THE EFFECT OF ACCOUNTS RECEIVABLE MANAGEMENT ON A WATER SUPPLY COMPANY'S PROFITABILITY MOGADISHU – SOMALIA
The purpose of this research was to investigate how accounts receivable management affected the profitability of Water supply Company in Mogadishu, Somalia. Design, Methodology, and Approach: The study’s primary data was collected through a quantitative research approach and an online survey. The target population was a private water supply company; Data was gathered from 44 respondents who worked in a water supply company's finance and accounting departments. It has been chosen to use random sampling. Questionnaires were used to collect data. The data was prepared by modifying before being assembled and displayed in tables and figures. It was also assessed with the help of (SPSS).Findings: The majority of respondents strongly agreed that the company provides promotional discounts, resulting in an increase in sales. The water supply also has a solid receivables management policy in place, which guarantees that receivables are collected efficiently, lowering bad debt losses and thereby increasing the company's profitability. Because accounts receivables account for a substantial share of a company's assets, all efforts should be coordinated to ensure optimal investment in them, and the credit-control control department should be properly supported to speed the collection process.
Sales discount, Bad debt, Aged accounts receivables, and Profitability of the organization