Accounts receivable as a key tool for managing the company's current assets

The management of current assets is a series of measures aimed ultimately at improving the quality of their use. The company strives to reduce the period of cash circulation, i.e. the financial cycle, as much as possible, but without harm to its activities. The size of the financial cycle is inextricably linked with the company's obligations, and therefore with the terms of payment of debtors 'and creditors' obligations. The analysis of accounts receivable, conducted using traditional methods, allows us to judge the effectiveness of managing the company's liabilities. The results of the study are the basis for developing recommendations to improve the effectiveness of the management of accounts receivable and current assets in general.