Matrix approach in the analysis of accounts receivable

Analysis receivable management is an essential component of the corporation’s financial management system. Accounts receivable from customers have a significant share in the structure of working capital. The created accounts receivable management system should ensure not only minimizing losses due to the immobilization of funds, but also obtaining additional profits from this asset. The requirements of the principles of consistency and efficiency necessitate the use of methods of selection and ranking of buyers to increase the impact of management decisions in the management of accounts receivable. To achieve these goals, the matrix approach based on ABC, XYZ, DEF, RST, and KLM analysis methods is the best tool. The greatest effect is provided not by a single or paired application of analysis methods, but by their complex, simultaneous use. To do this, it is necessary to correctly select the main estimated indicator – the total amount of shipments and rank all buyers according to their most significant characteristics based on the matrix approach. The groups of significant buyers selected on the basis of the matrix approach form the object of accounts receivable management and working with the buyers selected in this way will ensure the realization of the goal of financial management – maximizing the market value of the business.