Chris Jared Odondi, Dr. Kennedy K. Nteere, Agnes Njeru
Abstract: Financial distress has been a serious challenge to the existence of not only small firms but also The general objective was to investigate effect of Receivable management practices on financial performance of an organization, with particular emphasis on Deloitte East Africa Limited. The study specifically aimed at establishing the effect of preparation of credit sales on financial performance and to assess the effect of Credit guidelines on financial performance and to assess the effect of reviewing level of receivables on financial performance. The study area was Deloitte East Africa Limited headquarters situated in Nairobi, Wayaki way, Waruku in Westlands. A descriptive research design was adopted. Judgmental sampling was a technique applied in identifying respondents who have the information that was required for this study, meaning, all the management employees working in the case company was included in the sample. The study used a sample size of 82 respondents. The choice and identification of key informants was purposive as they were having key information of the companys business information. Questionnaire was the main instrument for data collection. Analysis and interpretation of the data was done using both qualitative and quantitative methods according to research objectives and research questions. The data collected was summarized, classified, tabulated and analyzed qualitatively. Data was then presented using tables, charts and percentages the findings was to help the organization achieve the financial minimums and ensure smooth improvement in the staff performance of Deloitte east Africa. And that proper operating capital management practices in the organization for the effective utilization of the resources for the organizations to enhance their financial performance.
Keywords: Receivables management practices, Credit sales, creation of credit guidelines, Reviewing level of receivables, financial performance, Deloitte East Africa