23. Company’s cash and marketable securities management (different)

To the companies as well as to individuals, money is necessary for implementation of the payments, favorable use of rapid possibilities and protection against unexpectedly arising financial problems. Management of money includes effective collecting (collecting, collection) and payments, and also temporary investment of available money. In most cases it is favorable to company to accelerate collecting money and to slow down the payments. The firm aspires to accelerate receiving money on accounts of debtors as soon as possible to start up them in a turn. She aspires to delay calculations with creditors, the policy of maintenance of credit trust of suppliers how allows to derive the maximum benefit from those money which at present are available. For acceleration of collecting money the enterprise uses a number of methods, including electronic drawing of the accounts, the coordinated debiting and the rented mail boxes. Major companies in many cases resort to concentration of money for improvement of control of corporate money, reduction of not used remains and increase of efficiency of short-term investments. Process of concentration depends on three ways of movement of cash between banks: 1) depository transfer checks, 2) transfers through the automated clearing house (ARP) and 3) telegraphic transfers. Control methods practiced by the enterprise behind implementation of payments include use of drafts, opening of special accounts for implementation of payments, accounts with the zero rest, and also implementation operated, and whenever possible — remote payments. Key elements of electronic commerce are electronic exchange of information and two its elements: electronic payment and electronic exchange of financial information. Potentially in all main spheres of management of money, including collecting, payments and investment in market securities, it is possible to involve subcontractors. The optimum level of money should equal, first, to the sum of made transactions at effective management of money or, secondly, the sum necessary for maintenance of the minimum compensatory rest according to conditions of bank in which the firm has deposit accounts. It is useful to represent a portfolio of short-term market securities of the enterprise in the form of a pie cut on three (in essentially identical) parts, described below. 1. A segment of ready money — a part of the market securities acquired for a covering of possible deficiency of money on the settlement account of firm. 2. A segment of adjustable money — the market securities acquired for a covering of adjustable (known) expenses, such as taxes and payment of dividends. 3. A segment of free money — "free" market securities (i.e. acquired for the uncertain purposes).

24. Basic of Accounts receivable management in the enterprise

Analysis and management of enterprise receivables. Receivables – the means which are due to firm, but still it not received. Receivables can be presented by the following articles: Receivables on primary activity (accounts to receiving and bills received) and Receivables on other operations (advance payments by the employee, advance payments to branches, Receivables on dividends and to percent).

Effective management of receivables important for the company as assumes first of all control of turnover of means in calculations, shopping mall acceleration of an turnover is a positive tendency of economic activity of the enterprise. It can be reached at the expense of the following means:

1. Selection of potential buyers

2. Definition of terms of payment

3. Control of Receivables maturity dates

4. Impact on debtors

5. Carrying out the comparative analysis of size Receivables

6. Creation of reserves on doubtful debts

7. The analysis of the actual losses connected with a default of Receivables.