FACTORS AFFECTING ACCOUNTS RECEIVABLES IN PRINTING INDUSTRIES IN KENYA

Abstract

Accounts receivable constitute a significant portion of current assets in industrial firms. Management therefore have to formulate strategies of effectively managing this important yet sensitive asset. This 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, 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 statistics 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 in place. The study concludes that the credit policy in place should be followed to the letter as it influences accounts receivable management.