scholarly journals Accounting, analysis and auditing integration as tools for effective company liability management

2020 ◽  
Vol 6 (3) ◽  
Author(s):  
R. Pukała ◽  
F. Yerdavletova ◽  
A. Nurmagambetova ◽  
A. S. Jondelbayeva
Keyword(s):  
South African ◽  
Financial Stability ◽  
Management Practices ◽  
Debt Management ◽  
Effective Management ◽  
Working Capital ◽  
Liability Management ◽  
Accounts Payable ◽  
Analysis System ◽  
The Moment

The article reviews the issues of effective management of the accounts payable, which financial stability and stability of the company depend on the state of the company, which is extremely important for business at the moment. Based on the analysis of scientific works of domestic and foreign scientists-specialists in the field of accounting, auditing and analysis, existing practice of company liability accounting, auditing and analysis organization, recommendations for effective management of accounts payable are developed and summarized. Recommend to make well-known coefficient analysis of the turnover of working capital, including for the management of accounts payable, which allows you to identify the weaker aspects of debt management practices. Foreign practice of company liability accounting, auditing and analysis is introduced. Examples of inefficient liability management in South African companies are given. The procedure for accounting of debts for which limitation period has expired and which has tax consequences, is briefly reviewed. Concluded that the majority of Kazakhstani companies carry out their activities at the expense of borrowed funds, since the share of their own funds in the capital is very low. When dealing with any contractors, it is important to remember that the business should bring benefit to both sides of transaction. The integration of accounting, analysis, and auditing of the company’s liabilities contributes to compliance with this simple rule. Key words: liabilities, payables, accounting, audit and analysis system, accounts payable management, financial stability, solvency, borrowed capital, integration.

scholarly journals Management of receivables and liabilities of the enterprise

2020 ◽  
pp. 28-31
Author(s):  
Olha YARMAK ◽  
Kyrylo PROKUDIN
Keyword(s):  
Performance Indicators ◽  
Management System ◽  
Significant Contribution ◽  
Key Performance Indicators ◽  
Economic Security ◽  
Debt Management ◽  
Effective Management ◽  
Management Algorithm ◽  
Accounts Payable ◽  
Five Elements

Introduction. For economic security and stability of the enterprise is an important topic of research and identification of ways to manage receivables and payables. A significant contribution to solving the problems of theoretical and practical aspects of receivables management of enterprises was made by such domestic scientists as O. Lishchenko, I. Sereda, О. Pustiak, Y. Demchenko, O. Rybalko, M Sychova, N. Sirenko, O. Smirnova et.al. However, the multifaceted nature of the problem requires further research on the theoretical and methodological foundations of ensuring the formation and functioning of an effective management system of receivables of the enterprise. The purpose of the work is in the researching and studying the management system of receivables and payables at the enterprise. Results. However, opinions on the direct organization of debt management of the enterprise are quite different. The model of receivables management, according to O. Lishchenko, I. Sereda, includes five elements. While O. Pustiak and Y. Demchenko believes that the algorithm for managing the company's calculations for goods, works and services includes as many as eight stages. Thus, according to O. Rybalko and M. Sychova, the receivables management algorithm should include seven stages. In turn, the model of accounts payable management according to N. Sirenko and O. Smirnova includes only three elements. However, as we can see from the above information, most authors forget that in the debt management system one of the important stages is their relationship with the basic goals and key performance indicators of enterprises, as well as with the conditions of business. In this case, if the consideration of the basic objectives in one way or another can still be found in the proposed algorithms for debt management of the enterprise, then taking into account the conditions of development of macro- and mesoenvironment of the enterprise is not carried out. Conclusion. Thus, the development of management decisions to optimize the level of receivables and payables should be preceded not only by an analysis of the conditions of existence of the enterprise, but also an assessment of the level of manageability of the debt itself. At the same time, at high and medium levels of management, the company's management should use incentives to reduce the level of debt of the company, while at low and insufficient – mostly “heavy”.

scholarly journals Public Debt Management and The Country’s Financial Stability

Studia Humana ◽  
2021 ◽  
Vol 10 (3) ◽  
pp. 10-18
Author(s):  
Piotr Misztal
Keyword(s):  
Public Debt ◽  
Financial Stability ◽  
Management Practices ◽  
Significant Risk ◽  
Debt Management ◽  
State Budget ◽  
Domestic Capital ◽  
Public Debt Management ◽  
The Government ◽  
Polish Economy

Abstract The government debt portfolio is usually the largest financial portfolio in the country. It often contains complex and risky financial structures and can generate significant risk to the state budget and the country’s financial stability. Therefore, governments are required to have sound risk management and sound public debt structures to limit exposure to market risk, debt financing or rolling risk, liquidity risk, credit, settlement and operational risk. In recent years, the debt market crises have highlighted the importance of sound public debt management practices and related risks, and the need for an effective and well-developed domestic capital market. This may reduce the vulnerability of the economy to adverse economic and financial shocks. However, it is also important for the government to maintain a macroeconomic policy that ensures sound fiscal and monetary management. The aim of the research is to present the theoretical and practical aspects of extremely important issues such as public debt management and to indicate the most important implications for the financial stability of the country on the example of the Polish economy. The study uses a research method based on literature studies in the field of macroeconomics, economic policy and finance, as well as statistical analysis of the studied phenomenon. Results of research indicate that effective public debt management can reduce the economy’s vulnerability to financial threats, contribute to the financial stability of the country, maintain debt stability and protect the government’s reputation among investors.

St. Petersburg Summit of the «Group of Twenty»

2014 ◽  
pp. 15-25
Author(s):  
D. Smyslov
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Financial Stability ◽  
Management Practices ◽  
Emerging Market ◽  
Action Plan ◽  
Tax Avoidance ◽  
Financial Education ◽  
Debt Management ◽  
Wide Range

«The Group of Twenty» is an informal forum for international cooperation between the leading developed states, the largest developing countries and emerging market economies. The article explores the key strategic approaches and governance decisions related to the main directions of international macroeconomic and financial regulation elaborated during the Russian chairmanship in the G-20 (December 2012 – December 2013) which culminated in the St. Petersburg summit. The author makes attempt to estimate viability of discussed approaches and decisions against the background of the actual problems of global economy. The author pays special attention to the St. Petersburg summit’s approaches to the problems of providing favorable conditions for strong and sustainable economic growth and of addressing unemployment. The point is how to achieve an acceptable compromise between the purposes of fiscal and monetary policies, on the one part, and providing balanced state budgets, as well as price stability, on the other part. Also, the importance of a wide range of radical structural reforms is stressed. The author argues that Russia proposed to vital themes to discuss at G-20 summit: long-term financing for investment as a foundation for economic growth and improvement of public debt management practices. The article describes the principal provisions of the Declaration and the Action plan related to various aspects of the reconstruction of financial and monetary system, including: tackling tax avoidance; implementing the Basel-3 standards, dealing with the adequacy of the bank’s capital; ending «too big to fail» problem; reforming over-the-counter (OTC) derivatives market; reducing reliance on the credit rating agencies; addressing potential risks for financial stability posed by the shadow banking; increasing financial inclusion, financial education and strengthening financial consumer protection; eliminating the international misbalances through broad based rebalancing of global demand; resisting of all forms of protectionism and promoting liberalization of global trade and investment; moving towards exchange rate flexibility to avoid persistent exchange rate misalignment; transforming the International Monetary Fund and Financial Stability Board. The author points to significant achievements of G-20 as a coordinating body for economic crisis management and, at the same time, discloses obstacles complicating its activities and development.

scholarly journals FORECASTING OF PRODUCTION FACTORS FOR EFFECTIVE SOCIO-ECONOMIC DEVELOPMENT OF ORGANIZATIONS IN RURAL AREAS OF THE REGION

2020 ◽  
Vol 35 (1) ◽  
pp. 258-268
Author(s):  
M.T. Lukyanova ◽  
Keyword(s):  
Cash Flow ◽  
Rural Areas ◽  
Effective Management ◽  
Internal Environment ◽  
Working Capital ◽  
Financial Flows ◽  
Production Factors ◽  
Accounts Payable ◽  
The Impact ◽  
Negative Factors

Effective management of financial flows ensures the solvency of the enterprise, helps to accelerate the turnover of assets and accounts payable, minimize the financial cycle, the release of working capital on this basis and reduce financial dependence on sources of borrowed capital. Evaluation of the criteria for the effectiveness of money management and identification of the reasons for the deviation of indicators from the planned values allow the company to respond quickly to changes in the external and internal environment, to equalize the impact of negative factors. The sources of cash flow are funds received in three main areas, come from operational, investment and financial activities. When analyzing net cash flow, it is possible to determine which of these areas negatively affects the value of net cash flow.

scholarly journals Global Financial Stability Report, October 2019

2019 ◽  
Author(s):  
Keyword(s):  
Institutional Investors ◽  
Financial Stability ◽  
Sovereign Debt ◽  
Management Practices ◽  
Financial System ◽  
Debt Management ◽  
Corporate Debt ◽  
Market Economies ◽  
External Borrowing ◽  
Global Financial System

The October 2019 Global Financial Stability Report (GFSR) identifies the current key vulnerabilities in the global financial system as the rise in corporate debt burdens, increasing holdings of riskier and more illiquid assets by institutional investors, and growing reliance on external borrowing by emerging and frontier market economies. The report proposes that policymakers mitigate these risks through stricter supervisory and macroprudential oversight of firms, strengthened oversight and disclosure for institutional investors, and the implementation of prudent sovereign debt management practices and frameworks for emerging and frontier market economies.

scholarly journals The accounts payable management practices of small, medium and micro enterprises in the Cape Metropolis, South Africa

2016 ◽  
Vol 13 (1) ◽  
pp. 77-83 ◽  
Author(s):  
Samuel Tabot Enow ◽  
Peter Kamala
Keyword(s):  
South Africa ◽  
South African ◽  
Management Practices ◽  
Decision Makers ◽  
Competitive Advantages ◽  
Accounts Payable ◽  
African Context ◽  
The Government ◽  
Cash Basis ◽  
Micro Enterprises

The purpose of this article is to investigate the accounts payable management practices of small, medium and micro enterprises (SMMEs) in the Cape Metropolis. The study is motivated by a lack of research on payable management practices of SMMEs in South Africa. Data are collected from a sample of 200 SMMEs by means of a closed-ended questionnaire and analyzed using descriptive statistics and inferential statistics. The findings of the study indicate that 70% of the sampled SMMEs purchase only on cash basis. Of the sampled SMMEs, 22% purchase on both cash and credit, while 8% purchase only on credit basis. Of those that purchase on credit, 72% pay their creditors promptly to take advantage of discount facilities. To manage their accounts payable, 52% of the SMMEs use computers. Only 43% settled accounts payable on the last day that the payment is due. The results further indicate that a lack of personnel and time are the main factors that inhibit the SMMEs from managing their accounts payable effectively. The above results suggest that SMMEs are inclined towards purchasing on cash or paying promptly when they purchase on credit, which could indicate that they had a lower bargaining power relative to that of suppliers who may have viewed these entities as risky ventures to which they were reluctant to extend credit terms. Based on the above findings, this study recommends that the SMMEs decision-makers be educated on the competitive advantages gained by buying on credit, most important of which are improving cash flow and building supplier relationship. In addition, the decision-makers may be trained, perhaps through Government intervention, on how to overcome the factors that inhibit them from managing their accounts payable effectively, by using computers. The Government may also provide guarantees to SMMEs’ suppliers to relax the credit terms extended to these entities. This study makes several original contributions to literature. It is the first study to investigate the accounts payable management practices of SMMEs in the Cape Metropolis. Entities whose management of accounts payable had up till now been neglected appeared in the prior research to their peril. Secondly, this study provides a unique insight into SMMEs management of their liquidity by focusing on their management of most immediate obligations (accounts payable), which are critical for these entities’ survival given their limited access to finance. The proposed study thus fills the gap in research on the accounts payable management practices employed by SMMEs in South Africa. Although various studies have been published on the accounts payable management practices on SMMEs in other countries, no study was found within the South African context. This study therefore contributes to the debate on the accounts payable management practices of SMMEs in a unique context of South Africa and inspires other researchers to investigate the same in other Metropolis in the country

scholarly journals The Effects Of The Great Recession On Corporate Working Capital Management Practices

2012 ◽  
Vol 11 (7) ◽  
pp. 753
Author(s):  
Rakesh Duggal ◽  
Michael C. Budden
Keyword(s):  
Management Practices ◽  
Negative Relationship ◽  
Shareholder Wealth ◽  
Working Capital ◽  
Capital Theory ◽  
Accounts Receivable ◽  
The Great Recession ◽  
Cash Conversion Cycle ◽  
Accounts Payable ◽  
Firm Profitability

Working capital theory prescribes using the optimal amount of net working capital to maximize shareholder wealth. Evidence from multiple countries indicates a negative relationship between the cash conversion cycle or net working capital and firm profitability. However, severe economic conditions may force firms to change their inventory, accounts receivable, and/or accounts payable policies, causing the firms to use more/less net working capital. Taking a sample of non-financial S&P 500 firms, many of which are multinationals, this study finds significant changes in the cash conversion cycle in 2010 for some industries. Also, it appears firms in general held more net working capital in order to face new economic challenges.

Managing Economic Calculations of a Company

2015 ◽  
Vol 4 (4) ◽  
pp. 23-27
Author(s):  
Ровенский ◽  
Yu. Rovenskiy ◽  
Наточеева ◽  
N. Natocheeva ◽  
Белянчикова ◽  
...  
Keyword(s):  
Financial Performance ◽  
Debt Management ◽  
Working Capital ◽  
Credit Policy ◽  
Accounts Receivable ◽  
Accounts Payable ◽  
Enhance Efficiency ◽  
A Company ◽  
Financial Losses ◽  
Sources Of Capital

The paper considers the issues of how to manage the accounts receivable and accounts payable based on the findings of analysis of thereof. The authors propose to sort out definite stages in debt management and suggest ways to calculate the working capital amount to be allocated to accounts receivable; to assess the company financial performance, subject to the provision of onemonth and three-month discounts to debtors, and to evaluate the effect of the increase in accounts receivable in the upcoming period. All the above help to enhance efficiency of the company’s credit policy and of the accounts payables management and also allow to reduce financial losses related to attracting additional sources of capital.

scholarly journals DIAGNOSTICS OF THE ENTERPRISE’S FINANCIAL CONDITION DURING THE CRISIS

2021 ◽  
Author(s):  
Daria Yasynska ◽  
◽  
Olena Dobrovolska ◽  
Keyword(s):  
Economic Activity ◽  
Financial Stability ◽  
Economic Security ◽  
Working Capital ◽  
Systematic Calculation ◽  
Financial Condition ◽  
Normal Limits ◽  
Accounts Payable ◽  
Crisis Conditions

The paper reveals the essence of diagnostics of the financial condition of an agricultural enterprise during crisis and stipulates the necessity for its systematic implementation. As there are a lot of companies in Ukraine facing the crisis and as a consequence go bankrupt, which in turn negatively affects the dynamics of repayment of accounts payable, it is extremely important to study the financial condition of the company, dynamics of its payables and receivables in order to find the best ways to overcome the crisis and the normalize its economic activity. The article offers economic proposals for stabilizing the economic activity of the enterprise during the crisis. The article also proposes the systematic calculation of the enterprise’s liquidity and keep to these indicators within the normal limits. In its turn, there are several levels of financial security of the enterprise: absolute (the enterprise has sufficient working capital for operation); normal (the enterprise has enough funds to buy inventory and cover costs); satisfactory (the enterprise does not have enough working capital and it resorts to medium-term or long-term liabilities); critical (the company uses long-term loans to finance its activity) and crisis (the company is unable to meet its obligations). The financial condition and financial and economic activity of the enterprise is assessed by its solvency. Solvency acts as an external sign of financial stability, the essence of which is the security of current assets by long-term sources of formation. The success of the enterprise depends on the analysis of risks of threats to the management of financial and economic security of the business entity and leveling and consolidation of efforts in times of crisis. Thus, by analyzing the financial and economic activity of the enterprise, you can determine the dynamics of changes in economic performance. Control of financial and economic security of the enterprise will allow to carry out economic activity at a normal level and in case of deterioration to predict and prevent the onset of crisis conditions that can lead to bankruptcy.

scholarly journals ABOUT THE PROBLEM OF ACCOUNTS IN THE ECONOMY OF RUSSIA

2021 ◽  
Vol 10 (34) ◽  
Author(s):  
A.Y BYSTRITSKAYA ◽  
◽  
A.A GOLOVIN ◽  
S.D MAYKOVA ◽  
D.V NIKOLENKO ◽  
...  
Keyword(s):  
Financial Stability ◽  
Research Area ◽  
Financial Assets ◽  
Effective Management ◽  
Accounts Receivable ◽  
Economic Instability ◽  
Russian Economy ◽  
Accounts Payable ◽  
Overall Performance ◽  
Twofold Decrease

In modern conditions, receivables have become an integral part of the economy of domestic enterprises, which is associated with economic instability, variations in their financial stability and often negatively affects the solvency. The growth of accounts receivable adversely affects the financial turnover of creditor enterprises, for debtors the impossibility of quick and timely fulfillment of financial obligations leads to an increase in accounts payable, thereby reducing their financial stability and increasing the likelihood of bankruptcy, which makes the problem of formation of accounts receivable a topical research area. During the study, an assessment of the state of receivables in the Russian economy was carried out, the main trends and their causes were identified. It was found that the volume of accounts receivable in the Russian economy today, despite an almost twofold decrease in 5 years - from 11.4 trillion. rub. up to 6.2 trillion rubles, as before, is quite impressive, which is associated with economic instability, accompanied by periods of greater recession and crisis phenomena. This is confirmed by the results of the study, which emphasize that today in the economy about 20% of the financial assets of enterprises are in the form of accounts receivable. Effective management of accounts receivable in difficult economic conditions is becoming increasingly important, since it is aimed at improving the overall performance of domestic enterprises and the economy.

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