The Impact of Accounts Receivables Collection Strategies on Financial Performance of Local Authorities. A Case Study of Mazowe Rural District Council
- Author
- Mororo, Rufaro
- Title
- The Impact of Accounts Receivables Collection Strategies on Financial Performance of Local Authorities. A Case Study of Mazowe Rural District Council
- Abstract
- The primary focus of this study was to examine the impact of accounts receivable collection strategies on the financial performance of MRDC. The organization is owed millions of dollars by a diverse range of customers, including residents, commercial businesses, farmers, miners, clinics, and hospitals. The research utilized a descriptive approach, collecting data from a sample of 6 MRDC cost centers through interviews and questionnaires. The data was analyzed using SPSS version 21 software. The key findings include the receivables collection strategies that are effective in improving MRDC's financial performance. The most effective strategies were court-ordered collections and the efforts of the internal accounts receivable team. The greatest challenge faced by MRDC's cost centers was the non-payment of court fees, which hindered the effectiveness of the legal collection approach. There is a clear relationship between the implementation of collection strategies and MRDC's financial performance. The researcher concludes that MRDC should invest in training its collection team to develop specialized skills for debt recovery in various economic conditions. Additionally, the collection strategies should be tailored to accommodate customers with both large and small outstanding balances. The study recommends that MRDC develop robust internal control systems to support the collection team's efforts, as well as provide specialized training to equip the team with the necessary skills for collecting debts in different economic environments
- Date
- JUNE 2024
- Publisher
- BUSE
- Keywords
- Accounts Receivables , Financial Performance, Local Authorities and Mazowe Rural District Council
- Supervisor
- NIL
- Item sets
- Department of Accountancy
- Media
-
Rufaro Mororo.pdf