Considerations of the importance of Accounts Receivable for companies

Written by:Diomer Antonio Galán Rincón.

Bachelor's Degree.Public Accounting / MSc.Science of Higher Education.

Today, any organization worldwide is in the need to develop and implement strategies that are aligned with its size, its future projection and according to its goals and objectives; in the case of large companies, it is usually the top management levels who deal with the strategic issue; At the time of creating any strategy should be considered to have a very objective vision and it is extremely important that leadership is present to direct all activities of the organization and its staff.

That is why the strategy of an organization must be appropriate for its resources, objectives and environmental circumstances in which it is immersed. According to Fernández (2012), he defines strategy as "the way in which the company or institution, in interaction with its environment, deploys its main resources and efforts to achieve its objectives.

Likewise, within these processes are accounts receivable, which, worldwide, continue to be one of the biggest problems faced by companies. Due to the complexity of today's business environment, it is of utmost importance that companies improve their collection strategies in a more timely manner, since the delay of a collection disrupts the liquidity of the organization.

According to González, (2018); states that, "accounts receivable constitute the credit that the company grants to its customers through an account opened in the ordinary course of business, as a result of the delivery of goods or services". Therefore, an adequate accounts receivable procedure becomes a necessity for companies, since it will depend on maintaining appropriate levels of liquid funds to meet the needs that may arise in the company.

In such a way that the decisions of the company's accounts receivable strategies are not developed in isolation, every credit strategy must be adapted to the needs and purposes of the company in relation to the achievement of its goals and objectives.

In this process context, each strategy must be evaluated to determine its effect on the organization's sales, costs, image and productivity. Since accounts receivable represent a right that is about to become effective, if not collected, they would generate a loss for the company, which should, as far as possible, be avoided. For this reason, it is important that these companies have an efficient administration of the credits granted, this can be achieved through the application of policies and standards that allow the company to obtain an effective collection that allows to reduce the risks that may lead to uncollectible accounts that end up affecting the profitability of the entity.

The management of companies must take into account the effective implementation of the use of strategies to reduce accounts receivable, since at present it is of utmost importance to have an optimal control of them, if accounts receivable are not controlled there is a tendency that these are not recovered on time, This would result in companies not having the necessary liquidity to meet their obligations, and it should also be noted that, according to the current situation, it is not convenient that they are not controlled, since due to the devaluation it is not possible for the businessman to replenish his inventory with the collection obtained in the long term.

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