ASSESSMENT OF ACCOUNT RECEIVABLE MANAGEMENT PRACTICE IN CASE OF COMMERCIAL NOMINEES PLC

Abstract

Effective Account receivable management system can play a very crucial role in a profitable business organization to realize financial performance objectives. The main purpose of this study was to access the management of account receivable practice on commercial nominee’s plc. a case study and to suggest possible solutions that may address the problem in the area of receivable management. Sample of 75 respondents were selected using Toro Yamane’s sampling model from 93 of total population. Primary & secondary data was collected using questionnaire and analysed it using SPSS 20 version software, a descriptive type of research method and mixed research approach was used in conducting the case study. The result of this study evidences that commercial nominee’s plc. Has no means to secure the collection of its credit services. There is a gap between the significant value of the credit services & receivable management practices. The study recommends setting clear receivable management strategy, optimal credit policies and procedures by the management is a requirement so as to manage credit services & receivables efficiently to increase the collection & follow-up to improve the liquidity problem, so; the company shall be achieve better performance.