THEORETICAL ASPECTS IN THE FORMATION OF
PEDAGOGICAL SCIENCES
International scientific-online conference
35
IMPROVEMENT OF OVERDUE RECEIVABLES AND PAYABLES AND
THEIR AUDIT
Raximjanov Baxriddin Baxramjon o'g'li
Banking and finance academy of the Republic of Uzbekistan
https://doi.org/10.5281/zenodo.14731470
Annotation.
This thesis investigates the challenges associated with
overdue receivables and payables, highlighting their impact on organizational
financial health. By integrating theoretical and practical approaches, it provides
strategies for effective management and introduces an audit framework that
leverages modern digital technologies. The research aims to bridge the gap
between traditional financial practices and contemporary technological
advancements, offering actionable insights for financial professionals and
auditors.
Keywords:
Overdue Receivables, Overdue Payables, Financial
Management, Audit Framework, Digital Technologies, Risk Management,
Liquidity, Profitability, Blockchain, Artificial Intelligence.
The effective management of overdue receivables and payables plays a
critical role in ensuring financial stability and operational efficiency in
organizations. This thesis explores innovative strategies and audit
methodologies to improve the management and control of overdue accounts,
emphasizing their impact on liquidity, profitability, and risk management. The
research also examines the role of digital technologies and regulatory
frameworks in enhancing transparency and accuracy in the auditing process.
In today’s business environment, the efficient management of receivables
and payables is paramount to maintaining a healthy cash flow and ensuring
organizational sustainability. Overdue receivables and payables often lead to
financial instability, reduced profitability, and strained stakeholder
relationships. Despite advancements in financial management, many
organizations struggle with overdue accounts, resulting in liquidity challenges
and increased operational risks.
The lack of robust audit mechanisms exacerbates these issues. One of the
most crucial financial operations in a business is the accounts receivable (AR)
process, which demonstrates how well a business handles incoming cash flow
and is a great way to gauge its financial health. Cash flow is crucial, but there are
other considerations as well, such as accuracy, speed, and dependability.
Depending on a company's size, this may be easier said than done, particularly
when it comes to handling a large number of documents, such as purchase
THEORETICAL ASPECTS IN THE FORMATION OF
PEDAGOGICAL SCIENCES
International scientific-online conference
36
orders and invoices, as well as accounting procedures, such as payment
recording and invoice reconciliation. In the absence of appropriate
documentation, protocols, and process enhancements, the AR process may
become disorganized and lead to issues that have an adverse effect on your
business's finances as well as.
Only with consistent revenue can businesses function, and that revenue is
contingent upon the effective handling of consumer payments. Business process
automation removes uncertainty from process management and gives teams the
ability to design workflows that reduce duplication of effort and boost
productivity.
It’s not uncommon for suppliers to offer buyers credits, discounts, or even
extended payment dates, especially if they’ve proven to be trustworthy.
However, this can easily result in a customer base that routinely pays late,
putting the company’s balance sheet in jeopardy.
By establishing a formal credit approval subprocess within the AR process,
the risks and time spent managing late payments are reduced. Here are some
tips for gettings started:
so that the rules will be reasonable and
based on transaction size.
Create a standardized checklist for new customers that includes a credit
report analysis and background checks for large accounts.
Set as many procedures as you need for different buyer levels, and review
them regularly to make sure they’re appropriate and competitive.
Establish accountability and set a time limit on approving or rejecting
credit applications. If you’ve told sales that you’ll turn around credit requests in
X number of days, they’ll quote that number to their customers.
This research provides valuable insights into improving financial
management practices, enhancing audit efficiency, and leveraging technology to
address overdue receivables and payables. The findings are particularly relevant
for financial managers, auditors, and policymakers.
References:
1. Atrill, P., & McLaney, E. (2020). Accounting and Finance for Non-Specialists.
Pearson Education.
2. Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2022). Financial Accounting.
Wiley.
3. Bragg, S. M. (2021). Accounting Control Best Practices. Wiley.
4. Rezaee, Z. (2021). Audit Committees: Responsibilities and Best Practices.
Routledge.
THEORETICAL ASPECTS IN THE FORMATION OF
PEDAGOGICAL SCIENCES
International scientific-online conference
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5. Vasarhelyi, M. A., Alles, M. G., & Kuenkaikaew, S. (2022). Continuous Auditing:
Theory and Application. Emerald Group Publishing.
6. Deloitte. (2022). The Future of Auditing: Leveraging Technology to Enhance
Audit Quality. Retrieved from https://www.deloitte.com
7. PwC. (2023). Receivables and Payables Management in the Digital Era.
Retrieved from https://www.pwc.com
