Research On Accounts Receivable Management Of A Pesticide Company

Owing to business seasonal fluctuations,pesticide industry revenue to achieve obvious seasonal characteristics,there is a certain scale of accounts receivable is industry practices.At the same time,facing the severe environmental and safety pressure as well as the impact of the international giant pesticides,increasing competition in the industry.In order to expand market share and enhance competitiveness,many enterprises try to adopt credit trading methods such as credit sale or installment payment in sales.The large amount of accounts receivable makes the enterprise capital be occupied without charge,and the capital turnover is difficult,resulting in the decline of asset quality and profit level,thus weakening the profitability of the enterprise.However,the credit system of our country is not perfect at present,the quality of accounts receivable by most enterprises is not optimistic and lacks management experience.Therefore,it is necessary to study the management of accounts receivable in China.In this paper,on the basis of combing the domestic and foreign related research,industry 10 the data of listed companies as the industry reference data,using the scale,the growth,the turnover rate of accounts receivable financial indicators,the structure of the accounts receivable aging and customer type quality of A company's accounts receivable are analyzed.Again,it is expounded in this article A company accounts receivable management present situation,discovered that A company's accounts receivable management is lack of credit management department,credit policy system is not sound,payment collection procedures problems such as imperfect and further analyze the external and internal cause of formation of these problems.Lastly,in view of these problem and their causes,concrete improvement measure should be made from that prior,the case,the post event management and the risk transfer of receivable funds on account receivable.In advance,the three links of approaches mainly include additional credit management departments,perfecting credit policy,strengthening the credit approval process,to set up the overdue money early warning mechanism,improve the sales staff incentive mechanism,perfect the accounts receivable collection procedures;Accounts receivable risk transfer to the international business and domestic small and medium customers and dealers proposed different risk transfer mode.Although this paper is a case study of company A,it is of reference to other enterprises in the same industry in receivables management.