Every modern enterprise in the conduct of its activities makes settlements with multiple counterparties. As a result, receivables and payables are inevitably formed. These are some of the most important financial indicators that affect all aspects of an organization's business activities. The main activity of our company Kay Solutions is to audit receivables and payables. We propose to get acquainted in more details directly with the procedure itself.
Basic Goals and Procedure for Auditing Receivables
Before determining how to conduct an accounts payable audit, it is necessary to initially indicate the main objectives for which this audit is conducted.
- Confirming the actual existence of indebtedness.
- Verification of the reliability of the information stated in the financial statements, based on civil law.
- Internal control of the presence or absence of overdue debts and their timely repayment or write-off.
At the first stage an audit of accounts payable is carried out, an analysis of the compliance of existing records with the real state of affairs is carried out. To this end, necessarily studied the contracts concluded with counterparties. Based on the information gathered during the audit, an inventory is carried out. These data are in the accounting accounts (62, 60, 76). In addition, all counterparties receive requests for reconciliation of payments.
Next, the audit of accounts receivable companies involves determining the delinquency and the date of the last payments. Further clarifies the accountants and other responsible persons of the reasons for its formation. Specialists of our company necessarily provide sensible recommendations on how to repay them or registration of restructuring. In addition, the analysis of arrears is determined by the amounts, the statute of limitation of which has expired (more than 3 years). If these are available, and there are no events that interrupt the limitation period, these debts are subject to write-off.
Auditing Accounts Receivable
There are certain types of receivables that need special attention from the management of the organization.
- Settlements with personnel. For the company can be quite serious consequences in the case of debts on wages to employees. With regard to the management is quite likely the initiation of a criminal case. For this reason, an audit of accounts receivable of this type is mandatory.
- Debts to the tax service and other obligatory payments. Thanks to the audit, the enterprise will be able to avoid many risks, because in the case of arrears on such payments can have serious consequences and sanctions.
- The presence of loan debts should also be paid attention to, since most often the collateral for obtaining a loan is property. If there are delinquencies, there is a risk of losing assets.
Professional work for your peace of mind
Thanks to the audit, there is an opportunity not only to confirm the reliability of available calculations, but also to identify problems. Thanks to this, the financial performance of the organization can be significantly improved and economic risks can be avoided. To order services of Key Solutions - help in questions of accounts receivable and payable in Kiev is simple. To do this, just call the phone number shown on the screen. The price is stipulated in each case separately, because it depends on many features and nuances. We cooperate with enterprises all over Ukraine.
Popular questions:
- What is the term of repayment of accounts receivable?
Usually this term is stated in the contracts. If the repayment period is less than 12 months, then the debt is considered short-term and if it is longer, then it is long-term. If the repayment period is not fixed in the agreement, the creditor has the right to demand repayment at any time.