Current asset management in the enterprise

Current asset management in the enterprise
The crisis of 2008 still affects business-to-business companies. Many of them have problems with current assets in general and with accounts receivable in particular. In a given paper a field research is conducted on the example of a telecommunication equipment producer. The goal of the research is to develop recommendations to improve the efficiency of current assets for the specific example of Russian business-to-business company.
The first part is devoted to theoretical background of current assets management and represents the findings of desk research conducted.
The second part represents field research or analysis of the company’s financial performance. There were used such methods as horizontal and vertical analysis of financial statements, methods, techniques and tools of mathematical statistics: collection and grouping of statistical data analysis and comparison of time series. In the practical part of the research there were used computational and analytical methods, the methods of structural and dynamic analysis, grouping and comparison of modeling techniques.
The third part is mainly devoted to recommendations on how to improve the management of current assets at the enterprise. In order to get a competent opinion an interview with a specialist concerning the research and recommendations was conducted.

Property of business entity consists of fixed and current assets, representing its actual assets, due to which the company carries out its economic activities and by which it has the ability to grow and expand. The state and effectiveness of fixed and current assets are one of the main conditions of success of the enterprise. The development of market relations in our country defines new terms of their organization. High competition, the need to quickly and effectively adapt to rapidly changing market conditions are forcing companies to change its policies toward working capital, search for additional reserves of their efficiency, increase turnover, forcing the company to optimize the structure and volume of current assets.

The problem of lack of current assets becomes the primary concern of financial services and enterprise management. Now it depends on them, how properly and efficiently current assets of the enterprise are organized, how effective are the methods used when working with suppliers, customers, how well planned and supported are reserves, controlled by the collection of receivables, and so on.
The aim of this work is to develop recommendations to improve the efficiency of working capital for the specific example of the Russian company.
To achieve the aim the following has been done:

1. 
   Theoretical background of organization and management of current assets have been studied;
   
2. 
   Various options of working capital formation and current assets financing have been explored;
   
3. 
   Analysis of current assets management in the specific entity has been performed
   
4. 
   Recommendations to improve the efficiency of working capital according to peculiarities of firm activity and its current assets condition have been developed.
   

Theoretical and methodological basis for the study consists of classical and contemporary works of Russian and foreign economists in the field of working capital management, legislation and regulatory materials.
Methodological basis of graduate research consists of methods of financial analysis: the horizontal and vertical analysis of financial statements, methods, techniques and tools of mathematical statistics: collection and grouping of statistical data analysis and comparison of time series. In the practical part of the research there were used computational and analytical methods, the methods of structural and dynamic analysis, grouping and comparison of modeling techniques.
Information base for research are data of financial and management reporting, information from periodicals, monographs and textbooks of domestic and foreign experts in the field of financial management.
SPETSSTROY-SVYAZ is the leading company of the Taganrog-based Proton-SSS Science Production Enterprise Holding, Russia's largest developer and producer of digital telecommunication equipment. The company was founded in the city of Taganrog on October 1, 1996, and has been the exclusive exporter of the Proton-SSS telecommunication platform for more than 14 years.
The main product of the company is a telecommunication platform Proton-SSS. The telecommunication platform Proton-SSS is self-developed hardware-software complex with using electronic components that are produced by the leaders of telecommunication and computer market.
Like all business-to-business companies, SPETSSTROY-SVYAZ faces problems concerning accounts receivable. The findings obtained in the course of the research provide evidence that in order to increase its liquidity SPETSSTROY-SVYAZ should implement the components associated with cash and accounts receivable to the management system of its current assets.