Study On Management Of Account Receivables In The Process Of Internationalization

Accounts receivable are creditor’s rights, due to credit sale, which is liquidity assets freely occupied and it can not generate profit for company. Its management has direct influence on company’s operation and realization of company’s value. Therefore, the accounts receivable management has been financial management difficulties and focus. And because of the characteristics of the construction industry, accounts receivable management issues in the construction industry are especially obvious.With the implement of China’s massive infrastructure investment and the development of new urbanization, the construction enterprises have made important contribution to the development of the national economy, especially central enterprises play a lead role in the construction industry. But with the growth of business, the quality of accounts receivable of construction enterprises has continued to decline, which has become an important factor affecting the sustained and stable development of construction enterprises.As the "one belt one road" strategy has been put forward, China’s construction enterprises play a important role in the implementation of "going out" strategy. Their internationalization process is bound to be further improved, which also increases the difficulty of their receivables management and complexity, therefore we must attach great importance to the study on the accounts receivable management process of national construction enterprises. Therefore, how to strengthen the process of internationalization of accounts receivable management has more value and significance.Construction company Z in internationalization process is in the forefront of China’s construction enterprises, and it is a typical sample of Chinese construction enterprises overseas development. However, with the rapid development in recent years, overseas business, the international accounts receivable occupied gradually increase. The ratio between accounts receivable and total revenue proportion gradually is increased. It is necessary to further improve international accounts receivable management. Therefore, in the case of Z, and combining with business and market conditions, this paper try to study how construction companies should strengthen the management of accounts receivable in the process of internationalization, in order to further improve the quality of accounts receivable, avoiding accounts receivable risk and then ensure and enhance corporate value. Through the analysis of accounts receivable management in internationalization of company Z, this paper summarizes the problems existing in the management of accounts receivable in the process of internationalization from the angles of external and internal and finally puts forward suggestions from three angles:the whole process of dynamic management of receivables, credit management and accounts receivable risk. I also hope that results of this study can be meaningful to other Chinese companies that do business in the international accounts receivable management process.