Research On Account Receivable Management Of Hunan Metal Furnace Charge Company

With the development of market-oriented economy and the growing competitionbetween enterprises, credit sale as one of the powerful promotion method s isbecoming stronger and stronger. However, credit sale is a double-edged sword. Onone hand, enterprise can attract more customers, increase sales income and expandmarket share by using the credit preferential policies; On the other hand, if there islack of management towards account receivable, it will lead to the tension ofenterprise cash flow and the increasing cost of account receivable. Therefore, creditsale should foster strengths and circumvent weaknesses, find a proper balance point tomake full use of credit sale and at the same time recover the account receivable in atimely manner.In recent years, the sales income of Hunan Metal Furnace Charge Company(hereinafter referred to as the Furnace Charge Company) is i ncreasing year by year,account receivable also increase dramatically, the huge account receivable burden hasbecome an important bottleneck which restricts the development of the company. Thisarticle embarks from the actual situation of the company, analyzed the presentsituation of the account receivable process management and the quality characteristicof account receivable. Based on the whole credit management mode and3+1creditmanagement mode, dividing the account receivable management into threeinterconnected processes, which are precaution, control and disposal, put forwardtargeted suggestions from the three processes to improve the management ofcompany’s account receivable. The precaution put forward to set up an independentcredit risk management department, effectively evaluate customer’s credit andformulate credit policy by professional fuse, and correctly locate its rank at the sametime, to complete risk management of account receivable by cooperating with salesdepartment and financial department. The control part put forward to standard theaccount receivable confirmation process and the suggested measures to strengthen thedaily management of account receivable.The disposal part proposed methods to speedup account receivable collection and reassess the customer credit.