Analysis of Receivables from Customers in Company x and the Impact of Payment Indiscipline on Business Operations

The diploma thesis addresses two interrelated areas, namely receivables from customers and payment indiscipline. The main purpose of the research was to determine how payment indiscipline affects the company, whether other companies also face payment indiscipline and how to manage it. The analysis showed that optimal receivables management has a fundamental impact on the company's liquidity. A survey was conducted amongst Slovenian companies to determine the frequency of payment indiscipline amongst small companies, the use of security instruments and the collection of overdue receivables.

Problem

The diploma thesis addresses two interrelated areas, namely receivables from customers and payment indiscipline. The main purpose of the research was to determine how payment indiscipline affects the company, whether other companies also face payment indiscipline and how to manage it. In the theoretical part, receivables from customers were defined and the causes and consequences of payment indiscipline, instruments for securing receivables and methods of collection were presented.

Receivables from customers arise from the sale of goods on credit. Monitoring and managing receivables is key to achieving optimal volume. When customers do not settle their obligations at maturity, so-called payment indiscipline occurs.

Payment indiscipline is still a common phenomenon amongst Slovenian companies. The causes of its occurrence may lie in external or internal factors. Payment indiscipline has a negative impact on the creditor's company and can be fatal for many companies.

Unpaid receivables can be collected in various ways. An increasingly established method of verifying companies is credit rating, which provides information about the stability of a company. Receivables can also be secured, thereby preventing the occurrence of payment indiscipline.

Using various indicators, an analysis of receivables from customers in Company X was carried out from 2020 to 2023, and on this basis the structure and turnover of receivables and shares were determined. An example shows the impact of payment indiscipline on the balance sheet. They examined which items in the accounting statements change due to payment delays.

Results

The analysis showed that optimal receivables management has a fundamental impact on the company's liquidity. A survey was conducted amongst Slovenian companies to determine the frequency of payment indiscipline amongst small companies, the use of security instruments and the collection of overdue receivables. The results reveal that companies still encounter the phenomenon of payment indiscipline, against which they often do not secure themselves.

In the case of collecting overdue receivables, they most frequently use a reminder or telephone conversation. At the end of the thesis, measures for improving the management of receivables from customers were presented, the establishment of which could enable companies to reduce or limit payment indiscipline.