Forming an Effective Mechanism for Managing Accounts Receivable and Accounts Payable

Financial stability of economic entities is the basis for the stability of the national economy. Debt management makes it possible to competently build the organization’s financial flows, regulate work with counterparties, and avoid economic risks. Effective mechanisms of receivables and payables management make it possible to release funds from circulation, use them for other necessary purposes without attracting additional sources of financing, and find ways to maintain normal conditions for the functioning of enterprises. This also positively affects the assessment of the organization’s financial condition, provides additional liquidity, increases the enterprise’s solvency, and improves the stability of the financial position. For this purpose, the paper systematizes the provisions of the most significant scientific works in the field of receivables and payables management at the enterprise and makes the author’s additions. Special attention is paid to the actual methods of receivables and payables management at the enterprise. The research proposes measures to improve the work with debts and builds the methodology of applying the rating system of counterparties. The proposed sequence for developing regulations for working with debt, especially in terms of improving the policy of rating counterparties and differentiation of contractual terms, has a complex, practice-oriented nature. It is characterized by completeness for both types of debt. Therefore, this sequence has scientific novelty and broad prospects for implementation in the management activities of economic entities.