RECEIVABLES MANAGEMENT IN MICRO AND SMALL ENTERPRISES

Receivables Management is also known as Debtors Management. It is one of the key components of Working Capital Management. If goods are sold on credit basis Accounts Receivables are generally created. Receivables are one form of loan given to a customer by the seller. The prime goal of Receivables management is to increase sales, avoid bad debts, decrease transaction cost related to maintenance of accounts and collection of sale proceeds and finally, enhance profits of the Enterprise. Debtors Turnover Ratio (DTR) and Average Collection Period (ACP) are the tools useful for knowing efficiency of Receivables Management. This Research paper focuses on Receivables Management in selected Micro and Smaller Enterprises (MSEs) in Andhra Pradesh state of India. Current Research is done using secondary data. The data gathered is analyzed using Debtors Turnover Ratio (DTR) and Average Collection Period (ACP). Statistical tools including Mean and ANOVA are used for analysing the data.