. Correctly chosen management methods will help avoid most of the problems associated with it, and will also help the organization maintain financial stability.

Links to sources1.Modern economic dictionary. Raizberg B.A., Lozovsky L.Sh., Starodubtseva E.B. 6th ed., revised. and additional M. (INFRAM, 2011) 2. Official website of the Federal State Statistics Service // www.gks.ru 3. Modern economic dictionary. Raizberg B.A., Lozovsky L.Sh., Starodubtseva E.B. 6th ed., revised. and additional M. (INFRAM, 2011)4. Financial and credit encyclopedic dictionary. -M.: Finance and Statistics. Under general ed. A.G. Gryaznova. 2010

Today everyone has recognized the financial crisis. From the “virtual” area of ​​the stock market for most of us, it has spread to the sphere of the real economy.

In recent years, most companies and enterprises have been actively relying on loans. The business financed itself and refinanced its debts. However, now access to capital has practically ceased and this has led to a sharp increase in accounts receivable for most companies.

The situation is aggravated by the fact that in the near future companies will only be able to rely on their own strength and resources, but debts must be repaid, and in many cases at new rates and in conditions of much worse market conditions.

In connection with the current situation, most companies are forced to find sources of replenishment of their accounts by optimizing work with less liquid assets, because It is necessary not only to repay loans, but also to maintain your business in working order.

In addition, solving this problem allows companies not only to maintain market share, but also to increase it by leaving weaker players from the market.

One of the types of liquid current assets is accounts receivable, so many enterprises first of all began to optimize their activities by improving the efficiency of accounts receivable management.

In fact, most companies use only a few tools for working with debtors, and in a very small number of enterprises the work carried out can be called control system accounts receivable.

Accounts receivable management as a system

Main tasks of the system:

• Assessment of the current situation
• Solving a set of problems determined by the goals of the organization’s credit policy
• Reducing and accelerating accounts receivable turnover.

Where to begin? Look back and look around.

Analysis of the organization's receivables in the previous period

The main objective of this analysis is to assess the level and composition of the organization's receivables, as well as the effectiveness of the financial resources invested in it. The analysis of accounts receivable for settlements with customers is carried out in the context of commodity (commercial) and consumer credit.

On first stage The analysis evaluates the level of the organization's receivables and its dynamics in the previous period. This level is assessed using coefficient of diversion of current assets into accounts receivable:

KOADz = DZ/OA,

where KOADz is the coefficient of diversion of current assets into accounts receivable;
DZ - the total amount of the organization's receivables (or the amount of debt separately for trade and consumer credit);
OA is the total amount of the organization's current assets.

On second stage analysis determines the average collection period of receivables and the number of its turnover in the period under review. The average period for collection of receivables characterizes its role in the actual duration of the financial and general operating cycle of the organization. This indicator is calculated using the following formula:

PIdz = DZsr/Oo,

where PIdz is the average period for collection of receivables;
DZsr - the average balance of the organization's receivables (in general or its individual types) in the period under review;
Оо - the amount of one-day turnover for product sales in the period under review.

The number of receivables turnover characterizes the speed of circulation of funds invested in it during a certain period. This indicator is calculated using the following formula:

KOdz = OR/DZsr,

where KOdz is the number of turnovers of the organization’s receivables in the period under review;
OR - the total amount of turnover for product sales in the period under review;
DZsr - the average balance of the organization's receivables (in general or its individual types) in the period under review.

On third stage The analysis evaluates the composition of the organization's receivables by its individual “age groups,” i.e., by the stipulated terms for its collection.

On fourth stage The analysis examines in detail the composition of overdue receivables, distinguishing doubtful and bad debts. The following indicators are used in this analysis:

receivables overdue ratio:

KPdz = DZpr / DZ,

where KPdz is the coefficient of overdue accounts receivable;
DZPR - the amount of receivables unpaid within the stipulated time frame; DZ - the total amount of the organization's receivables;

average “age” of overdue (doubtful, bad) receivables:

VPdz = DZpr / Oo,

where VPdz is the average “age” of overdue (doubtful, bad) receivables;
DZpr - the average balance of receivables unpaid on time (doubtful, bad) in the period under review;
Оо - the amount of one-day sales turnover in the period under review.

On fifth stage analysis determine the amount of effect obtained from investing funds in receivables. For these purposes, the amount of additional profit received from an increase in the volume of product sales through the provision of a loan is compared with the amount of additional costs for obtaining a loan and debt collection, as well as direct financial losses from non-repayment of debt by buyers (bad receivables written off due to the insolvency of buyers and expiration of the statute of limitations). This effect is calculated using the following formula:

Edz = Pdz - TZdz - FPdz,

where Edz is the amount of effect obtained from investing funds in accounts receivable for settlements with customers;
Pdz - additional profit of the organization received from increasing the volume of product sales through the provision of a loan;
TZdz - current costs of the organization associated with organizing customer lending and debt collection;
FPdz - the amount of direct financial losses from non-repayment of debt by buyers.

Along with the absolute amount of the effect, during this stage of analysis, a relative indicator can also be determined - the efficiency ratio of investing funds in receivables. It is calculated using the following formula:

Cadz = Edz / DZrp,

where KEDz is the efficiency ratio of investing funds in accounts receivable for settlements with customers;
Edz - the amount of effect obtained from investing funds in accounts receivable for settlements with customers in a certain period;
ДЗрп - the average balance of accounts receivable for settlements with customers in the period under review.

The results obtained further help to develop parameters credit policy organizations.

Credit policy in the accounts receivable management system

One of the conditions for the competitiveness of almost any enterprise is the provision of commercial credit to its customers. The exception is a small list of suppliers who have such a strong position in the market that they can dictate their payment terms. Conversely, if an enterprise has unused capacity and its products are easily replaceable on the market, the conditions for sales on credit will be extremely liberal.

When determining credit policy, the company's overall strategy and market objectives are also taken into account.

Accounts receivable are considered one of the assets of an enterprise. At the same time, in order to increase the efficiency of the company’s functioning, it is recommended to minimize the indicators of this debt. Before considering measures to reduce receivables, it is worth defining and considering the very meaning of such an asset.

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This financial indicator refers to the hidden current assets of the enterprise.

Accounts receivable is the sum of debts owed by companies and private clients to the organization in question.

It occurs when goods are received (services are provided) to the client, but only if payment is partial or completely absent from the buyer.

The repayment terms and the size of this indicator can be quite different. In this case, the guarantee of payment is the debtor’s signature on the documents confirming receipt of the goods or services. Despite the fact that accounts receivable is a collection of debts owed to the company, it is classified as an asset because it is considered as an expected receipt of financial resources.

Types of accounts receivable

1. Among the main areas of application of accounts receivable are: Economic
2. , which consists of calculating the total amount of customer debts accumulated in the process of conducting business activities of the enterprise. Accounting
3. , which consists of accounting for the financial assets of an enterprise. Legal
4. , which consists of the rights to property owned by the enterprise as a result of violations in the fulfillment of financial obligations by clients. Financial

, which is to obtain a positive financial flow as a result of completing financial relationships with clients.

Factors influencing the level of accounts receivable

The level and size of the accounts receivable indicator are influenced by internal and external factors, while the latter can only be predicted and cannot be completely eliminated.

1. Among external factors, special attention should be paid to: The general economic condition of the country
2. , which will influence the conduct of financial relationships between different companies. Efficiency of monetary policy central bank It is worth noting that with a lack of working capital in the market, the level of receivables will steadily increase.
3. Inflation indicators of the country. When inflation rises, there is often a decline in debt repayments, since over time inflation will reduce the amount of debt.
4. Type of product and state of the market. When selling seasonal goods and services, as well as when working in a narrow and saturated sales market, the debt ratio increases.

Internal factors include:

1. The thoughtfulness, validity and quality of the enterprise's credit policy. This item includes the correct provision of credit by the enterprise, the establishment of the procedure for obtaining and terms of the loan.
2. Availability of a system for checking and monitoring accounts receivable.
3. Personal and professional qualities of managers and financial specialists of the company.

Ways and measures to reduce debt

There are four main ways to reduce the level of accounts receivable:

1. Effective telephone conversations with debtors, in order to establish the shortest terms for debt repayment and create payment conditions convenient for both parties.
2. Sending a written notice with requests for the debtor to fulfill his financial obligations.
3. Termination of customer service and limiting supplies until debt obligations are repaid.
4. Going to court to receive the amount owed.

Managing accounts receivable becomes the key to successful financial activity of an enterprise. One of the most important measures to reduce the accounts receivable ratio is control of financial settlements with partners.

In addition, it is worth highlighting such activities and operations, the implementation of which will have a positive impact on the level of the considered financial indicator of the enterprise:

1. Constant control of the level of accounts receivable.
2. Methodological assessment of the risks of concluding a particular transaction.
3. Calculation of possible periods for which it is permissible to provide credit to partners.
4. Development of a system of discounts and sanctions for lenders depending on the current situation.
5. Formation of clear rules and standards for conducting credit activities.
6. Introduction of a system for assessing the reliability and stability of an enterprise before providing it with a loan.
7. Development of detailed individual repayment schedules for receivables for each of the debtor partners.

Sample

Let's consider the work of measures to reduce accounts receivable using the example of enterprise 1. For example, this enterprise sells products worth 990 thousand rubles, while payment is received in the amount of 770 thousand rubles. In the course of simple calculations, we receive accounts receivable in the amount of 220 thousand rubles.

Let's consider the activities of enterprise 1 when implementing optimization of financial transactions and applying debt reduction methods. With the introduction of mandatory prepayment by buyers and a system of installment payments to suppliers, the shortage of working capital will decrease. The company can redistribute the profit received in this way for its own needs and payments to repay loans.

When implementing a flexible system of working with clients, it is possible to initially reduce the amount of accounts receivable by half. Thus, if advance payment is required and payments are made in installments, the amount of debt will be 110 thousand rubles.

Stages of decline

Work to reduce the level of debts to the enterprise (both expected to be paid and bad) can be divided into the following stages:

1. Monitoring and analysis of the current financial situation of the enterprise and identifying the amount of debts.
2. Carrying out pre-trial activities aimed at reducing the amount of debt.
3. Formation and filing of a lawsuit and other legal work.
4. Verification of execution court decision.

To complete all the above stages of work, it is necessary to draw up a clear strategy for financial monitoring within the company.

To do this, you need to conduct a full and qualified analysis of the situation to identify sources of debt, assess possible risks and solutions. Based on the results of the analysis, a further decision is made on working with the debtor. To make a correct decision, it is necessary to weigh all the circumstances surrounding the occurrence of the debt and the dynamics of its development.

After evaluating the results of the analysis, there are two ways to resolve the loan repayment. It is possible, as part of pre-trial measures, to find a compromise with the debtor and formulate conditions for timely repayment of the debt with the provision of guarantees. Otherwise, the company has every right to apply to the judicial authorities in order to forcefully collect the amount of debt or property rights in the required amount.

Accounts receivable are formed as a result of the summation of all debts of third parties to the enterprise in question. It implies the subsequent receipt of funds, therefore, an increase in the company’s profits.

To reduce the size of this financial indicator, it is necessary to obtain repayment of debts from clients. To do this, you can use compromise solutions or go to court. In any case, only well-coordinated work of employees, timely analysis and correct reaction depending on its results will help achieve efficiency in the financial work of the company.