Ysb, Sales And Receivables Aspects Of The Internal Control System Design

Internal controlling system of modern enterprise management is an important component of the internal management and all forms collectively. To survive and develop enterprises, pursuit objective of profit maximization, we must build up a pratical system of internal controls to keep the enterprises to be self-adjusting and correcting wrong and self-constraining, to reduce unnecessary economic losses, and improve overall efficiency of the enterprises so that a certain economic activities of enterprises can be run in accordance with the normal order. In recent years, some domestic private enterprises is not perfect because of their internal control system, some financial scandal were exposed to society, for example, Skyworth and the younger brother of former Chairman Huang Hongsheng, Skyworth former executive director Wong Pui was suspected of stealing company property and was convicted by the Hong Kong court. The Erie Zhengdunfu chairman and CEO, and former president of Kelon Gu ChuJun, the former president of LU Aokema Qunsheng, are also have been sacked due to similar reasons. These phenomena of private enterprises has sounded the alarm bell in the development of private enterprises in the process of how the founder separate powers, how to dilute the color of family business, how to set up controlling system and adjust during its implementation, how the domestic and private enterprises show a positive image to society is an urgent task for the current private enterprises.Sales and Collection management is a major factor in those areas where it has a direct impact on business decisions or capital efficiency and profits. The top management of small and medium-sized private enterprises always pays more attention to sales revenue, and overlooked internal control for sales and AR collection, especially in the last few years the popular of application of credit, leading to the operational risks of growth of small and medium-sized private enterprises. The biggest problem they facing are sharp decline of net profit and shortage of capital, in this new market, only a safe, effective sales and collection system can help the medium and small-sized enterprises to achieve the goal they set. In this paper, problems of internal controlling for sales and collection of YSB were discussed.The article first introduced the basic concepts and principles for internal control and sales and collection, theory, development and research profiles, control elements and control procedures for internal control, the need for internal control for sales and collection, followed by the evaluation and analysis of internal control sales and collection for current YSB Company, to find out where the problem lies. Finally, a practical proposal was raised to improve the YSB's internal control for sales and collection.