Cash collection improvement project : Receivables control
Mömmö, Marika (2021)
Mömmö, Marika
2021
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2021072916890
https://urn.fi/URN:NBN:fi:amk-2021072916890
Tiivistelmä
The purpose of this thesis was to implement a cash collection improvement project for Company X. The research problem was how to implement receivables control effectively. The objective was to investigate and become knowledgeable of the matters that affect the effective receivables control based on the research materials. The scope of the research was limited to the corporate debt collection perspective in Finland. The research and collection methods literature consisted of timely topics related to the process, such as legislation related to debt collection, temporary amendments to legislations, acts, reports, research, surveys, statistics, releases, and articles.
The research results obtained in the thesis are significant for those working in debt collection and receivables control to be aware of the relevant legislation related to debt collection. This ensures that companies know how to operate correctly and by defined regulations. The debt collection's success depends on several factors, of which the most important can be considered a real interaction between the parties in ascertaining overdue receivables. In these cases, professional and friendly personalized service guarantees the continuation of the customer relationship. As companies handle debt collection themselves, the company should invest in an automated receivables management program and care of up-to-date processes. According to related research on receivables control, in the results, it became apparent that systematically monitored and utilized receivable indicators are necessary for the business's continuation.
The author's financial management project objectives were to retrieve Company X's overdue receivables and create a credit controlling process. During the collection, the author found out the critical root causes related to overdue invoices, which were necessary for the collection process's success, and observed the problems in invoicing from the level of both automated and manual. By focusing mainly on finding out overdue receivables causes, a process related to the collection was improved, and Company X's receivables were retrieved more rapidly. The outcome of the cash collection improvement project was to implement a report called Reasons For Overdue Invoices. The report includes issues, immediate corrections, root causes, suggested corrective actions, why, and effects. The report also included the responsibilities areas of the teams regarding cash collection. Another outcome of the project was a credit controlling process and determining policy guidelines for the company to be used in the future. The described cash collection improvement project is confidential.
The research results obtained in the thesis are significant for those working in debt collection and receivables control to be aware of the relevant legislation related to debt collection. This ensures that companies know how to operate correctly and by defined regulations. The debt collection's success depends on several factors, of which the most important can be considered a real interaction between the parties in ascertaining overdue receivables. In these cases, professional and friendly personalized service guarantees the continuation of the customer relationship. As companies handle debt collection themselves, the company should invest in an automated receivables management program and care of up-to-date processes. According to related research on receivables control, in the results, it became apparent that systematically monitored and utilized receivable indicators are necessary for the business's continuation.
The author's financial management project objectives were to retrieve Company X's overdue receivables and create a credit controlling process. During the collection, the author found out the critical root causes related to overdue invoices, which were necessary for the collection process's success, and observed the problems in invoicing from the level of both automated and manual. By focusing mainly on finding out overdue receivables causes, a process related to the collection was improved, and Company X's receivables were retrieved more rapidly. The outcome of the cash collection improvement project was to implement a report called Reasons For Overdue Invoices. The report includes issues, immediate corrections, root causes, suggested corrective actions, why, and effects. The report also included the responsibilities areas of the teams regarding cash collection. Another outcome of the project was a credit controlling process and determining policy guidelines for the company to be used in the future. The described cash collection improvement project is confidential.