Debtors Management
CHAPTER I
1.1 INTRODUCTION
This chapter introduces the background to the study, which in turn brings out the justification for carrying out the study in the particular area chosen for the case study. The chapter moves on to state the statement of the problem as well as the objectives to be achieved by the carrying out of the study. The delimitation, limitations, and assumptions to be assumed when carrying out the study will be stated. The importance of carrying out the study will be explained. The chapter closes by defining key terms of the research and gives a brief overview of the organisation of the research. A summary of the chapter will be provided.
2. BACKGROUND TO THE PROBLEM
In recent years companies have closed due to a number of reasons. Topping on list reasons is the failure to manage the working capital component particularly debtors. The issue of liquidity has been the cause of many corporate failures.
MIDLANDS STATE UNIVERSITY (M.S.U) is facing a similar problem. The company has a ballooning figure of debtors in its accounts. The problem arising out of the monies tied up in debtors is that the company is experiencing cash-flow problems. The failure to finance day-to-day operations is a cause of concern. Delays in payment of both employees’ salaries and creditors are a common phenomenon in the company.
1.3 STATEMENT OF THE PROBLEM
Is there debtors control system and revenue collection system at MIDLANDS STATE UNIVERSITY?
1.4 SUB PROBLEMS Is there a revenue collection policy? Is there debtor’s control? Is there debt collection?
1.5 RESEARCH OBJECTIVES ➢ To establish the debtors control system being used by M.S.U ORGANISATION ➢ To evaluate the current debtors control system. ➢ To make appropriate recommendations that improves the debtors control system.
1.6 DELIMITATION
The research will be conducted in the bursary department of the MIDLANDS STATE UNIVERSITY.
1.7 LIMITATIONS OF
1.1 INTRODUCTION
This chapter introduces the background to the study, which in turn brings out the justification for carrying out the study in the particular area chosen for the case study. The chapter moves on to state the statement of the problem as well as the objectives to be achieved by the carrying out of the study. The delimitation, limitations, and assumptions to be assumed when carrying out the study will be stated. The importance of carrying out the study will be explained. The chapter closes by defining key terms of the research and gives a brief overview of the organisation of the research. A summary of the chapter will be provided.
2. BACKGROUND TO THE PROBLEM
In recent years companies have closed due to a number of reasons. Topping on list reasons is the failure to manage the working capital component particularly debtors. The issue of liquidity has been the cause of many corporate failures.
MIDLANDS STATE UNIVERSITY (M.S.U) is facing a similar problem. The company has a ballooning figure of debtors in its accounts. The problem arising out of the monies tied up in debtors is that the company is experiencing cash-flow problems. The failure to finance day-to-day operations is a cause of concern. Delays in payment of both employees’ salaries and creditors are a common phenomenon in the company.
1.3 STATEMENT OF THE PROBLEM
Is there debtors control system and revenue collection system at MIDLANDS STATE UNIVERSITY?
1.4 SUB PROBLEMS Is there a revenue collection policy? Is there debtor’s control? Is there debt collection?
1.5 RESEARCH OBJECTIVES ➢ To establish the debtors control system being used by M.S.U ORGANISATION ➢ To evaluate the current debtors control system. ➢ To make appropriate recommendations that improves the debtors control system.
1.6 DELIMITATION
The research will be conducted in the bursary department of the MIDLANDS STATE UNIVERSITY.
1.7 LIMITATIONS OF
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