Receivables Management
1. EXECUTIVE SUMMARY :-
The project deals in “Account Receivable Management with reference to the study of Colorlines Clothing India Pvt. Ltd”. Receivable management is one of the most important aspects of the organization, as it deals with the management of the outstanding. The profit of the company mainly depends on the accounts receivables. Therefore it needs a careful analysis and proper management.
Debtors occupy an important position in the structure of current assets of a firm. They are the outcome of rapid growth of trade credit granted by the firms to their customers. Trade credit is the most prominent force of modern business. It is considered as a marketing tool acting as a bridge for the movement of goods through production and distribution stages to customers.
Till few years back, Colorlines Clothing India Pvt. Ltd. had a very strict policy of selling against advance payments. That was an era of controlled economy. However, with an increasing domestic and international competition, company could no longer afford this policy, in order to maintain its premium position. Further in order to capture a greater amount of market share, it was compelled to go by the industry norms and thus it ushered into the new era of credit sales. This resulted in credit sales going up significantly. A credit limit was sanctioned to every customer. The customers were required to pay the outstanding amount on the due date
This report discusses the importance of managing accounts receivable and provides proven principles for achieving benefits such as increased cash flow, higher margins, and a reduction in bad debt loss. The focus is primarily on commercial (business to business) receivables management. protection against credit risks.
2. INTRODUCTION:-
Meaning of Account receivables Accounts receivable is an accounting transaction which deals with the billing of customer who owes money to a person, company or
The project deals in “Account Receivable Management with reference to the study of Colorlines Clothing India Pvt. Ltd”. Receivable management is one of the most important aspects of the organization, as it deals with the management of the outstanding. The profit of the company mainly depends on the accounts receivables. Therefore it needs a careful analysis and proper management.
Debtors occupy an important position in the structure of current assets of a firm. They are the outcome of rapid growth of trade credit granted by the firms to their customers. Trade credit is the most prominent force of modern business. It is considered as a marketing tool acting as a bridge for the movement of goods through production and distribution stages to customers.
Till few years back, Colorlines Clothing India Pvt. Ltd. had a very strict policy of selling against advance payments. That was an era of controlled economy. However, with an increasing domestic and international competition, company could no longer afford this policy, in order to maintain its premium position. Further in order to capture a greater amount of market share, it was compelled to go by the industry norms and thus it ushered into the new era of credit sales. This resulted in credit sales going up significantly. A credit limit was sanctioned to every customer. The customers were required to pay the outstanding amount on the due date
This report discusses the importance of managing accounts receivable and provides proven principles for achieving benefits such as increased cash flow, higher margins, and a reduction in bad debt loss. The focus is primarily on commercial (business to business) receivables management. protection against credit risks.
2. INTRODUCTION:-
Meaning of Account receivables Accounts receivable is an accounting transaction which deals with the billing of customer who owes money to a person, company or