The Management of Account Receivable and Its Impact on the Performance of Business Organization in Nigeria

ABSTRACT This study is centered on the management of account receivable and its impact on the performance of business organization in Nigeria. The study specifically evaluates the extent to which sales growth has significant relationship with profitability of quoted selected firms in Nigeria; and specificallyexamined the impact of debt on profitability of quoted selected firms in Nigeria; and it also determined the impact of account receivables on profitability of quoted selected firms in Nigeria. The study is empirical and ex-pos facto method was adopted. Secondary data were extracted from annul reports and accounts of selected quoted firms. The data were inferentially analyzed using Statistical Package for Social Sciences (SPSS) version 23 and the result shows that sales growth has no impact on profitability of quoted selected firms in Nigeria; that debt has no impact on profitability of quoted selected firms in Nigeria; and that Accounts receivable has no impact on profitability quoted selected firms in Nigeria. Based on findings, the study recommends that: sales and marketing department of the company should pay closer attention to the growth pattern of inventory usage and incorporate it in sales forecasting technique; that materials management unit should also pay attention to sales growth over the years and thus take into consideration, the apparent relevance of sales and production cost in making decision with regards to inventory; and that organizations should adopt the inventory keeping method that best suits their operation.