Preliminary communication

MANAGEMENT OF ACCOUNTS RECEIVABLE IN A COMPANY

Eleonora Kontuš orcid.org/0000-0002-6144-9501 ; The town of Kastav, Kastav Budget and Finance Department Manager

Abstract

Accounts receivable management directly impacts the profitability of a company. Firstly, the purpose of the empirical part of the study is to analyze accounts receivable and to demonstrate a correlation between the accounts receivable level and profitability expressed in terms of Retun on Assets (ROA) of sample companies. Secondly, the aim of theoretical research is to explore cost and benefits of changes in credit policy, determine the independent variables which have an impact on net savings and establish a relationship among them in order to develop a new mathematical model for calculating net savings following a revision of credit policy. On the basis of research result, a mathematical model for calculating net savings and following a revision of credit policy, has been developed and with this model a company can consider different credit policies as well as changes in credit policy in order to improve its income and profitability and establish a credit policy that results in the greatest net profitability.

Keywords

accounts receivable; profitability; net savings; credit policy

Hrčak ID:

104526

URI

https://hrcak.srce.hr/104526

Publication date:

28.6.2013.

Article data in other languages: croatian

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