Accounts payable management

Each enterprise in the course of its activities seeks to achieve a stable financial situation. But the production sphere is characterized by periodicity, as a result of which there is a temporary need for additional resources. Replenishment of such a gap, as a rule, is done with the help of borrowed capital. That is why the rational management of accounts payable is considered the most important issue in the work of managers and the accounting department.

Most investors consider the indicator, such as creditworthiness, when studying a new investment object. It characterizes the possibility of the organization not only to attract borrowed financial resources, but also to return them promptly with interest. Accounts payable management includes an item of payments to extra-budgetary funds that have not been made, unpaid invoices for goods delivered and shipped, as well as other debts and unfulfilled obligations.

A specialist engaged in the development of the company's main strategic directions must rely on the primary principles of entrepreneurial activity:

• Maintaining a tendency to maximize profits.
• Maximum reduction of the consumable part.
• Retention of the leading positions in the market of the corresponding goods and services.

In the end, any sources of additional funding are aimed at achieving the above goals. Of course, without a loan, it is almost impossible to imagine a successful production. And the management of accounts payable is based on the regulation of the indicator, which expresses the ratio of own and attracted capital. The main principle is that the amount of attracted capital should not exceed its own value. And this is easy to explain, because if you are unable to pay off your debts due to profits, repayment is done with the help of resources at the company's disposal.

In this regard, it should be noted that the management of accounts payable means the establishment of a limit of funds and approval of the main criteria that allow to obtain additional funds. As a rule, these conditions are approved in a written agreement between the two parties: the borrower and the commercial bank, that is, under a bilateral loan agreement. Exceeding such a limit is not allowed. Management activities should be based on an individual selection of methodology, principles and forms of management in accordance with the industry, the scale of production and the characteristics of a particular enterprise.

If we consider the ratio of debtors and creditors of a separate organization, then the excess of accounts payable is considered a positive moment. This testifies to the savings of own funds, as well as the full use of the possibilities of attracted capital. In addition, the responsibilities of the manager include the rational distribution of borrowed capital in proportion to the set goals. As you know, commercial banks finance organizations only for specific security and strictly designated purposes.

The success of implementing managerial work depends on which methods of managing accounts payable are selected. In this case, no less important role is played by a specific source of income. So, financing can be carried out at the expense of investors in the form of partial contributions or shares in starting capital or participation in new projects, loans to commercial banks, payment by installments for shipped products. In conclusion, it can be said that the management of accounts payable is a fairly complex process, requiring extensive skills and knowledge.