How to Manage Debt

likhon450@ · Post by **likhon450@** » Thu Jan 23, 2025 5:13 am

With uncontrolled growth of accounts receivable, even a profitable company may experience a cash gap, i.e. there will not be enough money to pay current payments. Therefore, it is important to calculate it, analyze the dynamics from month to month and take measures to reduce it. You can allocate a function for managing accounts receivable within the company - and then include the debt turnover period in the employee performance indicator.
Evgeniya Lapa
Financial expert "Fintablo"
First of all, the creditor himself is interested in the debt repayment, so regularly checking the amount and reminding debtors about payments is his task. Reporting can be done by either a full-time or external accountant, or by the business owner himself, if the company is small. Here are some tips that will help control the amount of receivables and minimize risks:

Conduct a debt inventory regularly. The company must check its debt south africa telegram data once a year - when filing reports for the tax service. But it is better to conduct checks more often, for example, once a quarter, especially if there are many counterparties.

The inventory will help identify debtors who are due soon or who have recently missed a payment. Such debtors can be sent reminders or warnings about possible sanctions.

Check the status of debtors. It is important to check the reliability of the counterparty not only before signing the contract, but also after, especially if the agreement is concluded for a long term. From the moment of the transaction, the debtor may become a party to a lawsuit or initiate bankruptcy proceedings. You can check information by the TIN or OGRN of the company in open sources:

In the arbitration case file . The website will show whether the company has ever been a defendant, and if so, how many times the court has satisfied claims against it. If a company is often sued and pays compensation to plaintiffs, it is likely that problems may arise when working with it.
The FTS website will show the cur