An analysis of current practice in the management of receivables in the Czech Republic

Abstract

The management of receivables is a set of rules and practices that minimize the risk of unsettled receivables and it is carried out in three phases - preparation, to maturity, and past due. Business risk management policies should be part of the management of receivables in each company. The aim of the paper is to present the results of empirical research conducted in spring of 2012 in the whole spectrum of business and institutions in the Czech Republic. Structured questionnaires were used as a basic tool. The dates were tested by statistical methods. Hypotheses were tested by hypothesis testing for variance, the regression and correlation analysis was then used to verify the test. The research has demonstrated that in the Czech Republic, the situation in the area of insolvency especially in the business environment is unfavourable. The survey showed that a total of 61 % of all organizations in the Czech Republic currently record an unsettled receivable in their accounts. The companies also do not use the effective instruments of the management of receivables.