Management of current assets of the enterprise

Effective management of the company's current assets is an important aspect of the organization's financial policy. In contrast to non-revolving, it is the working capital that is almost entirely responsible for the company's solvency in current operations and provides the best rate of profitability.

The policy of management of current assets represents a set of measures that are aimed at optimizing and rationalizing the composition, sources and amount of working capital financing to increase the efficiency of its use.

Management of current assets of the company aims to increase the profitability (profitability) of working capital (maximize profits) and ensure sufficient and sustainable solvency of the enterprise. To some extent, these goals are opposed. If you look closely, then to increase profitability, you should invest money assets in various types of working capital with a pre-determined lower liquidity compared to cash . And to ensure a sustainable level of solvency, an enterprise must constantly have on its account a certain amount of money to make current payments, which it thus actually withdraws from circulation, or this part of the funds must be placed in the form of highly liquid assets.

Management of current assets should solve the problem of their inadequacy. One of the main reasons for the shortage of working capital is the lack of stability in the receipt of raw materials. Often an incorrectly organized purchase leads to the supply of dozens of times more raw materials than the daily consumption rate requires. Salt payments are made, which lead to distraction of a huge amount of working capital.

The company often faces a problem of non-payments, which also affects the amount of working capital. Management of current assets is also designed to solve this problem. Each company should classify its creditors by the term of the debt, and also determine who should be paid in the near future, who could wait a further period, and who, maybe, should not pay at all.

In the first place in this list are payments to commercial banks on loans, as well as tax payments to the budget. Lack of timeliness in this case is fraught with serious penalties.

Effective management of circulating assets allows the company to pay labor and raw materials, to realize expenses that are related to sales and production activities. To do this, we must solve the following problems.

The main problem, the solution of which will allow significantly replenishing the company's current assets, is rational inventory management. Many Western economists argue that the sufficiency of working capital is not affected by anything like the speed of turnover of the commodity stock.

The second aspect of solving the problem of increasing the volume of current assets is the improvement of the company's settlement system . Management of current assets in this case includes measures to accelerate the calculation. To do this, it is necessary to create a register in which information will be found about all payers, contract amounts, timing of settlements and other parameters. At the same time, it is necessary to presume from whom to wait for delinquency, and for how long, and who may not pay.

The condition of working capital is greatly influenced by the state of the economy in the state. So, in the conditions of the transition period, many enterprises were faced with a shortage of current assets. This was affected by price increases, a general decline in production and other factors.

In the market conditions, new management models should be introduced , which should be taken over by the enterprises.