Accounts receivable and payable in your own words. Accounts receivable is the amount of debts from counterparties. Collection of accounts receivable

Accounts receivable are the debts of counterparties to the organization, money that has not yet been returned to it. Read in more detail what accounts receivable is, what types there are and how to work with it to prevent overdue debts.

What is accounts receivable

Accounts receivable (or, as financiers briefly call it, accounts receivable) are the debts of counterparties to the company. This is money that has not yet been returned to the company. In other words, accounts receivable are everything that is owed to your organization.

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How to reduce the risk of doubtful and bad debts

Every company strives to ensure that doubtful and bad debts do not appear in its activities. There are several effective ways to avoid them.

Prepayment. The company will avoid the risks of non-refund if it includes a 100 percent prepayment condition in the contract. The disadvantage of this method is that not all buyers are ready to work under such conditions.

Ensuring supply. For example, bank guarantee, surety agreement, pledge. If the counterparty does not fulfill its obligations, the company will receive collateral; the debt was paid for by the guarantor.

Letter of Credit. This form of calculation is not often used. In this case, a third party appears in the transaction - the bank, which opens the letter of credit. The buyer transfers funds for payment not to the supplier, but to a special bank account. The bank will notify the supplier that the money is in the account. After this, the seller ships the goods. As soon as the buyer provides the bank with documents confirming the shipment, the bank transfers the money to the supplier’s account. This method is safe for both the buyer and the seller. But it is not popular because of its cost - bank services are not cheap.

VIDEO: What are the risks of non-payment of receivables

Konstantin Anoshkin, a financial expert, explains in the video what the risks of not paying debts are and how to avoid them.

How to analyze accounts receivable in Excel

You can build an analysis graph accounts receivable, which will allow you to clearly see its composition by terms of late payment. The chart is suitable for analysis not only by type of delinquency, but also by client managers or branches. The dynamics of receivables indicating the total amounts will eliminate the need to count them additionally. See how to do it.

How to analyze an enterprise's receivables

The company monitors not only the amount of debt, but also indicators calculated on its basis:

Accounts receivable ratio (Rr). It shows how much of a company's assets are debts. It is calculated as follows:

Kdz = DZ/A, where

DZ – total amount of receivables

A – all assets of the organization.

Another indicator is the turnover ratio. That is, the speed of repayment of receivables - how quickly counterparties transfer money to the company for goods sold.

This ratio shows how many times during the period the company receives payment from customers in the amount of the average outstanding balance. It shows how effectively the company collects debts from counterparties. The indicator is calculated using the formula:

K odz = Vyr / SrOst dz, where

K Odz – receivables turnover ratio,

СрОст з – average balance of accounts receivable. To calculate it, add up the accounts receivable at the beginning and end of the period and divide by two.

Based on the turnover ratio, the average number of days during which the debt remains unpaid is calculated.

O dz = 365 / K dz

These indicators do not have normal values. Each company, depending on the specifics of its work, determines within what limits the indicators should be. The higher the turnover ratio, the faster buyers pay off debts. And this is better for any enterprise. But high turnover does not always indicate the efficient operation of the company.

Entrepreneurial activity requires direct interaction with a wide range of people, which includes suppliers, banks, buyers and others. All of them are called counterparties, that is, those agents who have a direct impact on the organization. The position of his company in the market and competitiveness depend on how competently an entrepreneur works with counterparties. Counterparties are divided into debtors and creditors. Counterparties are one of the parties to a contract in civil law relations.

And also, to make it easier to keep track of funds, similar concepts of “debit” and “credit” were introduced. Thanks to these concepts, the account is divided into two halves: debit is income, and expense is credit, the left and right columns of the account, respectively.

Who is a debtor?

Accounts receivable are included in the financial statements and are recorded in account 62 “Settlements with buyers and customers” and 76 “Settlements with various debtors and creditors”. It is quite dynamic and depends on the company’s interaction with clients and partners. We can say that it is this type of debt that forms the company’s profit. At the same time, it is also a source of formation equity organizations.

What is accounts payable

The creditor is the one to whom debt is owed. In other words accounts payable- This is a type of debt that arises on a contractual basis. For example, a company purchases components for its own production. The cost of components is accounts payable. However, the debt does not include the costs of delivery and packaging of goods. Today there are two types:

• A debt for goods that must be repaid within a specified period of time;
• Debt for services and goods, the term of which has already expired;
• Debts paid to extra-budgetary funds;
• Wages owed to own staff.

Accounting is carried out according to accounts corresponding a certain type accounts payable. This type debt is reflected in financial statements. Thus, accounts payable represent not only overdue payments, but also the organization's current obligations to its creditors, which have not yet expired. An organization can write off its debt if it is repaid, or if the creditor does not consider it necessary to collect it in a timely manner. The statute of limitations for a loan according to the law in Russia is 3 years (for Russian counterparties). Thus, accounts payable are the company’s obligations that must be repaid within a specific time frame. This column actually assumes the organization’s main expenses for its activities.

Types of accounts receivable

Accounts receivable are divided into two types:

• standard (or regular);
• expired (or unjustified).

The standard type of receivables includes the issuance of a loan (drawing out an agreement with a certain amount) for a specific period. Such debt is strictly planned and must be repaid before a specific date. As soon as the validity period expires, the debt becomes overdue. By violating the terms of the contract, the debtor company receives fines and penalties. To reduce the risk of unjustified debt, the creditor organization must:

• analyze reports in a timely manner;
• look for ways efficient work with debtors: automate the process, carry out restructuring, work only with recommended, reliable counterparties;
• assign the right to claim debts under an assignment agreement with assignment of rights.

Thus, regardless of the type of receivable, work with counterparties in this direction should be carried out constantly, since this type of debt is the key to the success of any organization.

How to write off accounts receivable?

Today, legislation gives organizations the right to write off overdue receivables only in the following cases:

• term limitation period expired at 3 years;
• there is a decision that it is impossible to collect such debt;
• if the debtor company is liquidated.

At the same time, the Tax Code establishes that “receivables” can be written off as non-operating expenses, with the creation of a reserve for doubtful debts, if they are hopeless.

If the debt is written off at a loss, then such debt is legally canceled and does not reduce the tax base for income tax. This, of course, entails additional losses for the company. To write off debt, it is necessary to draw up an inventory report of receivables, as well as justification and an order from the head of the enterprise. It is possible to write off a debtor before the debtor is liquidated. Any liquidation process begins with a protracted bankruptcy procedure.

During this procedure, bankruptcy trustees hold meetings of creditors, at which the main financial claims against the debtor are stated. At the same time, after the confiscation and sale of property, cash returned to the creditor company in order of priority. The legislation gives the right to completely write off the “debt” when receiving a debt during this period. Non-overdue receivables are written off when the debtor repays the invoice. Thus, handling accounts receivable and payable is important for the well-being of the company. To do this, it is necessary to conduct constant financial monitoring and carefully select counterparties for work.

Today we will talk about accounts receivable. You tell me what’s wrong with this, everything is simple here! But don’t rush to conclusions, this matter has its pitfalls.

Any entrepreneur knows that accounts payable are the debt of your organization to counterparties (banks, suppliers, etc.), and accounts receivable are the debts of counterparties to your organization. Accounts receivable should be considered as an asset of the organization, since the main source of activity of the organization is generating income, and accounts receivable are directly related to income.

The manager’s task is to find the balance between accounts payable and receivable in order to ensure the stable operation of the organization. Tipping one side of the scale, for example with accounts receivable or payable, can lead to bankruptcy of the organization. Therefore, it is necessary to organize work to collect accounts receivable.

• Accounts receivable control.

Trite? Yes! But without control, you will not be able to understand who owes you and how much.

The first rule of a manager who does not have a lawyer on staff is to request a report from an accountant on the status of accounts receivable and payable at least once every two weeks. Mandatory once a month. This way you will clearly see all the debt in numbers, which will allow you to make the right strategic and management decision.

• Regularly review on the website of the Federal Tax Service in electronic services: Business risks: Check yourself and your counterparty (https://egrul.nalog.ru/)
• Information about legal entities who have tax arrears, have tax arrears and/or do not represent tax reporting more than a year.
• Mass registration addresses and much more.

Monitor information from the Federal Tax Service (Tax Inspectorate) and view statements for your debtor counterparty. You should be wary of the following information:

• About the change legal address legal entity;
• About the change of director;
• On entering information about the beginning of the reorganization or liquidation of the debtor.

• View the case file on the website Arbitration Court(http://kad.arbitr.ru/) You will see whether there are claims against your debtor, how many there are and for what amount.
• Take the time to look at the file of enforcement proceedings against the debtor on the website Federal service bailiffs (http://fssprus.ru/iss/ip/)

All these indirect signs may indicate that your debtor is not going to pay his debt and may be preparing for bankruptcy.

Debt control will allow you not to let the situation take its course and promptly return your receivables to the organization.

• Working with accounts receivable.

Constant work with accounts receivable, organized “like clockwork,” will bring you good results.

Important! Practice shows that receivables are best collected in the first 6 months, and the further the collection period goes, the more difficult it will be to collect them.

The general statute of limitations is 3 years - this is the period during which you can apply for debt collection. But you shouldn’t delay until the last minute. The economic situation is changing so quickly that sometimes it happens like this: they held out until the last minute, began to prepare documents for the court, but the debtor organization is already bankrupt or has already been liquidated. Of course, everyone understands that it is almost impossible to get your money at the stage of bankruptcy, even if you stand in line as a creditor.

• Claim work.

Constant claims work is the key to your success in collecting receivables.

What is included in the claim work?

— claims, notifications, etc.

Sending claims to all known addresses by registered mail with notification.

A telephone reminder about the existing debt to the debtor (a telephone reminder does not replace the need to send a claim to the debtor!).

• Judicial work.

Representation of the organization in court hearings.

What is involved in judicial work?

Preparation of a package of documents for the court (calculation of the amount of the claim, penalties, state fees, writing statement of claim and all necessary procedural documents, etc.)

Representing your organization in court.

Obtaining a decision and writ of execution.

Advice: In order for you to independently organize the work of collecting receivables, contact an attorney or lawyer so that they can develop two packages of documents for you.

Exactly for your organization, under your contract, under your type of activity (supply, services, contracting, etc.) with links to regulations.

1. For claim work: sample notifications, claim form.
2. For forensic work: sample statement of claim, sample calculation of the amount of the claim, interest.

Having developed these document packages just once, they will serve you for several years.

• Work according to the writ of execution.

After the decision comes into force, you will receive a writ of execution, which will need to be sent to the bailiff service. After receiving the writ of execution, the bailiffs are required to initiate enforcement proceedings and collect debt.

Important! The writ of execution can be sent for execution to the bank where the debtor’s current account is opened - this speeds up the execution process several times if there are funds in the account or they are received.

Manage accounts receivable, don’t leave everything to the last minute.

Your delay in collecting the receivable may result in the impossibility of receiving funds. Those organizations that do not have a debt collection process or are carried out sporadically receive uncollectible receivables.

After all, competent and constant work with accounts receivable will help you return funds to the organization, and a professional approach to completing the task will make it easier to obtain results.

Head of the legal bureau Abramenko O.V.

July 2016 (c) website

The essence of accounts receivable

The essence of accounts receivable is that in accounting, these “debts” are considered part of the company’s assets, that is, in fact, they are still included in profit. According to the laws accounting everything must be clear, and it is believed that established deadlines obligations must be unconditionally repaid, so the total amount automatically goes to the asset, but this is a theory. In practice, this is often not the case. This is why accounts receivable management is necessary. It is necessary to check and analyze each amount and ensure timely payment. It is necessary to have supporting evidence primary documents. The total amount of receivables until debts are repaid is compensated by funds temporarily withdrawn from the company. This is done in order to obtain maximum profits and retain profitable partners.

If accounts receivable exceed accounts payable, then the enterprise is considered profitable and successfully operating. Accounts receivable are included in the balance sheet asset and are part of working capital.

Accounts receivable is basically a normal business process in an organization; its operations include:

Advances issued to suppliers of goods and services;
- debt of accountable persons;
- debt of buyers and customers, within established periods;
- overpayment of taxes and fees to the budget.

Suppliers' accounts receivable

Such debt arises at the time of payment to the supplier and is repaid at the time the goods or services are received. This period can last several days or months depending on the nature of the relationship. Usually all terms and conditions are stipulated by the parties in the contract. Therefore, when managing accounts receivable, the main governing document is the contract.

During the period between payment and shipment, a receivable is formed and a financial obligation arises on the counterparty to repay this debt.

Accounts receivable from buyers and customers

Such debt arises at the time of shipment of goods or services and is repaid at the time of payment by the buyer or customer. The main supporting document is the act of completion () or the delivery note (for inventory items). Payment terms are regulated by an agreement between the two parties.

In this case, the company ships goods or provides services without advance payment, and at this moment a receivable is formed, the counterparty becomes a debtor.