Implications of Uncollected Accounts to Fiscal and Operational Policy: A Case of Realty Corporation
Uncollected account is a critical indicator of financial volatility, profitability,and customer satisfaction. This business research sought to address the uncollected receivables of a realty corporation in Davao City that brought the organization to difficult cash position and exposed its financial instruments to liquidity and creditrisks for years. The study employed a qualitative, case study design. Data weregathered and analyzed through direct interviews with experts, phone surveys, andfinancial statement audit. The instrument used was a self-constructed interviewguide validated by experts. The “case analysis and business problem solvingmodel”, a scientific process approach to any business problems, was utilized asa tool in identifying the principal problem and the best alternative solution.Results of the analyses and evaluation suggest that hiring an in-house credit andcollection personnel will yield the greatest value of net advantage among otheralternatives drawn. When properly executed, supported and sustained, the bestcourse of action shall help the company maintain a high quality of receivables interms of size and age, establish responsibility and accountability in its collectionpolicies and strategies, reduce delinquencies and bad debts at a tolerable rate,increase chances of recovery and salvaged revenues, and improve its cash flowcondition and exposures to financial risks.Keywords: Social Science, accounting, receivables, uncollected account, case study,Realty Corporation, descriptive design, Philippines