ABSTRACT

Effective management of account receivables is very essential in the performance of business organizations in Nigeria. This research work gives an overview of the impact in which effective management of account receivables has in the performance of business organization like Unilever Plc. A clear research shows that account receivables are credits extended to a company customer while allowing them reasonable time to pay. Since the introduction of account receivables in business organization, sales and purchases are now made on credit basis. This has really helped in alleviating the sufferings of business organizations and individuals. Some of the problems of this study are; lack of effective management of account receivables in the organization, lack of account receivables department in the organization and lack of effective collection plan which can reduce business — busting delinquencies. These problems were investigated using primary and secondary data. Primary data involves the use of questionnaire and personal interview to gather important information needed for this work. Secondly, data involves the use of text books and also the researcher used the five year financial summary of the organization, journals newspapers. The hypothesis were tested using CHI — Square Method and Simple Correlation (Pearsons Product Moment Correlation) method. Findings reveal that there is a significant relationship between account receivables in the performance of the organization, also that effective management of account receivable increases the performance of the organization.