The Research On Accounts Receivable Management For HD Group Based On Credit

Enterprises can take the cash and selling on credit as two kinds of basic ways whileselling the products. Marketing competition becomes more and more serious, as a result, mostof enterprises have to provide credit to customers to expand sales and reduce the stock. Buttoo much selling on credit will make company get much account receivable finally and itssecurity and accuracy will affect company’s available source. Therefore, doing accountsreceivable management work can not only improve their overall level of quality of the assetsand profits, but also to protect the goals of the enterprise value.Firstly, the thesis reviewed domestic and overseas theories about accounts receivablemanagement, explained the basic contents including beforehand prevention, in-processcontrol and afterwards treatment on accounts receivable and credit management. Secondly,the thesis described the current situation of HD groups’ accounts receivable management, andthen analyzed the main problems and reasons for the invalidation of accounts receivablemanagement, which can be seen as the crucial bottle neck for enterprise’s development. Thethesis argued that the main reasons for the invalidation of accounts receivable management inHD group can be concluded as the deficiency on accounts receivable management andconsciousness of risk prevention. Finally, the dissertation gives some suggestions and detailedsolutions by investigating the existed problems of accounts receivable management in HDGroup. Including improving accounts receivable management system and formatting thescientific restraining mechanism; Establishing an independent credit management tothoroughly carry out the accounts receivable systems; Building creditor’s rights guaranteemechanism, to monitor the progress of the customer and business credit risk, to improve thequality of accounts receivable,to reduce implementation risk and the possibility of bad debtlosses; Improving the accounts receivable collection mechanism to end the state of disorderand confusion, and to ensure accounts receivable timely, full specified amount back; Settingup the mechanism of provision for bad debt, in the event of bad debts, shall be investigatedfor the responsibility of the relevant departments.