Improvement of accounting and tax accounting of receivables

Abstract

The relevance of this study is determined by the fact that the importance of effective management of receivables for ensuring financial stability is considered. Reducing the risk of insolvency, improving liquidity, increasing current assets, strengthening trust and reputation, as well as macroeconomic impact are the key mechanisms through which effective management of receivables contributes to the financial stability of enterprises and the country as a whole. The purpose of this study was to find ways to improve work with receivables of enterprises operating in the Khmelnytskyi region of Ukraine. As a work methodology, such research tools as analysis, synthesis, and PESTEL analysis were chosen. The results of the study demonstrated that it is critically important for any enterprise to be able to efficiently record its receivables to avoid the risk of receiving tax fines and interest charges. By implementing new mechanisms for improving accounts receivable accounting, enterprises can obtain more accurate financial reporting, improve cash flow management, ensure timely payment of services and goods from customers, improve compliance with Ukrainian tax legislation, which leads to an increase in their economic efficiency. Accounting for receivables also considers the accounting of customers’ credit ratings, which gives companies an idea of the areas of development and serves as the basis for work on managing funds. Moreover, a well-established business process, from the standpoint of avoiding the appearance of debts due to the improvement of tax and accounting, can also help the government of Khmelnytskyi region to collect taxes more effectively (timely and in full) and promote the development of public infrastructure and the provision of services in the region. The significance of the obtained results lies in the potential contribution to the construction of a stronger and more stable financial system of the Khmelnytskyi region