Abstract: Accounts receivable constitute a significant portion of current assets in printing firms. Management in the printing firms therefore have to formulate strategies of effectively managing this important yet sensitive asset. The purpose of the study was to investigating the factors that affect Accounts receivables in printing Industries at Nairobi Industrial area. The study further established how credit policy affect accounts receivable in printing Industries at Nairobi Industrial Area, determined the effects of debt collection performance on Accounts receivables in printing Industries at Nairobi Industrial Area, determined how internal controls affect Accounts receivables in printing Industries at Nairobi Industrial Area and also established how documentation effects on Accounts receivables in printing Industries at Nairobi Industrial Area. The study was descriptive in nature and targets a population of 10 printing firms in Nairobi’s industrial area. A sample of 50 respondents was selected using stratified random sampling in each of the printing industries there were five strata. The strata were that of key management staff, chief finance officer, finance staff, head of delivery and credit control staff where information was collected using semi structured questionnaire administered to the five respondents in the selected firms to collect both qualitative and quantitative information. Where necessary, personal interviews and documentary analysis ware conducted to enhance validity of information gathered using questionnaires. Data was analysed using descriptive statics where measures of central tendency and measures of dispersion were computed to give results. Charts, tables and graphs were used to report findings. The study findings indicated that there were credit policies and internal controls procedures that had been approved by the printing industry management in the management of accounts receivables. The results showed that printing firms maintained proper documentation of accounts receivable, and that the debt collection performance is closely monitored. It was concluded from the study that the credit policy in place should be followed to the letter as it influences accounts receivable management. It was also concluded that strong internal controls measures in accounts receivables need to have a strong management strategy and employees in place. The study recommends to the printing firms management to ensure that proper documentation is also in put place and lastly it was recommended to the management to continuously review debt collection performance and have a record of the same for future follow up.
Keywords: credit policy, debt collection, internal Credit control, documentation and Accounts receivable.
Title: FACTORS AFFECTING ACCOUNTS RECEIVABLES IN PRINTING INDUSTRIES AT NAIROBI INDUSTRIAL AREA, KENYA
Author: ESTHER MATHENGE, Dr. JANE OMWENGA
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
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