ASSESSMENT OF THE EFFECTIVENESS OF MANAGEMENT OF SETTLEMENTS WITH BUYERS AND CUSTOMERS

Abstract

The authors have investigated the theoretical and practical aspects of evaluating the effectiveness of managing accounts receivable from buyers and customers. The significance of analyzing accounts receivable is substantiated as a key element of an enterprise's financial stability, directly influencing its liquidity and solvency. The study examines the management process of settlements, which encompasses the formation of contractual relations, the incurrence and accounting of debt, its analysis, monitoring, and performance evaluation. Key indicators for assessing management effectiveness are identified, including the structure and maturity of debt, turnover ratios, and the average collection period. Problems arising in the settlement management process are defined, specifically late payments, high levels of overdue debt, and the imperfection of internal control procedures. The study analyzes core efficiency indicators, notably the accounts receivable turnover ratio, the collection period, the share of overdue debt, and doubtful debt indicators. It is demonstrated that the application of these indicators allows for an assessment of the velocity of capital circulation, financial risk levels, and the quality of settlement management. The primary challenges in the management process are established, including payment delays, the increasing share of overdue receivables, the inadequacy of internal control systems, and insufficient analytical support. It is determined that the effectiveness of settlement management depends on a systematic approach to organizing accounting and analytical support, as well as the utilization of modern control methods. Strategic directions for improving the accounts receivable management system are proposed, including the implementation of advanced control methods, automation of accounting and cash flow planning, and the reinforcement of monitoring over receivables. It is proven that a systematic approach to the analysis and management of settlements with buyers and customers contributes to enhancing the financial resilience of the enterprise, optimizing cash flows, and forming an effective credit policy. Furthermore, it is established that systematic analysis and improving the quality of managerial decisions are vital factors in ensuring sustainable economic development within an unstable external environment.