Establishment of a reserve for doubtful debts for the purpose of taxation of the organization

The creation of a provision for doubtful debts plays an important role in the management of the organization 's receivables. Formation of reserve on doubtful debts allows to optimize calculations of the organization with the budget on income tax. At the same time, by creating a reserve for doubtful debts, the organization has the opportunity to ensure that the accounting (financial) statements contain information on the status of receivables. The analysis of the current procedure for creating a reserve for doubtful debts in order to calculate income tax showed an unreasonable and subjective division of the reserve depending on the duration of its occurrence. Therefore, it is necessary to develop economically reasonable methods of calculation of this reserve.